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Argument For And Against The Commission Decision
Finance & Accounting
Pages 12 (3012 words)
ARGUMENT FOR AND AGAINST THE COMMISSION DECISION Name: Instructor: Task: Date: Argument for and against the Commission decision Introduction The joining of the GE and the Honeywell corporate would affect the product markets that deal with aerospace and power system industries.
However, Nalebuff 2001 (p 3) highlights the negative effects through “to block a merger, the Merger Control Regulation requires the Commission to demonstrate that the proposed merger would lead to market dominance”. This means that the associaction is likely to culminate in market dominance. However, some people have argued against the Commission’s view saying that bundling would make the businesses to be concerned more about their competitors than the consumers’ welfare. Some have also argued that putting bundling into practice would be difficult because of the issues relating to price negotiation (Regualtion (EEC) 2001, 2). Argument for the EC decision on Bundling The Commission opined that the merging of the EG and Honeywell would enable the entity to partake in more coercive forms of bundling, which would effectively deprive the consumers of choice. According to Pfanz (2001), the categories of bundling might have included pure and mixed. Indeed, as the paper progresses it would be simpler to deduce the category. The Commission suggested that the bundling technique would have many pleasant effects on the merged GE and Honeywell’s competitors in the markets for aerospace equipment and jet engines. ...
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