The notion of mergers and theory of harm within the telecommunications and pharmaceutical industry under US and EU law : a case of transatlantic divergence or cross-border conformity?

Abstract

Within today’s globalised world, international markets cannot remain detached from one another, particularly since cross-border trade has become the norm for most companies. This shift from a secular national geographic market towards an open international global market has further increased competition across various markets. As firms engaged in cross-border trade and strived to become more efficient and competitive, various business models were employed to reach this end. This has encouraged companies to merge with one another, with the hope that the newly merged entity performs better within its relevant market.

This term paper starts by focusing on the various specifications and characteristics of the US’ and EU’s merger regulatory framework, including the legislation and guidelines being employed by the different competition authorities and agencies. This analysis is followed up by a comparative analysis between both regulatory systems. The subsequent section of the term paper moves on to discuss the main theories of harm within the telecommunications and pharmaceutical industry, while at the same time investigating if these are shared concerns between both regimes or rather a unilateral out look.