Alive and Kicking: Collusion Theories in Merger Analysis at the Federal Trade Commission (reprint)
Malcolm Coate, Jun 19, 2012
This paper explores the use of collusion theories in merger analysis at the U.S. Federal Trade Commission (“FTC”). The 1992 Merger Guidelines (“Guidelines”) focused more on unilateral effects concerns, relegating collusion analysis to a second-tier theory. That said, both structural and behavioral conditions conducive to establishing or maintaining an arrangement to restrict competition were listed in the Guidelines to structure collusion analysis. This paper undertakes a systematic review of 75 merger decisions to identify the conditions that increase the likelihood of a collusion finding. Standard structural concerns are readily identified, while behavioral factors defy characterization. The results of the analysis also support a Folk Theorem in which structural concerns are validated with some type of performance evidence. Further work finds that allegations of maverick conduct add little to the analysis, while the Bush administration appears to have been slightly more likely to identify a collusion problem than the Clinton administration.
Reprinted from the CPI Journal, Autumn 2008, Volume 4 Number 2
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh