Antitrust & Competition Economics
FTI Consulting and its subsidiary, Compass Lexecon have provided expert advice and testimony in hundreds of complex antitrust actions and M&A transactions. We apply cutting-edge industrial organisation theory and use sophisticated economic and econometric analyses to dissect and define the complex issues that define these engagements. We have evaluated proposed mergers and acquisitions on behalf of both government agencies and private entities. Using rigorous, state-of-the-art analytical methods applied to complex data, we evaluate the likely effects of proposed mergers and acquisitions on prices, costs and competition. Our professionals also regularly assist both defendants and plaintiffs in antitrust litigation, including cases involving price fixing, predatory pricing, bundling and various forms of allegedly exclusionary conduct. An integral part of our role in many of these cases involves the estimation of lost profits or damages from elevated prices and output restrictions.
Our Service Offerings
There are basically two components that are key to market definition — which products are in a market and the geographical scope of that market. Market definition is important because, depending on the scope of the market, a company may be found to be dominant. FTI Consulting and subsidiary, Compass Lexecon have competition economists with significant experience in advising companies on competition investigations. For companies being investigated for abuse of dominance, our economists advise on how best to define the market or how best to defend a company’s position when the competition authorities advance a particular market definition. For companies suspecting abuse of dominance from a competitor, we again assist in defining the relevant market as a precursor to further work on tackling the dominance.
Abuse of Dominance
Companies that have a very high market share and where there are significant barriers to new entry may be considered dominant. They could be considered to abuse their dominance if commercial practices exclude others from the market or if they exploit the dominant position to the detriment of the market. FTI Consulting and Compass Lexecon’s energy team has competition economists with significant experience in advising companies on competition investigations. For companies being investigated for abuse of dominance, our economists advise on how best to defend a company’s position against allegations of abuse and provide economic analysis to support the position.
Companies can distort fair competition by cooperating with competitors, fixing prices or dividing the market up so that each has a monopoly in part of the market. On behalf of our clients — companies, regulators, even governments — FTI Consulting and subsidiary, Compass Lexecon provide advice to companies being investigated for having an anti-competitive agreement. Our credentials are without peer. Because we have the top professionals in competition economics and energy economics, we can analyse the anti-competitive behaviour, identify the wrongdoers and provide regulatory solutions or legal recommendations.
Unlike abuse of dominance or anti-competitive agreements, a sector inquiry does not investigate a particular allegation but is a review into how well competition is working in the market. Sector inquiries can lead to remedies being imposed or recommendations made which change the functioning of the market, or indeed, lead to competition investigations into particular companies. FTI Consulting and subsidiary, Compass Lexecon have supported clients in markets facing a sector enquiry through strategic advice and supporting economic analysis. We have experts who have previously worked with the competition authority and can advise authoritatively drawing on experience as well as economics.