Big Tech Mergers

Forthcoming

Authors: Massimo Motta and Martin Peitz

Information Economics and Policy

ig tech mergers are frequently occurring events. What are the competitive effects of these mergers? With the help of a simple model we identify the acquisition of potential competitors as a pressing issue for merger control in digital industries. We also sketch a few recent theories of harm of horizontal and conglomerate mergers that are potentially relevant in digital industries. Finally, we draw some policy recommendations on how to deal with mergers in such industries.

This paper originally appeared as Barcelona GSE Working Paper 1198