Project Title

Economic Analysis in Horizontal and Non-Horizontal Mergers 

Project Year

2018   

Project Number

CPLG 01 2018A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

CPLG 01 2018A 

Project Title

Economic Analysis in Horizontal and Non-Horizontal Mergers 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Renewed APEC Agenda on Structural Reform (RAASR) 

Project Year

2018 

Project Session

Session 1 

APEC Funding

137,000 

Co-funding Amount

25,000 

Total Project Value

162,000 

Sponsoring Forum

Competition Policy and Law Group (CPLG) 

Topics

Competition Policy; Deregulation 

Committee

Economic Committee (EC) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chile 

Co-Sponsoring Economies

Papua New Guinea; Peru; Chinese Taipei; Viet Nam 

Expected Start Date

01/07/2018 

Expected Completion Date

31/08/2019 

Project Proponent Name 1

Francisco Munoz Nunez 

Job Title 1

Project Overseer 

Organization 1

Fiscalia Nacional Economica 

Postal Address 1

Huerfanos 670, Piso 8, Santiago, Chile 

Telephone 1

56-2 27535601 

Fax 1

Not Applicable 

Email 1

jiloeser@fne.gob.cl 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Francisco Munoz Nunez 

Project Summary

The prospective nature of the analysis in merger control implies that the economic evidence represents a key input for the decision of the authority. The economic tools used by different competition authorities have significantly evolved in past years. The latter has generated new possibilities on addressing and measuring risks associated to non-horizontal and horizontal mergers. Nevertheless, simpler and older quantitative tools, such as the definition of relevant market, HHI index and market shares, remain important in the decisions of many competition authorities.

The objective of the seminar is to discuss the strengths and weaknesses of different tools used to measure the potential competitive impact of horizontal and non-horizontal mergers. Also, to evaluate the importance and validity of simpler tools commonly used to filter out which mergers could present more risks. The seminar will be held in Chile, on the margins of the CPLG meeting during SOM 1 2019.

Relevance

Relevance – Region: The promotion of competition in different markets remains a key element to produce economic growth, innovation, productivity, and finally, welfare. A correct and transparent competitive analysis of the several mergers that take place in a specific economy contributes to the achievement of that goal. 

The evolution of the quantitative analysis used in merger control in the past two decades can eventually lead to think that the complexity of the tools actually used by some authorities allows, by itself, to get a complete understanding of the competitive effects of the studied merger. Nonetheless, reality is more complex and uncertain than any simulation that the human mind can create. 

This seminar will help to improve the understanding, by the APEC economies, of the strength, weakness, limitations and validity of the different quantitative tools used in merger control by the most prestigious competition authorities. It will also discuss the importance and relevance of the definition of a relevant market, especially in the actual context where the new tools usually dispense of the use of a market definition.

The latter will help the APEC developing economies to weight the economic evidence when they face the decision of approving or not a specific merger. 

Relevance – Eligibility: Merger control is an essential part of a competition policy regime. An effective tool for the analysis of merger control is then important for ensuring a competitive market. This project then helps APEC economies, especially those that are developing or that have relatively new competition agencies, to further develop skills on these issues which are directly linked to their RAASR Individual Action Plan (IAP). 

This Project falls under Sub-Fund on the Renewed APEC Agenda for Structural Reform (RAASR), which gives priority to the implementation of structural reforms, especially in promoting an open and competitive market environment under the RAASR 2016 – 2020 initiative. 

Relevance – Capacity Building: This project will support the capacity building needs of developing APEC economies by providing the necessary knowledge to implement tools to analyze and assess merger cases, as well as sharing experiences and best practices of developed APEC economies. While this content is relevant and useful for all APEC economies, it will be specifically targeted to address developing economy members’ capacity building needs, especially those with relatively new competition agencies. 

Developing economies officially co-sponsoring this project will be actively consulted in the design of the workshop and its specific agenda and content in order to provide the most responsive and useful outputs for developing economy needs.

