Competition in Times of a Pandemic

Abstract

Numerous markets are affected during the coronavirus pandemic by corporate closures and insolvencies, mergers and reduced incentives for start-ups. In addition, the surge in digitisation due to policies intended to reduce personal contacts is expected to lead to an increasing significance of digital markets. Sustained structural changes with adverse effects on competition are therefore to be expected against the backdrop of existing trends toward increasing market power and concentration in certain sectors of the economy. With this in mind, the economic policy responses to the challenges posed by the crisis should consider the requirements of long-term competition. Mergers and state aid control without any substantive legal concessions as well as the flanking of state shareholdings in companies with measures to promote competition would contribute to this.