The Treatment of Efficiencies in Merger Review: An International Comparison

Submitted by:
Ann-Britt Everett and Thomas W. Ross
University of British Columbia and Delta Economics Group Inc.

November 22, 2002

(PDF: 247 KB)

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Table of Contents

1. Statement of Purpose and Introduction

   1.1 Purpose
   1.2 Introduction
   1.2.1 Motives for Mergers
   1.2.2 Changing views of efficiencies
   1.2.3 The Role of Efficiencies and the Goals of Antitrust
   1.2.4 Types of Efficiencies
   1.2.5 Incorporating Efficiencies Into Merger Analysis
   1.2.6 What Efficiencies Count?
   1.2.7 Trading off efficiency gains and competition losses
   1.3 The Following Chapters

2. Australia

   2.1 General Background
   2.2 Merger Review Process
   2.2.1 Steps in the Assessment
   2.2.2 Informal Clearances
   2.2.3 Application for Authorization
   2.2.4 Litigation for Breach of s. 50
   2.3 Historical Context and Evolution of the Role of Efficiencies
   2.4 Definition and Measurement of Gains in Efficiency
   2.4.1 Efficiencies in Informal Considerations and in Litigation for Breach of s. 50
   2.4.2 Efficiencies in Applications for Authorization
   2.5 The Methodology and Welfare Standard Employed
   2.5.1 Informal Considerations and breach of s. 50
   2.5.2 Application for Authorization
   2.6 Efficiencies Gains and Consumers
   2.7 Merger specificity
   2.8 Attainability of efficiencies in a less anti-competitive manner
   2.9 Elimination or Near Elimination of Competition
   2.10 Efficiencies in the Review of other Competitive Restraints

3. The European Union

   3.1 General Background
   3.2 Merger Review Process
   3.3 Historical Context and Evolution of the Role of Efficiencies
   3.4 Definition and Measurement of Gains in Efficiency
   3.5 The Methodology and Welfare Standard Employed
   3.6 Efficiencies Gains and Consumers
   3.7 Merger Specificity and Attainability in a Less Anti-competitive Manner
   3.8 Whether Gains in Efficiencies can "Justify/Offset" the Elimination or Near Elimination of Competition
   3.9 Policy Statements or Guidelines on the Treatment of Gains in Efficiency in the Review of Mergers

4. United Kingdom

   4.1 General Background
   4.2 Merger Review Process
   4.3 Reform Forthcoming
   4.4 Historical Context and Evolution of the Role of Efficiencies
   4.5 Definition and Treatment of Efficiencies
   4.6 Efficiencies in other Competitive Restraints

5. United States

   5.1 Merger Review Process
   5.2 Historical Context and Evolution of the Role of Efficiencies
   5.3 Definition and Measurement of Gains in Efficiency
   5.4 The Methodology and Welfare Standard Employed
   5.5 Efficiencies and Consumers' Welfare
   5.6 Merger Specificity and Attainability In a Less Anti-Competitive Manner
   5.7 Efficiencies and Other Competitive Restraints
   5.8 NAAG Guidelines

6. Concluding Thoughts
   
   
7. Bibliography
   
   
8. Appendix A - Relevant Australian Merger Provisions
   
   
9. Appendix B -- Relevant EU Merger Provisions
   
   
10. Appendix C - Relevant UK Merger Provisions
    
    
11. Appendix D - Relevant US Merger Provisions