Assignment Task: An Economic Analysis of the proposed merger and conclusions of the CCPC in Case M/21/071 – with respect to Market Definition, Assessment of Market Power, and Merger analysis

*The focus of this assignment is to read the case and to put forward an economic analysis and framework, using economic theory and based on the materials covered in lectures, to establish whether or not the merger in this case would result in a substantial lessening of competition.

To this end, consider the following in your analysis of the proposed merger and the conclusions of the CCPC regarding clearance subject to some legally binding commitments:

• Provide an economic framework and analysis for the definition of the relevant product and geographic markets in this case.

Hence, undertake a critical analysis of the key arguments put forward by the merging parties, as well as the key arguments and conclusions of the CCPC about the proposed merger. (In particular, your answer should consider these arguments from an economic theory perspective).

• Re the relevant product/geographic markets: What does the CCPC focus on in particular and what is the underlying economic rationale? What information/indicators do they draw on in their analysis? Are there any additional indicators/factors/data/models that might also be used to help with defining the relevant markets?
• Provide an economic framework for the Competitive Assessment put forward in the case.

Consider the factors proposed by the CCPC.

Consider any implications of a wider definition of the relevant product/geographic market.

Consider an empirical approach that could be used in assessing market power (and which might also shed some light on defining the relevant market, as considered in part i).