Competition proceedings increasingly involve economic analysis at every stage.
We use theoretical economic analysis and empirical tools to analyse markets, identify the key questions, assist in locating information relevant to these questions, and help formulate the economic answers.
Merger analysis
- What is the relevant market?
- Is the merger likely to create significant additional market power, either through unilateral or coordinated anti-competitive effects?
- Are there vertical or conglomerate concerns?
- What empirical evidence is relevant to the assessment of the potential anti-competitive effects?
- Is the merger likely to create significant efficiencies? Will consumers benefit from them?
- What remedies are most suitable to addressing the competition concern?
Analysis of dominance and abuse
- Does the company have market power? Is it dominant?
- Is a particular business practice likely to foreclose competitors or otherwise harm competition? Will consumers likely face higher prices or lower quality supplies?
- Could a particular pricing practice be viewed as exploitative?
- Is there a legitimate commercial justification for the company's behaviour?
Vertical agreements
- Can a vertical agreement restrict competition in the markets where the buyer or the seller operates?
- Does a vertical agreement have significant pro-competitive effects? Is it indispensable for achieving these pro-competitive effects?
Horizontal agreements and cartel investigations
- Is there evidence that a cartel or other horizontal agreement operated over a certain time period or product range?
- Has a cartel resulted in significantly higher prices or other harm to consumers through lower product quality or choice?
- Which markets were affected by the cartel and what was the value of sales in those markets?
- What was the damage inflicted on customers? Were customers able to pass on any overcharge to end consumers? What is the likely size of damages that can be claimed?
Damages estimation
- What was the economic impact of the behaviour claimed to have caused damage to a third party?
- What would sales, prices and profits have been if the behaviour had not taken place?
- How does this compare with the actual outcome?
State aid
- Has a state aid been granted? Would a market investor provide financing on equivalent terms?
- Is the state aid justified by some form of market failure?
- Does the aid distort competition in the market? Does it affect trade?
Network industries and regulatory proceedings
- Is regulatory intervention justified?
- What is the appropriate form of regulation or remedy?
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