EU's Ruling Endorses Bloc Scrutiny on Ecosystem Harms in M&As, A&O Shearman Lawyer Says

Dow Jones
Sep 10

0725 GMT - A recent ruling by an EU court endorses antitrust officials' ability to look at ecosystem harms--where a dominant tech group could use its network of products and services to weaken competition-- in merger cases, says Francesca Miotto, a partner at law firm A&O Shearman. Booking Holdings failed to overturn an EU veto of its $1.9 billion ETraveli Group as judges said the European Commission was right to find that buying ETraveli would have bolstered its already dominant position in online hotel travel agencies. "We can expect the Commission to look to apply this in other digital markets transactions, especially where a dominant platform is acquiring a complementary service," she says, but adds that it remains to be seen if the watchdog would succeed with deals in other markets.

 

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