The "more economic approach" in EU merger control: A critical assessment

With the "more economic approach" the EU is taking a new tack on merger control policy. This is visible not only in the new SIEC prohibition criterion and the criteria for appraising horizontal mergers but also in more recent decision-making practice. Greater legal certainty, on the one hand, and improved decision-making, on the other, have been cited as the aims of the (increased) use of industrial economics models and quantitative analysis. The objective of a (better) economic foundation in EU merger control is expressly welcomed. However, on closer analysis it is found that in point of fact the more economic approach in its present form creates less legal certainty, while the upshot in terms of the quality of the decision-making is at least unclear. At the same time, the (administrative) burden is likely to rise. Moreover, certain problems emerge for instance from the increasing involvement of economic experts or the possibilities for (industrial policy-related) political intervention. In conclusion, a broader perception of an economics-based approach which takes account especially of the institutional implications is called for. Specific recommendations are the establishment of an independent competition authority and the stronger orientation of merger control to (more) general rules. --Competition policy,EU merger control,economic analysis

The Oracle/PeopleSoft Case: Unilateral Effects, Simulation Models and Econometrics in Contemporary Merger Control

An increasingly important part of contemporary merger control both in the US and the EU is unilateral effects analysis, particularly with regard to oligopolistic mergers. In practice, this requires econometric analyses of past market data and, above all, the construction of simulation models in order to quantify the price effects in each specific case. The review of the merger between the software firms Oracle and PeopleSoft in 2003/04 has been the most important instance of parallel application of these sophisticated economic tools by the EU and US authorities so far. This makes an in-depth study of the case going from the controversial issue of market definition to the specificities of the competitive assessment worthwhile. Therefore, we highlight certain similarities as well as (minor) differences between the EU and US proceedings. Interestingly, despite serious initial concerns the transaction was not blocked nor even required to be modified in the two jurisdictions. We derive a number of interesting insights and, in particular, point out problems and lessons associated with the use of sophisticated economic tools in contemporary merger control. In addition to case-specific factors, the major insights encompass the continued relevance of market definition, the need to accompany predictive economic evidence with compatible reasoning and the benefits of including the economics of dynamic and evolutionary competition.Merger control, unilateral effects, econometric analysis, simulation models, market definition

The Oracle/PeopleSoft case: unilateral effects, simulation models and econometrics in contemporary merger control

An increasingly important part of contemporary merger control both in the US and the EU is unilateral effects analysis, particularly with regard to oligopolistic mergers. In practice, this requires econometric analyses of past market data and, above all, the construction of simulation models in order to quantify the price effects in each specific case. The review of the merger between the software firms Oracle and PeopleSoft in 2003/04 has been the most important instance of parallel application of these sophisticated economic tools by the EU and US authorities so far. This makes an in-depth study of the case going from the controversial issue of market definition to the specificities of the competitive assessment worthwhile. Therefore, we highlight certain similarities as well as (minor) differences between the EU and US proceedings. Interestingly, despite serious initial concerns the transaction was not blocked nor even required to be modified in the any of the two jurisdictions. We derive a number of interesting insights and, in particular, point out problems and lessons associated with the use of sophisticated economic tools in contemporary merger control. In addition to case-specific factors, the major insights encompass the continued relevance of market definition, the need to accompany predictive economic evidence with compatible reasoning and the benefits of including the economics of dynamic and evolutionary competition. --Merger control,unilateral effects,econometric analysis,simulation models,market definition

Competition Policy with Optimally Differentiated Rules Instead of "Per se Rules vs. Rule of Reason"

Abstract: Both in US antitrust and EU competition policy a development to a broader appli-cation of rule of reason instead of per se rules can be observed. In the European discussion the attempt to base competition policy on a "more economic approach" is mainly viewed as im-proving the economic analysis in the assessment of specific cases. In this paper it is shown from a general law and economics perspective that the application of rules instead of focus-sing on case-by-case analyses can have many advantages (less regulation costs, rent seeking and knowledge problems), although an additional differentiation of rules through a deeper assessment can also have advantages in regard to the reduction of decision errors of type I and II. After introducing the notion of a continuum of more or less differentiated rules, we show - based upon law and economics literature upon the optimal complexity of rules - in a simple model that a competition rule is optimally differentiated, if the marginal reduction of the sum of error costs (as the marginal benefit of differentiation) equals the marginal costs of differen-tiation. This model also allows for a more detailed analysis of the most important determi-nants of the optimal degree of rule-differentia¬tion. From this law and economics perspective, competition policy should consist mainly of (more or less differentiated) rules and should only rarely rely on case-by-case analysis. Therefore the main task of a "more economic ap-proach" is to use economics for the formulation of appropriate competition rules.Competition Policy, European Competition Law, Rule of Reason

Effects of water and fluorine on the viscosity of albite melt at high pressure: a preliminary investigation

