CONGLOMERATE MERGER CONTROL: FROM THE CONTINENTS TO A SMALL ECONOMY

Abstract

To condemn a conglomerate merger for the foreclosure effect of post-merger activities, one should examine the anticipated conduct against the same liability rules under the law of agreement and the law of abuse of dominance as if the conduct has been materialized. Given the inherent uncertainty of pre-merger assessment, it requires a high standard of proof to satisfy the adjudicator that the merger in question would lead to anticompetitive effect in all the circumstances. Conglomerate merger, which will reinforce market concentration or increase entry barriers, should be stringently scrutinized. Saying so, the pro-efficiency effects of conglomerate merger are appreciated. One should not take it for granted that agglomeration will be restrained through conglomerate merger control.

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