In this area you can find our insights into competition policy matters and public procurement issues. Have a look at our post below.
The spreading on the Internet of false and derogatory information can cause considerable damages. Companies have various means to protect their interests against the risks posed by fake news. They are: continuous monitoring of the network, timely communication initiatives to contrast the negative effects of derogatory information, and legal actions to obtain the removal of the news and the deindexing of the sites that host it. As a last resort, companies can ask for damages.
The quantification of the damage can rely on the typical general approach. It requires the identification of a counterfactual scenario that describes the profits the company would have earner if the fake news had never been released. Then, through the comparison between the factual world and the counterfactual one, it is possible to quantify the harm caused by the fake news. Damages calculated in such a way aim to compensate the company for the loss they suffered. Read more
Companies active in digital markets are remarkably involved in mergers and acquisitions (“M&A”), constantly seeking out interesting start-ups and purchasing them.
One common concern raised by these transactions is that they may have the objective of preventing the target company from ever becoming a competitive threat. This may be especially problematic in the context of digital markets, where, due to network effects, often competition is for the market rather than in the market and where, the competitive threat exerted by small market players or potential entrants is essential to discipline incumbents’ market behavior. Read more
Public procurement is an increasingly critical function for government worldwide. It represents a significant share of a country’s GDP and, considering its magnitude, any related decision can influence the level and structure of competition in a market. Being a founding principle in government procurement, competition should always be guaranteed. When designing a public tender, there are a variety of factors that have an impact on the intensity competition, such as choice of the procedure, selection criteria, number and size of lots, modality of advertisement of procurement notices, deadlines for submission of bids, and/or award criteria. These factors not only determine how fiercely bidders will compete but also on which dimension they will do so. Read more
On December 12, 2018 the Italian Competition Authority (ICA) found that the agreement between Grifols and Kedrion to submit a joint bid for the contract manufacturing of plasma therapeutic products derived from blood donations to a consortium of Italian Regions led by Emilia Romagna, was not anticompetitive, but rather enhanced the welfare of the Italian Healthcare System. Lear assisted Grifols in the proceedings and its economic analyses have been key to demonstrate that the agreement with Kedrion did not breach Article 101 TFUE. Read more
Denigratory news spread through internet can seriously hurt firms. However, firms can claim damages. To this end, they have to show the extent of the damages, as well as the existence of a causal relationship between the practice and damages. This burden of proof may be satisfied with the help of economic analysis.
To determine the negative effects of denigration, it is essential to understand how reputation affects the ability of a firm to generate income. First of all, reputation affects consumers’ decisions: brand and reputation are crucial elements of a firm’s marketing strategies and often represent its most valuable assets. Read more
For a better understanding of the role of investments in capacity building, it is crucial to clearly define capacity building in all its various aspects. Quite often, the notion of capacity building is associated to the idea of increasing or developing skills and competencies at an individual level, i.e. training of staff.
Capacity building is a much broader concept that should be considered from a systemic perspective, which involves different clusters, as individuals, organizations, institution and society.