In an article by Dr Cristina Caffarra, Professor Gregory S Crawford, and Dr Helen Weeds published by the CPI Antitrust Chronicle, the authors summarize key considerations in recent vertical media mergers in the U.S. and EU and show how AT&T/TW deviated from these in important ways: in failing to consider that the integrated entity might foreclose over-the-top video providers in its role as ISP, in its ready grant of efficiency claims, and in its evisceration of the use of bargaining models in vertical merger analysis.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...