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.
Lexology Index recognizes 44 CRA competition experts globally
This year, 44 CRA experts were named among the leading Competition Economists, with four recognized as Competition Future Leaders – Economists. This...