Competition Finance

We provide expert advice, technical analysis, and economic support on financial aspects of market studies and investigations by competition authorities. This includes profitability analysis and price regulation remedy design. Importantly, we combine financial analysis with case-specific market dynamics, to ensure that results (or practicability and effectiveness of pricing-related remedies) are interpreted through the correct economic lens. We deliver our findings through impactful expert reports that are designed to withstand scrutiny, and effective communication with stakeholders.

We provide expert advice, technical analysis, and economic support on the economic and financial evidence base that is used to assess whether competition law has been breached. Should a decision be reached that a breach has occurred, we support firms and regulators during subsequent litigation, including damages quantification. We draw on our combined economic and financial expertise to focus primarily on supporting firms and competition authorities in pricing abuse cases (i.e. excess pricing, predatory pricing and margin squeeze) and follow-on damages.

For firms with large market shares, certain pricing behaviours are prohibited under competition law. If the risk of non-compliance is suspected to be material, we support firms and their legal advisors with compliance reviews of their current and future pricing strategies, to help mitigate the risk of future enforcement and litigation.

Competition authorities increasingly rely on financial analysis in merger reviews. In particular, financial expertise is critical for robust estimation of incremental margins for upward pricing pressure tests, and analysis of proposed target valuations, the former being more pertinent for sectors with complex cost structures, such as telecoms. We combine financial analysis with case-specific market dynamics to ensure internal consistency and importantly, that the evidence is interpreted through the correct economic lens.

We support firms, local authorities and competition authorities with commercial market operator (CMO) and market economy operator principle (MEOP) assessments for the purpose of subsidy control and state aid compliance. Both assessments require a combination of economic and financial expertise to determine whether a commercial entity would have provided the support in question (e.g. funding or guarantees) on comparable terms.