Big Tech Mergers

• Authors: Martin Peitz and Massimo Motta.
• BSE Working Paper: 110670 | July 20
• Keywords: merger policy, digital markets, potential competition, conglomerate mergers
• JEL codes: L41, L13, K21
• merger policy, digital markets, potential competition, conglomerate mergers

Big tech mergers are frequently occurring events. What are the competitive effects of these mergers? With the help of a simple model we identify the acquisition of potential competitors as a pressing issue for merger control in digital industries. We also sketch a few recent theories of harm of horizontal and conglomerate mergers that are potentially relevant in digital industries. Finally, we draw some policy recommendations on how to deal with mergers in such industries.