Innovation Competition and Innovation Effects in Horizontal Mergers: Theory and Practice in the United States and European Commission

Abstract

This article discusses the assessment of potential negative effects on innovation in horizontal mergers within the United States and the European Commission Merger Control. It explores the theoretical background and practice. First, the article draws principles from the literature review on propositions to assess innovation competition cases. Second, it presents official documents and literature on the case law to study the jurisdictions’ experiences. In addition, selected case studies are analyzed, establishing connections to the theoretical principles and practice. The case studies include (1) Takeda/Shire (EC-2018), (2) AbbVie/Allergan (EC-2020), and (3) Sabre/Farelogix (DoJ-2019). The article concludes that there have been improvements, particularly in the assessment of overlaps in firms’ capabilities.