Faculty of Economics and Business Administration Publications Database

Can the SIEC test be used to assess effects frombuyer power?

Mazzarotto, Nicola
Volume: 8
Number: 3
Pages: 185 - 189
Month: March
Link External Source: Online Version
Year: 2017

Under EU competition law mergers are assessed based on the so-called ‘Significant Impediment to Effective Competition’ (SIEC) test. That test is generally applied to examine market power sellers have towards consumers; but it can also serve to assess the power detained by buyers vis-à-vis suppliers. This however may require adaptations as the economics of both settings are different. In particular, there should be no untested presumption of so-called ‘second round’ effects, according to which increased buyer power of merging firms would also increase buyer power of non-merging firms.