The skills we apply to market investigations
Market investigations look into mergers and anti-competitive practices to make sure competition and markets work well for consumers. Oxera applies the following areas of learning to each inquiry in which it supports a client: technical economic and quantitative skills, experience of previous market investigations, and communication skills.
Technical economic and quantitative skills
We provide compelling inputs and an effective challenge to the public authority and any other parties involved in the investigation.
Experience of previous market investigations
Due to our knowledge of the authority’s processes, staff, and wider priorities, we can suggest to clients and lawyers the type of analysis with the greatest impact.
Our ability to engage client staff at all levels, from CEOs to database managers, makes us an effective adviser. We can explain the market investigation process and overall driving philosophy to make sure the client focuses on the relevant issues and understands the broader picture.
What sets us apart
- Rigorous grounding in industrial and competition economics
- Supporting clients on competition investigations, merger proceedings, and state aid
- Worked on nearly all market investigations undertaken by the UK competition authority since 2004
- Leading authority on corporate finance issues
- Undertaken profitability analyses in many CMA market investigations
- Extensive experience in advising regulators and companies on profitability benchmarks, risk, and commensurate returns
Regulation, policy and market analysis
- Deep knowledge across many industries
- Well-developed understanding of various commercial and regulatory frameworks
- Extensive experience of advising companies and traders on regulatory matters, policy reforms, and market investigations
- Suite of market models to help conduct quantitative impact assessments of energy policy reforms and regulatory proposals
Ensuring a successful outcome
|Client:||Direct Line Group (DLG)|
|Venue:||Success for DLG and other insurers|
Client: Direct Line Group (DLG)
Type: CMA investigation
Venue: Success for DLG and other insurers
Oxera supported DLG throughout both stages of the CMA investigation.
We helped develop DLG’s strategy for the investigation and potential outcomes. This led to light informational remedies being imposed on DLG and other insurers. The CMA had considered more fundamental changes to the market but representations from DLG and others persuaded it not to go ahead with these.
Challenging the CMA
|Venue:||Minimised remedies package|
Type: CMA investigation
Venue: Minimised remedies package
Throughout both stages of the CMA’s investigation, we worked closely with Arriva and external lawyers, providing economic input on Arriva’s submissions. We produced bespoke economic analysis to address one of the CMA’s theories of harm, critiqued its econometric analysis of consumer harm and profitability analysis, and attended hearings with the CMA.
With our help, Arriva minimised the total adverse effect on competition claimed by the CMA. This limited the severity of its remedies package, which meant less commercial impact on the client.
The close team of lawyers, economists, DLG competition counsel and business people led to this success. Together, we provided the CMA with a clear and consistent picture that was in line with DLG’s overall approach.
With our help, DLG also encouraged the CMA to focus on the market power and contractual clauses of insurance price comparison websites. As a result, it imposed remedies to remove certain types of clause. We provided submissions to the CMA and critiqued its arguments, evidence and theoretical modelling.