Antitrust

Hadas: The mystery of lost competition

6 Dec 2017

The U.S. tax cut is expected to boost corporate earnings but not lower prices or raise wages. That implies there’s too much tacit collusion for basic economic theory to work as designed. Limited price competition is great for shareholder value, but bad for the economy.

Sky investors choose between profit and principles

12 Oct 2017

Chairman James Murdoch faces a backlash over concerns about his independence as Twenty-First Century Fox, which he runs, tries to buy the UK pay-TV group. Shareholders have legitimate corporate-governance grievances. But financially they’d be better off with Murdoch’s money.

Google clears deck for huge antitrust fight

27 Sep 2017

The company is separating its European shopping unit and allowing rivals to bid for ads. That solves one problem it has with watchdogs while minimizing losses and continuing an appeal. It also frees up Google to battle the EU over claims it uses Android to dominate online search.

EU probe may be least of EssilorLuxottica problems

27 Sep 2017

Brussels is polishing its glasses for a close antitrust read of the $54 bln merger of Essilor and Luxottica. But the eyewear behemoths face other headaches, like customer defections and new competitor alliances. By the time the deal closes, its benefits could look fuzzy.

Murdochs pay price for governance scandals

12 Sep 2017

Fox’s bid for Sky may be delayed after a minister questioned whether phone-hacking and harassment scandals could hurt broadcasting standards. It raises the risks of an awkward investigation. Worse, the UK’s volatile politics could shift further against Fox owner Rupert Murdoch.

Soft tech dominance brings on hard fight

31 Aug 2017

The exit of internet-monopoly researchers from a Google-funded think tank signals a larger battle. Tech firms have reaped fortunes controlling search, data and advertising. The companies and regulators are slowly taking the concentration of influence more seriously.

RBS gains more than consumers from state aid fudge

27 Jul 2017

The UK bank will pay over 800 million pounds to hang on to a lending arm that European antitrust authorities wanted it to offload. The boost to competition is hard to assess. But the Treasury-negotiated deal hauls RBS closer to becoming a normal bank – at a good price.

Facebook quest beyond ads should top itinerary

26 Jul 2017

The social network beat profit estimates as more brands sought to reach its 2 bln users. Yet revenue growth is easing and mobile’s dominant share of advertising has limited upside. For a company near the top of its game, it’s a good time to explore alternatives to Madison Avenue.

M&A may become the new Democratic whipping boy

24 Jul 2017

After losing the presidency to Trump, the opposition wants tougher antitrust oversight. Deals involving United Airlines, AT&T-Time Warner and Dow-DuPont are in the crosshairs, as are near-monopolies like Facebook. A fight is brewing against the concentration of corporate power.

Carmakers need more collaboration, not less

24 Jul 2017

Germany’s VW, BMW and Daimler may have illegally colluded on emissions cleaning systems. The scale of potential misconduct is hard to judge. But if consumers don’t suffer, big technological change and bloated R&D budgets suggest more carmaker cooperation is nothing to be feared.

Murdoch’s Sky takeover can survive lengthy review

14 Jul 2017

The media mogul won’t offer more concessions to win quick approval for his 11.7 bln pound bid for the UK broadcaster. That will probably trigger an extended probe which investors think makes a deal less likely. But authorities can suggest remedies to clear the way for a deal.

Murdoch’s Sky bid promises lack credibility

29 Jun 2017

Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.

Google’s EU fine more about principle than money

27 Jun 2017

While a 2.4 billion euro penalty is the biggest Europe has ever applied for antitrust violations, Google is rich enough to absorb the hit. More damaging, if it sticks, is the new idea that the search giant ought not to use its market dominance to privilege its own products.

EU clearing spat epitomises perils of hard Brexit

2 May 2017

Brussels may try to restrict euro-denominated clearing in the UK, a report says. European regulators have long fretted over the fact that most of it occurs outside the euro area. A compromise is more than possible – but is harder to achieve if Britain leaves the single market.

Vivendi’s Italy slap dents finances and ambition

19 Apr 2017

The French group’s stakes in Telecom Italia and Silvio Berlusconi’s Mediaset have fallen foul of plurality laws. Chair Vincent Bollore could sell either, appeal, or less painfully reach a workaround with Berlusconi. But the blunder undermines Bollore’s southern European push.

Holding: Cross-shareholding theories are overdone

18 Apr 2017

The latest antitrust fad says even the smallish stakes BlackRock and others own in multiple rivals can reduce competition. Studies arguing such holdings led to higher airfares sparked a U.S. investigation, but the evidence is weak. It looks like an answer in search of a question.

Second Sky bid leaves Murdochs with too much power

10 Apr 2017

Regulators are reviewing Fox's $14.5 bln offer for the pay-TV firm. In 2011 they said a bid by Murdoch-controlled News Corp risked leaving control of UK media in too few hands. Though the clan's influence has waned since then, concessions should still be on the table.

LSE-Deutsche Boerse failure merits only fake tears

29 Mar 2017

Brussels has blocked the European exchanges’ $30 bln merger. The LSE’s reluctance to sell a trading platform looks like a fig leaf. A cautiously positive market reaction flags that both groups have dodged the trials of steering the deal through Brexit.

Colao trades one Vodafone risk for another

20 Mar 2017

The telco chief’s joint ventures in India and the Netherlands are a clever way to get scale and efficiency, and may help Vodafone’s valuation. The catch: investors depend on Vittorio Colao keeping his JV partners sweet. Too much success or too little could jeopardise the balance.

Even flawed UPS trustbusters beat none at all

7 Mar 2017

Brussels has egg on its face after a court overturned its 2013 decision to block the U.S. parcel delivery outfit's merger with TNT. Europe rarely nixes deals, and occasional errors are inevitable. A bigger threat to M&A is protectionism, which requires far less serious analysis.