DP14785 Merger Policy in Digital Industries

Author(s): Luís M B Cabral
Publication Date: May 2020
Keyword(s):
JEL(s):
Programme Areas: Industrial Organization
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=14785

I present a cautionary note on the proposal to tighten merger policy in the high-tech space. The discouragement effect on innovation could be significant. This is not to say that increased policy enforcement is not called for. On the contrary. My point is that it should primarily take the form of checking for abuses of dominant position, tightening consumer protection, and directly regulating dominant firms.