Keywords: merger policy, digital markets, potential competition, conglomerate mergers
JEL codes: L41, L13, K21
Abstract
Big tech mergers are frequently occurring events. What are the competitive effects of these mergers? With the help of a simple model we identify the acquisition of potential competitors as a pressing issue for merger control in digital industries. We also sketch a few recent theories of harm of horizontal and conglomerate mergers that are potentially relevant in digital industries. Finally, we draw some policy recommendations on how to deal with mergers in such industries.
Published as: Big Tech Mergers
in Information Economics and Policy
, Vol. 54,
100868,
March, 2021
