Vertical, Conglomerate Effects (in Merger Control)

This entry looks at the nonhorizontal effects that a merger may lead to, based on the law, soft law and case law from multiple jurisdictions. In terms of vertical theories of harm, it focuses on input and customer foreclosure, coordinated effects and access to commercially sensitive information. Regarding conglomerate theories of harm, it addresses conglomerate foreclosure. The nascent ecosystem theories of harm or entrenchment theories of harm are also discussed. While horizontal theories of harm continue to be at the forefront of merger control, nonhorizontal theories are getting a firm foothold in agency practice. This is particularly true — and a welcome development — in digital markets.