LAW AND ECONOMY: LOCAL MERGERS - COMPETITIVE PROXIMITY - SCORES METHOD

The scores method: When the Competition Authority innovates in the local competitive pressure’s evaluation in merger control

This article deals with the weighted share of stores method, a new tool in merger control developed by the Competition & Markets Authority and recently employed by the French Competition Authority. After a summary of its framework and features, the authors review the two competition authorities’ differing implementations. Lastly, the questions raised by their heterogeneous approaches are addressed and several hints for future use are proposed.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. In its Fnac/Darty decision of 26 July 2016 [1], the Competition Authority (hereinafter 'the Authority') used a new methodology, based on certain precedents applied by the Competition and Markets Authority (hereinafter 'the CMA') [2], to assess the intensity of local competition in the context of mergers. This new method, referred to in the Authority's decision as the 'scores' method, provides additional insight into the calculation of market shares, which, according to the Authority, remain reliable indicators of the market positions of competitors and in particular of the merged entity. This new method makes it possible to take a more quantitative view

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Federico Agnoletto, Hélène Bourguignon, The scores method: When the Competition Authority innovates in the local competitive pressure’s evaluation in merger control, September 2017, Concurrences N° 3-2017, Art. N° 84397, pp.42-29

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