Objectives

The objectives of this project are to:

1) provide practical knowledge for the APEC economies to enhance their capacity of using economic evidence in dealing with merger control;

2) weigh the quantitative evidence according to its validity in the decision-making process; and

3) bring in expert advice from competition experts on the strengths and weaknesses of the different quantitative tools used in the study of horizontal and non- horizontal mergers.

Alignment

Alignment - APEC:  This project is in line with APEC’s Competition Policy 2014 Collective Action Plan -        (f) Contribute to the use of trade and competition laws, policies and measures that promote free and open trade, investment and competition.

This project seeks to support APEC developing economies and is in line with Pillar 1 & 2 of RAASR. 

Alignment – Forum: The proposed subject of this workshop is in line with priorities of EC and CPLG, with regard to promoting a good competitive environment, building capacity, and sharing of experiences and best practices to implement RAASR Priorities.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: The outputs that the project will create are the following:

a)  The main output of the project is a two-day workshop or seminar to be held during the margins of SOM 1 of Chile 2019. The aim of this workshop is to enhance the capacity of APEC economies in the use of economic evidence by their competition agencies as a way to deal with merger control assessment. Specifically, the project attempts to improve the understanding of how to use the quantitative evidence accordingly in order to take the best decision regarding this matter. 

This workshop will be carefully planned during the following months. The objective is to have recognized experts and academics on the subject matter that will provide advice. APEC participants would be asked to prepare presentations in order to encourage an exchange of ideas and local experiences. 

For the success of this project, APEC economies’ representatives will be encouraged to participate in this activity and the Chilean staff will develop actions towards this end, such as contacting embassies and governmental authorities to obtain responses to participate in the workshop and increase networking. 

The program and schedule for the workshop will be organized and developed by the staff of Fiscalía Nacional Económica de Chile (FNE) together with the staff of Dirección General de Relaciones Económicas Internacionales (DIRECON) in a venue to be confirmed in the following months.

The Agenda for the 2-days-Workshop is envisioned to have 4-5 presentations from recognized experts and then to take up presentations from the APEC participants. The Workshop would be facilitated by a representative of the FNE. 

b) Organizers (FNE) will summarize the main recommendations and conclusions of the two-day workshop in a document that will be called “Final Project Report”. Then, the Chilean staff will share the draft of the document for comments and suggestions with participants from APEC economies during 2019 in order to get a final document that will explain and summarize the conclusions of the Workshop. This Report will fulfil the needed criteria to be published as an APEC publication. 

c) Lastly, it is estimated that the workshop will allow networking between speakers and participants to exchange views and experiences on merger control analyses. It will also promote better understanding of available working tools and initiatives within APEC member economies. 

Outcomes: Across APEC economies, more and more competition authorities are faced with the challenges of merger control. As new authorities develop, more time and efforts are taken up by this area. Thus, having the right tools to analyze mergers is essential. 

The workshop would give an overview of the benefits and set-backs of using new tools for measuring risks associated to non-horizontal and horizontal mergers, comparing them to simpler and traditional quantitative tools, such as the definition of relevant market, HHI index and market shares. This would help especially those APEC economies with new merger control systems in order to develop their capacity in this area. Learning from best practices in this regard, will help substantially to develop an effective and efficient merger analysis system, and to quantify the extent of different risks identified in merger assessment. 

Finally, the Final Project Report would provide participant economies a good technical basis to assess these tools in different merger assessment cases. 

As a specific outcome of the workshop and the Final Project Report, it is expected that participant economies will be more prepared to assess merger control analysis and will apply the tools presented and described by competition policy experts during the workshop. To measure the success of the workshop, a survey over knowledge on merger control assessment techniques will be taken during the workshop to stablish a baseline between participants, and an additional survey will be conducted via email 6 months after the workshop in order to quantify measurable progresses of the participants. 

Beneficiaries: The direct beneficiaries of the project will be APEC member economies’ public officials and regulators, especially officers of competition agencies within APEC - in particular APEC developing economies with new competition authorities -, multi-stakeholders, including civil society, and any public or private stakeholders that benefit from a better management of merger reviews. In addition, the private sector, represented by different industry chambers or ABAC, will be invited to participate in the workshop, and they will be beneficiaries as well, improving the level of the discussion between the private and public sector in merger control analysis. 

