The line between pro-competitive and anticompetitive effects of so-called “killer” acquisitions in the digital market has drawn increasing antitrust scrutiny. In “Remember Stacker? Another Look at ‘Killer’ Acquisitions in the Digital Economy” in Competition Policy International, Analysis Group Managing Principals Divya Mathur and Marc Van Audenrode discuss the need for thoughtful antitrust analysis of digital acquisitions.
In a so-called “killer” acquisition, an incumbent buys a potential competitor and “kills” its innovative product in order to strengthen its own market position. This article studies the digital economy’s competitive dynamics and the motivations of early-stage and established companies, using as examples transactions between Microsoft and Stac Electronics, Amazon and Kiva Systems (now Amazon Robotics), and Microsoft and Hotmail (now Outlook.com). Given the complexities of any digital acquisition, the authors suggest that competition authorities must carefully consider the context of each individual transaction to accurately determine the balance of pro- and anticompetitive effects.
Associated People
Marc Van Audenrode
Dr. Van Audenrode is an expert in data analysis and econometrics, labor economics, antitrust and competition policy, and public economics. He has consulted to clients - including law firms and government agencies - in Canada, the US, and Europe. Dr. Van Audenrode’s work includes developing a methodology to value desktop software; he also developed expertise valuing goods as varied as restaurant franchises, executive stock options, or smartphone features. His recent work in public economics includes evaluating the economic rent from hydroelectricity to the Canadian economy and the value of logging rights on the ancestral territory of a Canadian First Nation. In the area of labor economics, his work has included filing an expert report assessing fair compensation for Quebec provincial judges and Quebec prosecutors and advising Quebec’s commission on pay equity. Dr. Van Audenrode has filed expert reports in courts in the US, Canada, Belgium, Germany, France, and the Netherlands, and has testified in Canada and the US. He recently filed a report with the Amsterdam Court of Appeal in support of the settlement reached between Ageas and claimant organizations in the Fortis case, the largest settlement ever reached through the Dutch Collective Settlement Act (WCAM). Dr. Van Audenrode’s scientific research and articles have been published in numerous peer-reviewed academic journals and trade journals. He is a coauthor of the book The Mutual Fund Industry: Competition and Investor Welfare, and is a frequent presenter at industry and academic conferences.
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