Analysis of Conglomerate Mergers and Competition Concerns in Recent Cases
The analysis delves into the increasing trend of conglomerate mergers and potential competition issues in recent cases like Qualcomm/NXP, Luxottica/Essilor, and Bayer/Monsanto. It examines bundling strategies, interoperability challenges, and leveraging of data to understand the impact on market competition and consumer choice.
- Conglomerate mergers
- Competition concerns
- Bundling strategies
- Interoperability challenges
- Market competition
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Presentation Transcript
But once you said you were ok with this Are conglomerate mergers becoming a problem? Luca Crocco Avvocato (Salerno) - Latham & Watkins LLP, Brussels
2017: the year of conglomerate effects? Currently in Phase II: Qualcomm/NXP: two different bundling theories (third ToH seems like a filler ) Luxottica/Essilor: classic bundling is the only ToH (no interoperability) Bayer/Monsanto: bundling is one of the concerns (but three horizontal ToH)
I am pretty sure you said you were ok with this GE/Honeywell and Tetra Laval/Sidel prohibitions based (mainly) on conglomerate issues Annulled by GC in 2003 and 2005 - bar for conglomerate theories of harm set very high EC s Non-Horizontal Merger Guidelines (2008) in the majority of circumstances [ ] no competition problems in certain specific cases there may be harm to competition. In short: bundling is rarely a structural issue, Article 102 can deal with future conduct
Well, I tried to tell you but you did not listen Warning shot: Intel/McAfee Phase I conditional clearance in 2011 It all goes quiet until March 2016, when, in close succession: Dentsply/Sirona Phase I conditional clearance Worldline/Equens/Paysquare - Phase I conditional clearance Microsoft/LinkedIn - Phase I conditional clearance Broadcom/Brocade Phase I conditional clearance
What are you trying to tell me? Dentsply/Sirona: equipment and consumable (degradation of interoperability) Worldline/Equens: software and machine (bundling) Microsoft/LinkedIn: operating system and App (interoperability/pre-installation) Broadcom/Brocade: switch chip and interface card (degradation of interoperability) Luxottica/Essilor: eyewear and ophthalmic lenses (bundling) Bayer/Monsanto: pesticides and seeds (bundling and leveraging of data) Qualcomm/NXP: baseband chipsets and NFC/SEs IC; NFC IP and Qualcomm s IP (bundling)
What? A coincidence?! Not a coincidence: 4 conditional Phase I and three Phase II in 18 months Substantive and procedural causes Substantive: focus on preserving customer choice e.g. degradation of interoperability Procedural: Difficulty in processing well timed (as soon as the clock starts ) complaints Is pre-notification effective? Fear of litigation Unlikely to go away in the near term prepare for more conglomerate fun!
