Application of Economic and Quantitative Tools for Merger Analysis in India

• Author: Neha Malhotra Singh,Ramji Tamarappoo
• DOI: 10.1177/0003603X21997024
• Published date: 01 June 2021
• Date: 01 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

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DOI: 10.1177/0003603X21997024

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