DG Competition launches a call for tender for an economic study on the dynamic effects of mergers

DG COMP has launched a call for tender for an economic study on the dynamic effects of mergers, such as its impact on incentives to innovate and invest. The study aims to provide analytical foundations to assess whether a merger has a positive or negative impact on these dynamic factors, and how they trade off against static factors – such as changes in prices or output.

Dynamic merger effects are linked to firms’ forward-looking behaviours, particularly their ability and incentive to invest and innovate, as well as to enter or exit a market in the mid-to-long term. Dynamic merger effects can be either positive (leading to efficiencies) or negative (leading to harm). Merger static effects refer to the immediate, short-term impacts of mergers on a market, such as changes in prices, output, and market concentration.

This study will help inform and refine the Commission’s enforcement practice in EU merger control. The findings from this study will also be instrumental for the evidenced-based review of the 2004 Horizontal Merger Guidelines and the 2008 Non-horizontal Merger Guidelines, ensuring our practice remains effective and relevant, giving adequate weight to innovation, investment and resilience.

 The study will consist of a comprehensive assessment of dynamic merger effects in four parts: 

• Part 1: An interdisciplinary synopsis assessing relevant facts, figures, and economic theories related to innovation and investment competition, integrating insights from industrial economics, financial economics, macroeconomics, and business literature. It should relate results from different disciplines to each other and distil the implications for the specific context of merger control.
• Part 2: A conceptual analysis identifying the conditions under which mergers may yield dynamic benefits or harms, detailing the economic mechanisms, criteria for measurement, and offering insights into how balancing opposing effects.
• Part 3: An applied examination using case examples to demonstrate the practical relevance of these factors.
• Part 4: An evaluation of the likelihood of the relevant mechanisms in practice, identifying bottlenecks to investment and innovation, and suggesting how EU merger control could help to address these challenges.

DG Competition invite economic researchers and experienced practitioners to submit their state-of-the-art proposals by 20/05/2025 16:00 Europe/Brussels.

For more information, check DG COMP dedicated subpage for Tenders.