Response to the UK CMA’s Merger Efficiencies Review

Compass Lexecon experts have submitted their response to the UK Competition and Markets Authority’s (‘CMA’) call for evidence on merger efficiencies. The response examines the CMA’s approach to dynamic efficiencies in particular and proposes an updated framework for incorporating assessment of such efficiencies into the UK merger control process.

The Merger Efficiencies Review examines the CMA’s approach to assessment of rivalry-enhancing efficiencies and forms a part of the CMA’s ongoing programme to improve UK merger control to achieve the ‘4Ps’: pace, predictability, proportionality, and process. The call for evidence formed an initial part of the Merger Efficiencies Review, which will eventually conclude with implementation of changes to the CMA’s approach later in the year.

Our experts provided their views on the CMA’s current approach towards assessing dynamic efficiencies and why an updated framework taking explicit account of specific sources of dynamic efficiencies represents the best framework for achieving the CMA’s aims of the ‘4Ps’.

The submission was authored by Jorge Padilla, Segye Shin and Kristofer Hammarbäck, with comments and inputs from a wider group of Compass Lexecon experts.