CRA’s Dr. Alex Arsenault recently submitted comments to the Canadian Competition Bureau’s review of Merger Enforcement Guidelines (MEGs). Dr. Arsenault’s comments assess the importance of algorithms in merger review, and more specifically, how the proliferation of algorithmic pricing and decision-making by market participants has introduced new dynamics to the merger review process.
Dr. Arsenault notes that the Bureau should consider how algorithmic pricing could lead to misleading conclusions during merger reviews, as well as how algorithms can affect the definition of relevant markets, altering traditional boundaries and competitive landscapes.
To navigate the complexities presented by the application of algorithms to merger review, Dr. Arsenault offers a framework to address common issues that may arise when analyzing mergers in the context of algorithmic usage.
Please click here to read the full comments.