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Defining Relevant Markets for Mergers and Acquisitions Involving Communications Services

By  |  January 10, 2014

Posted by Social Science Research Network

Defining Relevant Markets for Mergers and Acquisitions Involving Communications Services – Harold Furchtgott-Roth (Center for the Economics of the Internet, Hudson Institute) and Jeffrey Li (Center for the Economics of the Internet, Hudson Institute)

ABSTRACT: Over the past twenty years, the Federal Communications Commission and the Department of Justice have reviewed many mergers in the communications sector. Without quantitative analyses, the federal agencies have consistently defined unchanging separate relevant markets for wireline and wireless services for antitrust reviews. The agencies have incentives not to change relevant market definitions, although both new technologies and aggregate data likely support new relevant market definitions. A contemporary relevant market definition may include both wireline and wireless services.