IDEAS home Printed from https://ideas.repec.org/a/bla/jcmkts/v59y2021i4p762-781.html
   My bibliography  Save this article

Bureaucrats or Ideologues? EU Merger Control as Market‐centred Integration

Author

Listed:
  • Sebastian Billows
  • Sebastian Kohl
  • Fabien Tarissan

Abstract

Since 1989, no major European merger has been able to go through without EU approval. The introduction of a centralized merger control procedure was another increase in the powers of the Commission's Directorate‐General for Competition (DG COMP). While some see it playing a neo‐mercantilist role in a positive European integration, others underline its neoliberal ideological roots. Through our analysis of all merger decisions made between 1990 and 2016 (6,161 cases), we instead find evidence for market‐centred negative integration: DG COMP is particularly harsh towards coordinated market economies and targets sectors that have high levels of state intervention, thus thwarting the rise of ‘European champions’. Our interviews with merger experts and the decision citation data further suggest that this market‐centred logic of enforcement is not necessarily driven by ideology, but by the silent logic of bureaucratic autonomy. We thus contribute to the debate on the EU as a supranational force of economic liberalization.

Suggested Citation

  • Sebastian Billows & Sebastian Kohl & Fabien Tarissan, 2021. "Bureaucrats or Ideologues? EU Merger Control as Market‐centred Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 59(4), pages 762-781, July.
  • Handle: RePEc:bla:jcmkts:v:59:y:2021:i:4:p:762-781
    DOI: 10.1111/jcms.13130
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jcms.13130
    Download Restriction: no

