Application of Economic and Quantitative Tools for Merger Analysis in India

AuthorNeha Malhotra Singh,Ramji Tamarappoo
Date01 June 2021
DOI10.1177/0003603X21997024
Published date01 June 2021
Article
Application of Economic
and Quantitative Tools
for Merger Analysis in India
Ramji Tamarappoo*,** and Neha Malhotra Singh***
Abstract
This article assesses how the use of economic analysis and quantitative tools has evolved in merger
assessments in India and draws a comparison with practices in two of the advanced jurisdictions, the
United States and the European Union. In addition, this article identifies the trends and the gaps that
still persist in India, in terms of the adoption of analytical approaches in merger analysis.
Keywords
antitrust law, regulation, monopolization
Merger analysis is an ex ante assessment of the impact of a proposed combination on the competitive
process and consumer welfare. While on the one hand, competition authorities must ensure that they
do not stop a combination that could result inefficiencies that are likely to ultimately benefit the
consumers, they have to do so keeping in mind that a combination cannot be unscrambled if a wrong
decision is made. Therefore, the ideal approach for competition authorities is to focus on the
anticipated effects of a proposed combination in a careful, balanced, and robust manner and
aim to address the question: “What is the market going to look like when the combination is
implemented?”
Competition law jurisdictions around the world have considered and adopted—to varying
degrees—analytical approaches and tools to determine the positive and adverse effects of a combi-
nation on competition (commonly referred to as an effects-based approach) rather than a
“tick-the-box” approach (referred to as a form-based approach). These tools have been used to define
relevant markets, to assess pre- and postcombination concentration and market power, and the possible
effect on prices.
* Nathan Associates Inc, Arlington, USA
** Nathan Economic Consulting India Private Limited, Chennai, India
*** Independent Economist
Corresponding Author:
Neha Malhotra Singh, 1028, Sector A, Pocket C, Vasant Kunj, New Delhi 110070, India.
Email: neha.economist@gmail.com.
The Antitrust Bulletin
2021, Vol. 66(2) 225–235
ªThe Author(s) 2021
Article reuse guidelines:
sagepub.com/journals-permissions
DOI: 10.1177/0003603X21997024
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