Investigating transatlantic merger policy convergence

We propose a framework to examine convergence in the jurisdictional patterns of the American FTC and the European Commission. Based on a sample of 595 merger cases scrutinized by either of these agencies in the 1995-2007 period, we estimate logit models of the probability of intervening in a merger for both jurisdictions and use them to predict the decisions of the respectively other agency. The results point to an increasing harmonization of merger regimes and corroborate the theoretical appraisal that the 2004 reform of EU merger law constituted a step towards the US system.

► Logit models of US and EU merger control jurisdiction are estimated. ► We find a negative time trend in prediction errors, indicating convergence. ► After the 2004 reform of European merger law, the models do not significantly differ.