    File URL: https://libkey.io/10.1111/jcms.13130?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nicolas Coeurdacier & Roberto A. De Santis & Antonin Aviat, 2009. "Cross-border mergers and acquisitions and European integration [‘Capital flows in a globalised world: The role of policies and institutions’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 24(57), pages 56-106.
    2. Martin Feldstein, 1997. "The Political Economy of the European Economic and Monetary Union: Political Sources of an Economic Liability," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 23-42, Fall.
    3. King, Gary & Zeng, Langche, 2001. "Logistic Regression in Rare Events Data," Political Analysis, Cambridge University Press, vol. 9(2), pages 137-163, January.
    4. Marie-Laure Salles-Djelic, 2006. "Marketization: From Intellectual Agenda to Global Policy Making," Post-Print hal-01891997, HAL.
    5. Hall, Peter A. & Gingerich, Daniel W., 2009. "Varieties of Capitalism and Institutional Complementarities in the Political Economy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 39(3), pages 449-482, July.
    6. Cavalleri, Maria Chiara & Eliet, Alice & McAdam, Peter & Petroulakis, Filippos & Soares, Ana & Vansteenkiste, Isabel, 2019. "Concentration, market power and dynamism in the euro area," Working Paper Series 2253, European Central Bank.
    7. Mark Glick, 2019. "Antitrust and Economic History: The Historic Failure of the Chicago School of Antitrust," Working Papers Series 95, Institute for New Economic Thinking.
    8. Henk-Jan Brinkman, 1999. "Explaining Prices in the Global Economy," Books, Edward Elgar Publishing, number 1724, December.
    9. Jens Hölscher & Nicole Nulsch & Johannes Stephan, 2017. "State Aid in the New EU Member States," Journal of Common Market Studies, Wiley Blackwell, vol. 55(4), pages 779-797, July.
    10. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g70aj72cl is not listed on IDEAS
    11. Tsebelis, George & Garrett, Geoffrey, 2001. "The Institutional Foundations of Intergovernmentalism and Supranationalism in the European Union," International Organization, Cambridge University Press, vol. 55(2), pages 357-390, April.
    12. Michael H. Böheim & Klaus S. Friesenbichler, 2016. "Exporting the Competition Policy Regime of the European Union: Success or Failure? Empirical Evidence for Acceding Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 54(3), pages 569-582, May.
    13. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g70aj72cl is not listed on IDEAS
    14. Thatcher, Mark, 2014. "European Commission merger control: combining competition and the creation of larger European firms," LSE Research Online Documents on Economics 54743, London School of Economics and Political Science, LSE Library.
    15. Jens Hölscher & Johannes Stephan, 2009. "Competition and Antitrust Policy in the Enlarged European Union: A Level Playing Field?," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 863-889, September.
    16. Thatcher, Mark, 2014. "From old to new industrial policy via economic regulation," LSE Research Online Documents on Economics 62279, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. N. N., 2019. "WIFO-Monatsberichte, Heft 12/2019," WIFO Monatsberichte (monthly reports), WIFO, vol. 92(12), December.
    2. Dmytro Osiichuk & Paweł Wnuczak, 2023. "Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?," SAGE Open, , vol. 13(4), pages 21582440231, December.
    3. Klaus Regling & Servaas Deroose & Reinhard Felke & Paul Kutos, 2010. "The Euro After Its First Decade : Weathering the Financial Storm and Enlarging the Euro Area," Governance Working Papers 22817, East Asian Bureau of Economic Research.
    4. Klaus S. Friesenbichler & Agnes Kuegler & Andreas Reinstaller, 2021. "Does value chain integration dampen producer price developments? Evidence from the European Union," The World Economy, Wiley Blackwell, vol. 44(1), pages 89-106, January.
    5. de Jong, Gjalt & Phan, T. Binh & van Ees, Hans, 2011. "Does the meta-environment determine firm performance? Theory and evidence from European multinational enterprises," International Business Review, Elsevier, vol. 20(4), pages 454-465, August.
    6. Popov, Alexander A. & Steininger, Lea, 2023. "Monetary Policy and Local Industry Structure," Department of Economics Working Paper Series 333, WU Vienna University of Economics and Business.
    7. Karolyi, G. Andrew & Liao, Rose C., 2017. "State capitalism's global reach: Evidence from foreign acquisitions by state-owned companies," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 367-391.
    8. Agnes Kügler & Klaus Friesenbichler & Cornelius Hirsch, 2024. "Labour Market Effects of Trade in a Small Open Economy," REGION, European Regional Science Association, vol. 11, pages 1-26.
    9. Klaus S. Friesenbichler & Michael Böheim & Michael Peneder, 2019. "Die Effekte der EU-Osterweiterung in den Beitrittsländern. Evidenz auf Länder- und auf Unternehmensebene," WIFO Monatsberichte (monthly reports), WIFO, vol. 92(12), pages 907-918, December.
    10. Klaus S. Friesenbichler, 2020. "Does EU-accession affect domestic market structures and firm level productivity?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 343-364, May.
    11. Regling, Klaus & Deroose, Servaas & Felke, Reinhard & Kutos, Paul, 2010. "The Euro After Its First Decade: Weathering the Financial Storm and Enlarging the Euro Area," ADBI Working Papers 205, Asian Development Bank Institute.
    12. Kamini Gupta & Donal Crilly & Thomas Greckhamer, 2020. "Stakeholder engagement strategies, national institutions, and firm performance: A configurational perspective," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1869-1900, October.
    13. Xi Yang, 2016. "Predicting bank failures: The leverage versus the risk-weighted capital ratio," Working Papers hal-04141595, HAL.
    14. Xi Yang, 2016. "Predicting bank failures: The leverage versus the risk-weighted capital ratio," EconomiX Working Papers 2016-15, University of Paris Nanterre, EconomiX.
    15. Bernhard Ebbinghaus & J. Timo Weishaupt, 2022. "Readjusting unemployment protection in Europe: how crises reshape varieties of labour market regimes," Transfer: European Review of Labour and Research, , vol. 28(2), pages 181-194, May.
    16. J.J. Prescott & Kathryn E. Spier & Albert Yoon, 2014. "Trial and Settlement: A Study of High-Low Agreements," NBER Working Papers 19873, National Bureau of Economic Research, Inc.
    17. Christian Hopp & Christian Lukas, 2014. "A Signaling Perspective on Partner Selection in Venture Capital Syndicates," Entrepreneurship Theory and Practice, , vol. 38(3), pages 635-670, May.
    18. Lukáš Čechura & Tinoush Jamali Jaghdani, 2021. "Market Imperfections within the European Wheat Value Chain: The Case of France and the United Kingdom," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    19. Brigitte Granville & Jaume Martorell Cruz & Martha Prevezer, 2015. "Elites, Thickets and Institutions: French Resistance versus German Adaptation to Economic Change, 1945-2015," Working Papers 63, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    20. Parsley, David & Wei, Shang-Jin, 2008. "In search of a euro effect: Big lessons from a Big Mac Meal?," Journal of International Money and Finance, Elsevier, vol. 27(2), pages 260-276, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jcmkts:v:59:y:2021:i:4:p:762-781. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-9886 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.