26 September 2013
Where Economists Roam: Syniverse/MACH and contestability
On 29 May 2013, following a full Phase 2 investigation, the European Commission (the
“Commission”) announced its decision to approve the proposed acquisition of MACH by Syniverse, subject to conditions.1 In this Brief we explore how the economic theory of
contestable markets and the threat of self-supply by customers in!uenced the Commission to be more tolerant of high levels of market concentration, and we draw out some practical implications for the design of remedies in such cases.