The EU Commission blocks a proposed acquisition in the express mail service (UPS / TNT)

Thoughts on the Commission’s Decision in UPS/TNT* My back of the envelope analysis of the Commission’s prohibition decision in UPS/TNT, following yesterday’s GCLC lunch talk. Some facts first - With this decision, the Commission prohibited a merger to duopoly in the express mail business. The Commission found that the merger would have given rise to an overly powerful n°2 – DHL being the leading player – and to the disappearance of a “maverick“, TNT (a so-called “gap case” ). Whilst efficiencies were deemed sufficient to outweigh the restrictive price effects on a number of geographic markets, the balancing test in central and eastern European markets yielded a negative outcome. The parties did not manage to convince the Commission that their “last minute” proposed remedies package

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  • European University Institute (Florence)

Quotation

Nicolas Petit, The EU Commission blocks a proposed acquisition in the express mail service (UPS / TNT), 30 January 2013, e-Competitions January 2013, Art. N° 54691

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