The permissive stance of the European Commission towards mergers explained

Abstract

The European Commission adopts a permissive stance when it comes to mergers and acquisitions in the platform economy. This is in sharp contrast with the approach they take to cartels and abuse of a dominant position. This is puzzling because the effects are largely the same, there is less competition on the market. Two theories are used, social constructivism and neomercantilism. Social constructivism uses ideas and the norm life cycle to explain that the permissive stance is because the norm that mergers are good in the platform economy is internalized by the European Commission. Neomercantilism explains this through the advantages that arise for the European Union or disadvantages for other competitors. There are still further areas for research because there is much unknown about the platform economy.