Indirect beneficiaries are those representatives, government officials and policy makers, including those not able to attend the workshop, who will be able to attain the discussions and recommendations from the report which will be drawn from the workshop. The report will be formally submitted to CPLG and EC, and further be disseminated accordingly in APEC.

Finally the OECD has been a dominant guideline maker on competition policy in the world. In that sense, as an indirect beneficiary of the workshop, through APEC economies that also belong to OECD, it could spread the obtained knowledge through guidelines to others economies outside APEC.

Dissemination

This Project considers the following activities to disseminate its outcomes: 

A Final Project Report, which would include a summary of the activity as well as final conclusions of the seminar is intended to be published in digital format, through the APEC website. It will fulfil the needed criteria to be published as an APEC publication, and organizers (FNE) will write it. 

Also, in order to achieve a greater level of dissemination of the results of this project, contents shall be shared in social media such as twitter, news releases in the websites or newspapers. Additionally, the workshop presentations will be disseminated through APEC, either as public or private documents. 

The directly targeted audiences are public officials (especially competition authorities), experts in Competition Policy; civil society; and any public or private stakeholders involved or with interest in the field. 

It is expected that participants from APEC economies, as well as other economies, could attend the workshop. The work team will explore options for remote participation in the workshop via streaming. 

A brief summary of the project’s outcomes, will be presented during the CPLG meeting, following the workshop (SOM 1, 2019). 

It is not contemplated to sell outputs arising from this project. On the contrary, its core objective is to disseminate as much as possible the results, in order to attain interest, commentaries, or any kind of contribution from APEC economies for the development of good practices in short term.

Gender

The organization of the workshop will promote APEC’s gender balance principles, both regarding nominated participants and invited speakers. APEC travel-eligible economies will be invited to send 2 participants who can be EC/CPLG representatives of their economies. 

For the staff, it is fundamental to incorporate men and women equally as speakers and participants for the two-day workshop, and will make their best efforts to achieve this purpose.

Work Plan


September – 2018: Developing the agenda and Contact speakers for the workshop: Identify the workshop speakers and participants. Prepare the workshop regarding programming and circulation of the respective invitations, among others. Invitation of speakers, as well as experts and authorities from relevant agencies on this issue. The importance of its role as speakers will be explained. Survey before the workshop between APEC economies that will address the different interests and expectations of attendants. 

September - 2018: Program follow up: Design and prepare the workshop and prepare the workshop. The structure of the workshop will be developed considering the list of speakers obtained in the prior activity. Contributions of the co-sponsoring and participating economies will be taken into account. 

October to November - 2018: Contacting the participants: This month will be focused on detecting possible workshop participants. Invitations will be sent out to participants in the public-private workshop; not only to the eligible economies, but also other APEC economies. By achieving this objective, governmental authorities and embassies will be asked to support the dissemination of the importance of participating in this workshop. 

December to January – 2018: Speakers and Participant’s confirmation: After obtaining the final confirmation of the attendance to the workshop of speakers and participants, the arrangements for flights and hotels respectively will follow. 

February - 2019: Holding the two-day workshop: gathering experts in project topics, as well as government agencies involved in these issues and other public institutions. 

March – April - 2019: Outcomes Diffusion: through the APEC website as well as interested intergovernmental - government agencies’ websites. 

Further 2019: Submission of Final Project Report to Economic Committee and PMU (in SOM3, 2019)

Time

Tasks

Deliverables

September 2018

Survey before the workshop that will address the different interests and expectations of attendants.

Speakers and topics coherent with the interests of the different economies.

September 2018

Develop the agenda of the workshop with inputs of APEC economies and contact potential speakers from stakeholders.

Program coherent with the interests of the different economies.

Sept 2018 –               January 2019

Logistics and document preparation; invite CPLG members to nominate participants representing their respective Economy.

Reservation of Hotels where the Workshop is going to take place, and confirmation of the attendants and speakers.

February 2019

Hold the two-day workshop, on the margins of SOM1, in Chile. Survey to obtain baseline in order to measure effectiveness of the workshop and Final Project Report.

Workshop and baseline set up.

