Frontier Economics

Frontier Publications

Keep 'em un-coordinated

Coordinated effects in mergers

This bulletin from Frontier (Australia) examines the increasing emphasis that the Australian Competition and Consumer Commission (ACCC) has been placing on the possibility of ‘coordinated effects’ as a reason for deciding to oppose mergers between firms. While concerns about mergers resulting in potentially harmful coordinated effects have a solid grounding in economic theory, quantifying them robustly can be difficult. For this reason, assessing coordinated effects will often rely on qualitative assessments. To be credible these assessments need to establish a realistic explanation of the degree of likelihood and damage to competition of the coordinated conduct following a merger.

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