Will the merger be approved or not?
Any merger fulfilling specific thresholds needs to be approved by the competition authorities. Our stepwise approach can give sellers, buyers or third parties, a prior knowledge of the likely effects of a merger. In the complicated cases, where the competition authority moves for remedies or a prohibition of the merger, the economic effects are normally the central issue.
Are the agreements legal?
Some agreements are more important than others. They may be central to the distribution of an important product, enabling lower costs due to joint production with a competitor or the setting up of a strategic alliance. If they are found to be too restrictive and illegal they are void. Thus the agreements need to be re-negotiated, you could be fined by the competition authorities and there is a risk for private damages. In order too avoid this situation we offer economic assessment of the effects and thus the legality of the agreements entered into.
Is the behaviour a justified commercial action or anticompetitive abuse?
Large players have a special responsibility governing the competition on the market. They are therefore subject to specific restrictions on their behaviour. If these restrictions are too severe this will lead to inefficient markets as the large enterprises become afraid of acting competitively. If, on the other hand, the restrictions are too soft, the new entrants may be forced out by low prices or exclusionary conduct. We excel in assessing when a company should be seen as dominant and whether a specific behaviour is anti-competitive or a signal of competition.
What degree of harm has the anti-competitive behaviour caused?
Private enforcement is becoming an increasingly important part of the European competition law enforcement system. The process is driven by the urge from the victims of a behaviour (cartel or abuse of dominance) to be compensated for occurred losses. But how is the size of the loss determined? Whether you have suffered loss from anticompetitive behaviour or if you’re evaluating a private damages suit, we can help you assess the size of damages.
Is the state intervention positive or illegal?
State aid can be a spur for new businesses and innovation. However it can also distort competition on the market. Whether government funding leads to distortive state aid or market efficiencies largely depend on the structure of the market, i.e. if there are any market failures that the government needs to address, and on how the aid is given. Public funding on market conditions are normally not regarded as state aid. We can assist in balancing the positive and distortive effects against each other and assess the legality of public funding.
Regulation
How will companies behave due to regulatory change?
What are the consequences of the current or proposed regulation? We excel in communicating how the underlying economic dynamic affects market behaviour, often in the form of policy recommendations.
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