March – May 2019

Develop a Final Project Report after the seminar and submit it to the EC for information, as well as a brochure including the presentations and main conclusions to be digitally circulated.

Brochure and Final Project Report.

July 2019

Email survey to participants in order to quantify success of the tools presented during the workshop.

Internal document from organizers to that will present the effectiveness of the workshop.

Risks

This project may face difficulties to achieve a high level of quality of speakers that are able to engage and fully address the objectives established within the project. To increase the probability of attaining high level speakers, the Chilean network will play an important role, as well as co-sponsors’. 

The major risk is to not obtain a comprehensive participation in the event as is intended. Nevertheless, we expect participants from co-sponsoring and other interested economies to attend. To minimize this risk, all the actions will be supported by Chilean embassies and trade representatives in all APEC economies. This network will help identify and engage possible speakers and participants. In this sense, the planning of this project will contemplate an early dissemination of its components, the topics and experts of the two-day workshop. Also, the timing of the workshop helps to minimize the risk of low attendance of APEC economies given the fact that the workshop is intended to be programmed as close to the CPLG meeting in SOM 1 2019 as possible.

Monitoring and Evaluation

The staff of the FNE will conduct a survey before, during and after the Workshop. The first one will address the different interests and expectations of the attendants in order to optimize their learning experience from the seminar and adapt the Workshop program in a coherent way with the expectation and interest of the economies. 

As mentioned before, during the workshop a survey over knowledge on merger control assessment techniques will be taken to stablish a baseline between participants in order to quantify future progress and success of the seminar. 

Finally, the survey after the Workshop will have the objective to measure overall evaluation of the experience in the Workshop to assess the effectiveness of the dialogue with respect to the relevance on the topics, presentations by speakers, overall impact and suggestions for further activities or topics. This survey will include elements such as: level of satisfaction of each of the discussion panels in terms of knowledge acquired and transmitted, as well the actual application of the tools, lessons, recommendations and techniques learned during the seminar by participant economies. 

Another indicator will be the number of participants, funded as well as non-funded. The expected outcome in terms of participation of funded economies is at least 80% and in terms of non-funded economies is at least 40%.

Lastly, there will be an indicator of gender equality participation in the workshop as speakers and as attendants.

Linkages

The project executors will ensure fruitful and active informational exchange among all the participants, including cross-fora cooperation on the issues related to the successful implementation of the project. This include the EC, as well as other APEC groups such as ABAC; and other regional and international agencies and organizations (OECD, ICN, etc).

Sustainability

This project seeks to provide continuity to the actions the workshop Information Sharing Best Practices Workshop on Merger Control Regimes used by APEC economies that was held in Papua New Guinea in 2018. The main focus of the PNG workshop was to identify best practices regarding merger control regimes (MCRs) to help APEC economies strengthen or develop MCRs in their economies. This project provides for a next step on the development of MCR by focusing on quantitative analysis tools as well as other related issues. 

It is contemplated to share the final recommendations provided by the workshop with APEC economies for comments and suggestions in order to include all the observations. Consequently, the results of the workshop will be disseminated to the APEC economies for comments and suggestions. This type of activity will help to consider views and maintain cooperation among the members. It is expected that such step in long term will promote the collaboration between APEC economies, exploring collaborative projects with APEC host economies in the following years.

Project Overseers

First Point of Contact:
Mr. Francisco Muñoz Núñez
Economist of the Mergers Division at the Fiscalía Nacional Económica (Chilean Competition Agency)
Email: fmunoz@fne.gob.cl

Second Point of Contact: 
Mr. Felipe Cerda 
Head of the Mergers Division at the Fiscalía Nacional Económica (Chilean Competition Agency)
Email: fcerda@fne.gob.cl

Third Point of Contact:
Mrs. Cristina Bas
Competition Policy Expert; Market Access Department
General Directorate of International Economic Relations
Ministry of Foreign Affairs
Email: cbas@direcon.gob.cl 
Telephone: (56 2) 2827 5405

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
Attachments
Version: 2.0 
Created at 07/08/2018 15:32  by Lucy Phua 
Last modified at 07/08/2018 15:35  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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