The European Commission approves a merger to nearly monopoly with a questionable theory of harm and novel behavioural remedy (Friesland Foods / Campina)

Key Facts Of The Case Campina and Friesland Foods are the two largest dairy cooperatives in the Netherlands. Between them, prior to the merger, they produced 70% to 80% of all the raw milk procured in the Netherlands. In addition the firms processed the milk into fresh milk for drinking as well as many different dairy products which are sold to final consumers by, typically, supermarkets. Between them the parties supplied 60% to 70% of all the fresh milk sold in the Netherlands. Had this merger been allowed without any remedies it would be a merger to near monopoly. DG Comp used an econometric analysis, unprecedented in its detail and scope, to identify problems in almost all dairy related markets across three countries (The Netherlands, Belgium and Germany). But the economic theory

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John Thanassoulis, The European Commission approves a merger to nearly monopoly with a questionable theory of harm and novel behavioural remedy (Friesland Foods / Campina), 17 December 2008, e-Competitions Bulletin Buyer power in mergers, Art. N° 38048

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