Unbundling the arguments

ECONOMIC ISSUES RAISED BY THE PROPOSED GE-HONEYWELL MERGER

Much comment on the European Commission’s handling of the proposed merger between General Electric (GE) and Honeywell centred on transatlantic differences in competition policy. At the heart of these differences has been the potential for product “bundling” on the part of the merged firm, and the likely impact of this upon competition. This bulletin seeks to explain the underlying economics.

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