The duration of the EC merger control process: Determinants and the impact of the 2004 merger regulation reform

The duration of merger proceedings held by competition authorities is animportant determinant of the efficiency of the entire merger control process. A data setof 2953 Phase I and 92 Phase II investigations completed by the EuropeanCommission (EC) between 1999 and 2008 is used to examine the key determinants oftheir duration. Differentiating between authority- and case-related drivers, the findingsshow that while the duration of Phase I investigations largely depends on the type ofdecision and use of simplified procedure, the duration of Phase II investigations isdriven by factors such as industry knowledge, the duration of the preceding Phase Iinvestigation, the origin of the notifying firm, or the number of identified relevantmarkets. Evidence is also provided that the significant increase in average durationidentified after the 2004 merger regulation reform does not imply a decrease inadministrative efficiency, as the probability of in-depth investigations wascorrespondingly reduced.