International Merger Policy

International Merger Policy

Applying Domestic Law to International Markets

Julie Clarke

International Merger Policy offers a compelling comparative assessment of domestic and regional merger laws and procedures. Identifying important areas of convergence and emerging best practice, it considers existing levels of international cooperation and identifies the key costs associated with transnational merger review before evaluating possible mechanisms by which they might be reduced.

Chapter 8: The cost of transnational merger regulation

Julie Clarke

Subjects: economics and finance, money and banking, law - academic, competition and antitrust law


Despite increased levels of cooperation, particularly between countries enjoying close bilateral ties, and growing convergence facilitated by the development of best practice recommendations, significant differences remain between national merger control regimes and the analytical approaches taken by regulators to their enforcement. As a result, the unilateral extraterritorial applicationof national laws to trans-national mergers continues to impose significant costs on merging parties, competition authorities and society at large. It has also made merger review less predictable. As merger activity becomes more frequent and increasingly transnational and more nations adopt merger regimes, this cost will, in the absence of any meaningful reforms, continue to rise. Previous chapters have considered in some depth the benefits associated with the detection and prevention of anti-competitive mergers and the processes employed to achieve this goal. They have also examined some of the costs associated with national merger laws and processes and their extraterritorial application. Despite the cost, the regulation of mergers through PMN, whether mandatory or voluntary, remains the most appropriate way of achieving the goal of enhancing and maintaining modern consumer welfare and that the extraterritorial application of substantive merger laws, based on local economic impact, is an appropriate, and at times necessary, mechanism for furthering this goal.

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