International Competition Network Adopts Recommended Practices to Improve Merger Analysis

At the ninth annual International Competition Network conference in Istanbul, Turkey, the ICN adopted Recommended Practices for substantive merger analysis, approved a pilot project for a virtual university on competition law and practice, and held discussions about the analysis of refusal to deal and margin squeeze conduct under unilateral conduct laws.

Other important developments of the conference were based on the work of the Merger Working Group, co-chaired by the Antitrust Division and the Irish Competition Authority. During the conference, ICN members adopted two detailed Recommended Practices for Merger Analysis. The new Recommended Practices for merger analysis address:

Market Definition in Merger Review. Agencies should address the competitive effects of a merger within economically meaningful markets. The hypothetical monopolist test is an appropriate test to determine the relevant market(s) in which to analyze the competitive effects of a merger.

Failing Firm/Exiting Assets Analysis. Agencies should carefully review claims by the merging parties that a merger will not harm competition because the acquired firm and its assets would have exited the market absent the merger in any event.