Fighting algorithms with algorithms: How technology is changing merger control
For decades, merger control was a battle of narratives. Today, it is increasingly a battle of processing power. From the UK CMA's proprietary software scanning for non-notified deals to the US DOJ expanding algorithmic expertise, the direction of travel is clear: regulators are deploying technology to move faster and test analysis more rigorously. Advisors who rely solely on manual processes are already playing catch-up.
The CMA is a prime example of how merger review is shifting. Since launching its “4Ps” approach to merger control last year (pace, predictability, proportionality, and process), it has introduced a raft of measures aimed at speeding up the UK review process. Chief among these is a new KPI to complete pre-notification within 40 working days and to clear straightforward mergers within 25 working days. While this is welcome news for dealmakers, it remains to be seen how much this will increase the burden on advisors to provide comprehensive information within compressed deadlines.
The CMA’s Mergers Charter frames this faster review as a two-way street. It expects businesses to “streamline the provision of information and analysis while ensuring comprehensive responses to relevant lines of inquiry.” This creates an inherent tension between speed and depth, which advisors are expected to resolve.
The CMA’s commitment to use tech to identify non-notified deals is part of a global trend. The Canadian Competition Bureau has developed its proprietary 'Eagle Eye' tool to analyse local markets, and the DOJ's Antitrust Division has cited merger investigation as a primary use case for its machine learning tools.
When the regulator is using proprietary software to analyse markets you haven't even mapped yet, your client is already on the back foot. Sloc Local was built for this environment. Our algorithms deliver defensible competition analysis in minutes to the transparent, economically rigorous standard that regulators expect. We ensure your response is as robust as the tools the regulator is using to test it.