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1 Dublin L. & Pol. Rev. 33 (2020)
The Siemens/Alstom Merger Case: How European Merger Policy Respond to Global Competition

handle is hein.journals/dublpr1 and id is 42 raw text is: DUBLINLA WAND POLITICS REVIEW NOTE: THE SIEMENS/ALSTOM MERGER CASE: HOW EUROPEAN MERGER POLICY RESPOND TO GLOBAL COMPETITION Liran Pang, Durham University ABSTRACT: The European Commission's block on the Siemens/Alstom merger triggered an outcry from France and Germany, who jointly proposed the 'Franco-German Manifesto for a European industrial policy .fit .for the 21st Century' as a response. They argued that facing global competition, in particular the risingpower of China, the creation of the 'European Champions' should be the first priority, which requires the current competition law regime to be relaxed. This proposal triggered criticisms from competition law scholars, yet has gained certain support across Europe. Since then, it has reignited the discussion about the relationship between powerful firms, innovation and competition policy. This note discusses the concerns behind the Siemens/Alstom Merger case and the Franco-German Manifesto, and argues that the idea that a closed market with centralised power being most conducive to innovation is not that convincing with a closer look at that industry, and the long-established principle of promoting innovation via a competitive market is the most reliable path for both the European industries and European consumers. 1. The Siemens/Alstom Merger Case The planned merger between Siemens and Alstom, the biggest railway manufacturers in Germany and France respectively, was announced in September 2017. With support from the French and German governments, the merger aimed to create a super player in the high-speed railway market to fend off challenges from China's CRRC, the state-owned railway manufacturer which has developed at an incredible speed due to the massive domestic market and state support. European firms complain that their Chinese rival has benefited from state subsidies, aggressive industrial policies and protection in its domestic market. Thus, Siemens and Alstom tried to link up to become a new 'Railbus' to defend the European market from the Chinese 'predator' in the same way that Airbus was founded with the intention of challenging U.S. dominance in the aviation industry.1 1 A background of this case sees in a Financial Times report, 'EU blocks Siemens-Alstom rail merger, Le Maire says/ French finance minister brands decision 'an economic mistake' <https://www.ft.com/content/cd35e760-29f5-1 1e9-a5ab- ff8ef2b976c7> Volume 1 (1) 2020

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