International Antitrust Law & Policy: Fordham Corporate Law 2001 - Hardcover
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Chapter 10
INTERNATIONAL MERGERS: THE VIEW
FROM A NATIONAL AUTHORITY
John Vickers†
I. INTRODUCTION
Does the role of national authorities in international merger control need
rethinking? I will look at this question from the pure and unbiased
perspective of a national authority – the UK’s Office of Fair Trading. My
answer will be a qualified Yes.
In reaching that answer I will put less weight than some on the
proposition that the merger process would be less costly if more internationalised.
That proposition is correct, but perhaps not quite to the extent
sometimes argued. It is a proposition put forcefully by, among others, some
business interests. But care is needed in making the point lest it be heard by
some as a plea that international mergers should simply be easier to bring
about. Of course they should not encounter needless and wasteful hassle. But
if there is a serious question that an international merger might substantially
lessen competition – to the ultimate detriment of consumers – then it is
important that it be scrutinised, and be seen to be scrutinised, by competition
authorities, and moreover by competition authorities with public legitimacy.
Such scrutiny is good, not bad, for the international business system insofar
as it maintains the competitive market infrastructure that drives its effectiveness
and sustains its public acceptability.
The argument for (somewhat) more internationalised merger control that I
want to explore in this paper is not lower costs but greater effectiveness,
especially when it comes to remedies.
II. VIEWPOINT
In the global scheme of things the UK is at least a medium-sized economy.
In terms of GDP at current prices it is about the fourth largest in the world –
smaller than the United States, Japan and Germany and on a par with France
and Italy. The UK long has been, and remains, a very open economy in terms
of trade and international capital flows. Much multinational business is UK-
Director General of Fair Trading, Office of Fair Trading, London. I am very
grateful to Andrew White, former Director of Mergers at the OFT, for all that he has
contributed to this paper.
