EU ANTITRUST: HOT TOPICS & NEXT STEPS

Prague, Czechia

EU ANTITRUST: HOT TOPICS & NEXT STEPS 2022

Teleological Perspective of EU Merger Control and its Interplay with Killer Acquisitions on Digital Markets Monika Woźniak-Cichuta University of Warsaw Faculty of Law and Administration, Chair of European Law Krakowskie Przedmieście 26/28, Warsaw, 00-927 Poland e-mail: m.wozniak@wpia.uw.edu.pl Abstract “Killer acquisitions” are the acquisitions of small, innovative companies (start ups) by undertakings with significant market power. The scope of the research is limited to digital markets, where a low level of competition can be observed. The paper aims to analyse killer acquisitions from the perspective of the teleology of the EU merger control. The research is based on the assumption that the insufficient level of prevention of start-up acquisitions is inconsistent with the deontological approach teleology of EU competition law. The paper explores if and how the European Commission refers to freedom of competition and consumer welfare (the core values of the deontological and consequentialist approach) in its merger control decisions and how this could influence competition policy towards killer acquisitions on digital markets. Keywords: competition law, digital markets, killer acquisitions, merger control, teleology JEL Classification: K210 1.1 Killer acquisitions In the last few years, particular attention in terms of adjustment of the antitrust rules to the digital sector has been put on merger control and how to address so called “killer acquisitions”. “Killer acquisitions” are the acquisitions of small, innovative companies (start ups) by undertakings with significant market power. The scope of the research is limited to digital markets, where a low level of competition can be observed: smaller undertakings are excluded from the innovation race by entities with significant market power. This status quo can be disturbed by the development of start-ups. Innovation, on which start-ups base their business model, is a parameter 1. Introduction

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