In the recently published Universal/EMI decision, the European Commission developed a novel theory of harm based on the impact of the transaction on the merging parties’ bargaining power. This memo explains the economic reasoning behind the Commission’s bargaining theory and presents a critical view of its application to the recorded music industry. In particular, the memo argues that the theory did not fit the facts of the case, and highlights some of the pitfalls to be avoided when testing such bargaining theories of harm.
Premier League replica kit: Relevant product markets to assess exclusivity and football club market power
Recent enforcement by the UK competition authority, with clubs fined for price-fixing and existing precedent on exclusive dealing, has not deterred clubs from...