Competition authorities are tasked with making markets work, preventing abuse of dominant positions and anti-competitive practices. However, the dividing line between legitimate business conduct and abusive behaviour may be narrow. Many cases turn on fine judgments about how competition works and it is essential to understand the particularities of specific industries and markets.
Economic analysis can make sense of disparate evidence about markets and the players within them. Rigorous modelling of the competitive process is increasingly being used to inform merger analysis and to understand the potential impact of remedies. Statistical and econometric analysis techniques are essential in reaching well-grounded conclusions to the standards required by competition authorities and courts.
DotEcon has advised clients on every side of competition cases: merging companies seeking competition clearance, parties subject to individual or market enquiries, interested third parties and competition authorities themselves.
Our economic consultancy services include:
- market analysis and market definition, including econometric and conjoint analysis of demand and pricing;
- understanding and modelling how competition operates;
- merger analysis and merger impact simulation, including the assessment of potential competition issues at the acquisition due diligence stage;
- identifying market power through market pricing and profitability testing;
- understanding when business practices such as vertical restraints might be anti-competitive; and
- analysing remedies and undertakings.
We have advised clients in many leading domestic and European competition cases. These include high-profile and complex enquiries into payment systems, insurance products and mobile call termination. We have also advised clients in relation to large telecommunications and media mergers. We have particular expertise in the new and growing field of competition policy for network industries and the digital economy. DotEcon has undertaken major research projects for competition authorities, including the European Commission and the UK Office of Fair Trading, on competition policy matters. DotEcon’s research has looked into sectors as varied as the UK’s retail pharmacies market, complex financial derivatives markets and sectors that rely on commission rates (such as estate agency and recruitment agency markets).
Contact us for further information.