The viscosities of fluorine- and water-bearing melts based on albite composition have been determined at 7.5, 15 and 22.5 kbar by the falling-sphere method. All melt viscosities decrease isothermally with increasing pressure. At 1200°C the viscosity of the fluorine-bearing melt (albite + 5.8 wt.% fluorine substituted for oxygen, denoted AbF2O−1) decreases from5000 ± 750P at7.5kbar to1600 ± 240P at22.5kbar. At 1400°C the viscosity of this melt decreases from1300 ± 200P at7.5kbar to430 ± 65P at22.5kbar. At 1400°C the viscosity of albite + 2.79 wt.% water (denoted AbH2O) decreases from650 ± 100P at7.5kbar to400 ± 60P at22.5kbar. Fluorine (as F2O−1) and water strongly decrease the viscosity of albite melt over the entire range of investigated pressures. The ratio of the effects of 5.8 wt.% fluorine [F/(F + O)molar = 0.10] and 2.79 wt.% water [OH/(OH + O)molar = 0.10] on the log of melt viscosity [Δ log η(AbF2O−1)/Δ log η(AbH2O)] equals0.90 ± 0.05, 0.84 ± 0.05and0.97 ± 0.05at7.5, 15and22.5kbar, respectively. Comparison with available data on the high-pressure viscosity of albite melt indicates that both F2O−1 and H2O maintain their viscosity-reducing roles to lower crustal pressures. The difference between the viscosities of melts of albite, AbF2O−1 and AbH2O, may be explained in terms of the relatively depolymerized structures of AbF2O−1 and AbH2O melts. The depolymerization of albite melt by the addition of water results from the formation of SiOH bonds. The depolymerization of albite melt by F2O−1 substitution results from the formation of non-bridging oxygens associated with network-modifying aluminum cations that are formed upon fluorine solution. The strong viscosity-reducing effects of water and fluorine in albite melt at pressures corresponding to the mid- to lower continental crust indicate that these two components will strongly influence the dynamic behavior of anatectic melts during initial magma coalescence and restite-melt segregation

Forest microclimates and climate change: importance, drivers and future research agenda

Forest microclimates contrast strongly with the climate outside forests. To fully understand and better predict how forests' biodiversity and functions relate to climate and climate change, microclimates need to be integrated into ecological research. Despite the potentially broad impact of microclimates on the response of forest ecosystems to global change, our understanding of how microclimates within and below tree canopies modulate biotic responses to global change at the species, community and ecosystem level is still limited. Here, we review how spatial and temporal variation in forest microclimates result from an interplay of forest features, local water balance, topography and landscape composition. We first stress and exemplify the importance of considering forest microclimates to understand variation in biodiversity and ecosystem functions across forest landscapes. Next, we explain how macroclimate warming (of the free atmosphere) can affect microclimates, and vice versa, via interactions with land-use changes across different biomes. Finally, we perform a priority ranking of future research avenues at the interface of microclimate ecology and global change biology, with a specific focus on three key themes: (1) disentangling the abiotic and biotic drivers and feedbacks of forest microclimates; (2) global and regional mapping and predictions of forest microclimates; and (3) the impacts of microclimate on forest biodiversity and ecosystem functioning in the face of climate change. The availability of microclimatic data will significantly increase in the coming decades, characterizing climate variability at unprecedented spatial and temporal scales relevant to biological processes in forests. This will revolutionize our understanding of the dynamics, drivers and implications of forest microclimates on biodiversity and ecological functions, and the impacts of global changes. In order to support the sustainable use of forests and to secure their biodiversity and ecosystem services for future generations, microclimates cannot be ignored.Peer reviewe

Highly refractory Archaean peridotite cumulates: Petrology and geochemistry of the Seqi Ultramafic Complex, SW Greenland

This paper investigates the petrogenesis of the Seqi Ultramafic Complex, which covers a total area of approximately 0.5 km2. The ultramafic rocks are hosted by tonalitic orthogneiss of the ca. 3000 Ma Akia terrane with crosscutting granitoid sheets providing an absolute minimum age of 2978 ± 8 Ma for the Seqi Ultramafic Complex. The Seqi rocks represent a broad range of olivine-dominated plutonic rocks with varying modal amounts of chromite, orthopyroxene and amphibole, i.e. various types of dunite (s.s.), peridotite (s.l.), as well as chromitite. The Seqi Ultramafic Complex is characterised primarily by refractory dunite, with highly forsteritic olivine with core compositions having Mg# ranging from about 91 to 93. The overall high modal contents, as well as the specific compositions, of chromite rule out that these rocks represent a fragment of Earth’s mantle. The occurrence of stratiform chromitite bands in peridotite, thin chromite layers in dunite and poikilitic orthopyroxene in peridotite instead supports the interpretation that the Seqi Ultramafic Complex represents the remnant of a fragmented layered complex or a magma conduit, which was subsequently broken up and entrained during the formation of the regional continental crust. Integrating all of the characteristics of the Seqi Ultramafic Complex points to formation of these highly refractory peridotites from an extremely magnesian (Mg# ~ 80), near-anhydrous magma, as olivine-dominated cumulates with high modal contents of chromite. It is noted that the Seqi cumulates were derived from a mantle source by extreme degrees of partial melting (>40%). This mantle source could potentially represent the precursor for the sub-continental lithospheric mantle (SCLM) in this region, which has previously been shown to be ultra-depleted. The Seqi Ultramafic Complex, as well as similar peridotite bodies in the Fiskefjord region, may thus constitute the earliest cumulates that formed during the large-scale melting event(s), which resulted in the ultra depleted cratonic keel under the North Atlantic Craton. Hence, a better understanding of such Archaean ultramafic complexes may provide constraints on the geodynamic setting of Earth’s first continents and the corresponding SCLM.Department of Geological Sciences, Stanford University, 450 Serra Mall, Stanford, CA 94305, USA Department of Earth & Planetary Sciences, McGill University, Quebec, Canada Department of Geology, Lund University, Sölvegatan 12, 223 62 Lund, Sweden School of Earth and Ocean Sciences, Cardiff University, Main Building, Cardiff CF10 3AT, United Kingdom College of Science, University of Derby, Derby, DE22 1GB, U