CRA economists Serge Moresi and Alessandro Kadner-Graziano commented on the non-horizontal merger section (Part 11) of the Competition Bureau’s Merger Enforcement Guidelines. These comments follow a public consultation by the Bureau, which seeks to update its guidelines.
Dr. Moresi and Dr. Kadner-Graziano commented on vertical mergers. They suggest including an additional potential harm from vertical mergers (the stakeholder effect). They also suggest mentioning a new tool to assess the ability of the merged entity to foreclose rivals (the margin test) and an existing tool to gauge the incentive of the merged entity to raise rivals’ costs (the vGUPPI). The comments respond to questions 10.b and 10.c of the Bureau’s public consultation.
Please click here to read the full comments.
