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Ex-post Analysis of Mobile Telecom Mergers: The Case of Austria and The Netherlands

Author

Listed:
  • Luca Aguzzoni

    (European Commission, DG Competition)

  • Benno Buehler

    (European Commission, DG Competition)

  • Luca Martile

    (European Commission, DG Competition)

  • Ron Kemp

    (Netherlands Authority for Consumers and Markets
    Erasmus University Rotterdam)

  • Anton Schwarz

    (Austrian Regulatory Authority for Broadcasting and Telecommunications)

Abstract

Recently there has been an increased attention towards the ex-post evaluation of competition policy enforcement decisions and in particular merger decisions. In this paper we study the effects of two mobile telecommunication mergers on prices. We apply a standard difference-in-differences approach which is widely used in the literature on ex-post evaluation of mergers. For the Austrian T-Mobile/tele.ring merger, we conclude that after the acquisition (for which remedies were imposed) prices in Austria did not increase relative to the considered control countries. For the Dutch T-Mobile/Orange merger, we observe an increase in the mobile tariff prices in the Netherlands in the analysed period, relative to the control countries. We cannot firmly establish whether this price increase was exclusively caused by the T-Mobile/Orange merger or in part by possible price effects brought about by the KPN/Telfort merger consummated two years earlier in the Netherlands. However, we believe that such price increase could be linked to the structural changes brought by both KPN/Telfort and T-Mobile/Orange mergers together.

Suggested Citation

  • Luca Aguzzoni & Benno Buehler & Luca Martile & Ron Kemp & Anton Schwarz, 2018. "Ex-post Analysis of Mobile Telecom Mergers: The Case of Austria and The Netherlands," De Economist, Springer, vol. 166(1), pages 63-87, March.
    • Handle: RePEc:kap:decono:v:166:y:2018:i:1:d:10.1007_s10645-017-9308-5
    DOI: 10.1007/s10645-017-9308-5
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    References listed on IDEAS

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    Cited by:

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    2. Aimene, Louise & Jeanjean, François & Liang, Julienne, 2021. "Impact of mobile operator consolidation on unit prices," Telecommunications Policy, Elsevier, vol. 45(4).
    3. Wellmann, Nicolas, 2019. "Hello . . . Are You Still There? An Empirical Analysis How Market Structure Affects Quality of Mobile Networks," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203579, Verein für Socialpolitik / German Economic Association.
    4. Bahia, Kalvin & Castells, Pau, 2022. "The dynamic effects of competition on investment: the case of the European mobile communications industry," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265614, International Telecommunications Society (ITS).
    5. Brito, Duarte & Vasconcelos, Helder, 2023. "Competitive effects of mergers and of spectrum divestment remedies in mobile telecommunication markets," Telecommunications Policy, Elsevier, vol. 47(10).
    6. Norbert Maier & Julie Runge Jørgensen & Asger Lunde & Otto Toivanen, 2021. "Ex-post Analysis of the TeliaSonera-Chess 2005 Merger," De Economist, Springer, vol. 169(2), pages 141-178, May.

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    More about this item

    Keywords

    Competition law enforcement; Merger control; Ex-post studies; Telecommunications;
    All these keywords.

    JEL classification:

    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • K29 - Law and Economics - - Regulation and Business Law - - - Other
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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