Integrating Innovation Concepts into the Merger Control Context

Merger control has emerged as a focal point of global scrutiny as competition authorities increasingly rely on speculative innovation harms to challenge merger and acquisition activity.

While innovation is finally being recognized as a key driver of competition, Gönenç Gürkaynak and Dr. David Teece argue that enforcement agencies often apply static analytical tools that fail to capture the dynamic nature of innovation. This mismatch risks undermining innovation, economic growth, and even national security.

Treating innovation requires a more neutral starting point using fact-intensive, case-by-case analysis that incorporates dynamic efficiencies, spillover effects, and long-term benefits of innovation.

The authors call for a paradigm shift to a multidisciplinary methodology that ensures merger control fosters innovation and supports long-term welfare.

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