Ex Post Merger Review: An Evaluation of Three Competition Bureau Merger Assessments

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TABLE OF CONTENTS

1. Executive Summary

2. Introduction

3. Main Elements of the Merger Review Process

4. Overview of Studied Cases

• 4.1. Corus-WIC
• 4.1.1. Market Definition
• 4.1.2. Entry and Other Considerations
• 4.1.3. Conclusions
• 4.2. Carmeuse-Lafarge
• 4.2.1. Product Market Definition
• 4.2.2. Geographic Market Definition
• 4.2.3. Countervailing Power, Failing Firm and Entry
• 4.3. Fording
• 4.3.1. Market Definition
• 4.3.2. competitive Effects

5. Post-Merger Market Outcomes

• 5.1. Corus-WIC Interviews
• 5.2. Carmeuse-Lafarge Interviews
• 5.3. Fording Interviews

6. Analysis of Consolidation in Radio and the Corus-WIC Merger

• 6.1. The Effects of Changes in the Regulatory Regimes
• 6.2. The Effect of Changes in Concentration in the U.S.
• 6.2.1. Economic Theories of Mergers in Broadcasting
• 6.3. The Canadian Experience
• 6.3.1. Data
• 6.3.2. Large Markets Have Become More Concentrated
• 6.3.3. Consolidation Increases Station Revenue and Entry Decreases It
• 6.3.4. Effect of Mergers on Entry
• 6.3.5. Effect of Mergers on Variety

7. Evaluation of the Bureau’s Assessments

• 7.1. Outcomes versus Predictions
• 7.2. Entry
• 7.3. Countervailing Market Power
• 7.4. Additional Suggestions Arising From the Review of the Corus-WIC Transaction

References