Antitrust Chronicle – Rethinking Vertical Mergers

Antitrust Chronicle – Rethinking Vertical Mergers

Dear Readers, The August 2018 CPI Antitrust Chronicle features articles on a topic that has been all over the news recently: vertical mergers. The recent District Court decision in the AT&T/Time Warner merger has opened a Pandora’s Box of antitrust discussions. This seems understandable seeing that the case is the first government action to block […]

Kabuki Dances or Rube Goldberg Machines? Vertical Analyses of Media Mergers

Kabuki Dances or Rube Goldberg Machines? Vertical Analyses of Media Mergers

By Cristina Caffarra, Gregory S. Crawford & Helen Weeds –  In his recent opinion in the AT&T/Time Warner merger, Judge Richard Leon described the bargaining models presented by the government as a “Kabuki Dance” and a “Rube Goldberg Machine.” We summarize key considerations in recent vertical media mergers in the U.S. and EU and show […]

The District Court’s AT&T/Time Warner Decision: Insights into the Law of Vertical Integration

The District Court’s AT&T/Time Warner Decision: Insights into the Law of Vertical Integration

By Christopher S. Yoo –  The U.S. District Court’s opinion unconditionally approving AT&T’s acquisition of Time Warner is often mistakenly regarded as the mere application of settled law to a particular case. A close reading of the decision yields insights in five areas: (1) what constitutes must-have content; (2) the importance of focusing exclusively on […]

Vertical Mergers and the MFN Thicket in Television

Vertical Mergers and the MFN Thicket in Television

By Erik Hovenkamp & Neel U. Sukhatme –  Increasingly, cable and satellite TV services (known as “MVPDs”) seek to acquire upstream programming creators, as illustrated by AT&T’s recent merger with Time-Warner. At the same time, the pay-TV industry is rife with most-favored nation (“MFN”) agreements, which can sharply constrict the competitive process. The most problematic […]

An Algorithm for Analysis of Vertical Concerns

An Algorithm for Analysis of Vertical Concerns

By Malcolm B. Coate –  Vertical analysis may play an important role in antitrust policy for Internet-related markets. As anticompetitive effects are horizontal in nature, this paper proposes a three-step review process, first focusing on the core competitive effect, then the potential for exclusion and finally balancing of efficiencies and anticompetitive effects. Two illustrations are […]

Input Foreclosure in Telecoms/Media Vertical Mergers: The MEO/GMC Case

Input Foreclosure in Telecoms/Media Vertical Mergers: The MEO/GMC Case

By Alípio Codinha, Mariana Costa, Marta Ribeiro & Pedro Marques –  This article explores part of the competitive assessment performed by the Portuguese Competition Authority on the proposed merger between MEO, a telecoms firm, and GMC, a media & contents company operating in Portugal. We used the same analytical roadmap of the Comcast/NBCU and Liberty […]

The Rediscovery of Vertical Merger Enforcement?

The Rediscovery of Vertical Merger Enforcement?

By Paul Johnson & Anthony Gamble –  Vertical transactions were for a long time a neglected area of merger control. However, with recent changes in the economy and economic theory, competition authorities are rediscovering vertical merger enforcement. This article examines the European Commission’s approach to vertical mergers and the academic and policy debate relating to […]

Implications of the AT&T/Time Warner Decision for Vertical Integration and Media Business Models in the Age of Digitization

Implications of the AT&T/Time Warner Decision for Vertical Integration and Media Business Models in the Age of Digitization

By Kalpana Tyagi –  Technological convergence has had a substantial impact on the way content is generated, distributed and consumed. This in turn has prompted substantial business model innovation and a “wave of creative destruction” in the converged telecoms and media sector. Using inter-disciplinary insights from competition policy and business strategy, particularly business model innovation, […]