Tid-Bit: Seagate shrinks competition in Samsung acquisition?

On 19th October 2011 the European Commission approved US based Seagate Technology’s acquisition of the Hard Disk Drive business of South Korean giant Samsung Electronics, although it will further consolidate the market. The primary concern in deciding the matter was the level of competition that will remain in the marker if such acquisition is permitted. The Commission found that there would be no effect on the market for external hard disk drives in the EEA as non integrated suppliers of external hard disk drives would retain sufficient alternative sources for hard disk drives. “The main impact of the transaction is on the markets for 3.5" desktop hard disk drives and 2.5" mobile hard disk drives where the investigation revealed that Samsung is not a particularly strong competitor,” reasoned the official statement. It further stated that this will, in fact, allow competitors to switch suppliers in the market.

[This post has been authored by Antara Roy, Student, 5th Year, B.A./B.Sc. LL.B., WBNUJS]