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Motta, Peitz

Articles by Motta, Peitz

EU recovery fund: An opportunity for change

April 30, 2020

The EU has been criticized for not reacting quickly enough to the COVID-19 crisis and for providing neither a vision nor instruments to deal with its economic impact. Short term emergency funding has so far been mostly provided through aid programmes by the individual member states.
However, on 23 April 2020, the European Council agreed in principle on a “Roadmap to Recovery” and on establishing a new fund with the volume of more than €1 trillion to help overcome the severe economic crisis that the EU – as well as most of the world – has entered. The European Commission has been asked to develop a proposal for how to use this recovery fund. We see a unique opportunity to develop a truly European programme that  helps restructure the EU economy. The recovery fund may be

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EU state aid policies in the time of COVID-19

April 18, 2020

In recent days, a lot of media attention has been devoted to the different instruments that may allow EU member states – and in particular those most affected by the coronavirus outbreak – to raise funds for the economic policy response to the crisis (e.g. Galí 2020). 
The crucial issue is how to use such funds – however they are raised – to provide support to European businesses. We focus here on the severe distortionary risks created by state aid policies which are heterogeneous across EU member states.
State aid to firms should be used only when there are market failures. That is, when there are good reasons to believe that the market would not result in efficient and/or equitable outcomes. It should also be effective, and proportional to the aims it intends to achieve. In

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How to deal with Big Tech mergers

February 11, 2020

Big Tech mergers increasingly require regulatory authorities with enhanced toolboxes. To ensure genuine competition in the digital marketplace, novel theories of harm will need to be elaborated and applied. This column provides guidance on these issues, arguing that to properly investigate Big Tech mergers, competition law will need to restructure the standards and burden of proof.

Big Tech companies frequently acquire other firms, many of them start-ups.  In a recent prominent report, Furman et al. (2019) observe that “[o]ver the last 10 years the 5 largest firms have made over 400 acquisitions globally. None has been blocked and very few have had conditions attached to approval, in the UK or elsewhere, or even been scrutinised by competition authorities.”

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