A PYMNTS Company

Incentives to Foreclose

By  |  March 12, 2009

The European Commission’s new non-horizontal merger guidelines envisage a three-step approach to assessing the threat of subsequent foreclosure (European Commission. The first step concerns the merged firm’s ability to distort competition and harm rivals on the upstream or downstream market through full- or partial-foreclosure. The second step deals with the integrated firm’s incentives to foreclose; then followed, as a third and final step, by the assessment of potential competitive harm.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In this article, we focus, in particular, on the second screen: the assessment of the incentives of a vertically integrated firm to partially or fully foreclose its rivals. Throughout our analysis, we focus exclusively on input foreclosure.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source