Three major state regulators have signed a pact to prevent mergers that harm competition, particularly in the technology sector. Competition watchdogs such as the Australian Competition and Consumer Commission (ACCC), the UK Competition and Markets Authority (CMA) and the Federal Cartel Office (Bundeskartellamt) are working together to support an “effective” merger regime designed to prevent companies from gaining market power through takeovers. For the three regulators, the way forward would be to establish effective merger control, which is essential for competitive markets in a free market economy.
A statement from these competition authorities states: “The purpose of merger control is to ensure that relevant transactions are assessed, and anticompetitive mergers are prevented so that consumers benefit from the lower prices, higher quality products, and services, greater choice and innovation that effective competition brings. Without strong merger control regimes, there is a risk that mergers will proceed that lessen the level of competition by weakening competitive constraints and in some cases strengthening dominant positions.”
For more information, read the original story in ZDNET