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Fearful asymmetry

Capacity asymmetries and merger analysis

One of the European Commission's main concerns about mergers in concentrated markets is the extent to which they may make these markets more susceptible to tacit collusion. A merger does not merely reduce the number of firms in the market; it may make collusion more or less likely by altering the degree of symmetry in their competitive capabilities. This bulletin explores the latest thinking on these issues in merger analysis.