Dynamic Competition, Price Frictions and Institution Building: the CMA in 2022–2023

This article discusses three projects of economic significance that the Competition and Markets Authority (CMA) completed in the last year: First, we discuss the dynamic competition concerns that were at the heart of the CMA’s analysis of the Meta/GIPHY merger; this was the first case of a competiti...

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Bibliographic Details
Published in:Review of industrial organization 2023-12, Vol.63 (4), p.501-523
Main Authors: Bon, Julie, Love, Alistair, McNaboe, Alan, Njegovan, Nenad, Schneebacher, Jakob, Walker, Mike
Format: Article
Language:English
Subjects:
Acquisitions & mergers
Advertising
Authority
Blocking
Competition
Economics
Economics and Finance
Industrial Organization
Innovations
Institution building
Markets
Microeconomics
Prices
Productivity
Profits
Social networks
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Summary:This article discusses three projects of economic significance that the Competition and Markets Authority (CMA) completed in the last year: First, we discuss the dynamic competition concerns that were at the heart of the CMA’s analysis of the Meta/GIPHY merger; this was the first case of a competition authority’s blocking an acquisition by one of the ‘Big Tech’ firms. Second, our work on the road fuels market study examined pricing behaviour in an important consumer-facing market and found that competition had weakened because historic price leaders have been taking a less aggressive approach to pricing, Third, we established a new research centre—the Microeconomics Unit—to bring economic expertise on competition, innovation, and productivity closer to regulatory and policy decisions.
ISSN:0889-938X
1573-7160
DOI:10.1007/s11151-023-09934-w