Series/Report no.:
ITS 33rd European Conference 2025: "Digital innovation and transformation in uncertain times", Edinburgh, UK, 29th June – 1st July 2025
Abstract:
The Draghi (2024) Report defines clear policies to restore the competitiveness of the EU through raising investment in innovation. The Report proposes "New EU Telecom Act" to update merger control through considering both static and dynamic effects rather than just static market shares or Herfindahl Index (HHI). Some authors have argued that Draghi's view on the consolidation's effects on investment is flawed. This article provides a review of the literature on the impact of mergers and mobile market concentration on price, investment, and quality. It also provides evidence that the evolution of mobile markets during the two last decades have changed the ways that mergers affect competition. It provides policy makers with relevant insights to form their views on the desirability of consolidation in the European wireless markets, in a context where the need for a new approach to mergers in the telecom sector has been outlined in the Draghi's report.