DP14353 Big Tech Mergers

Author(s): Massimo Motta, Martin Peitz
Publication Date: January 2020
Keyword(s): Acquisitions, Antitrust, competition policy, Digital Markets, platforms
JEL(s):
Programme Areas: Industrial Organization
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=14353

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 novel 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.