[1] Do you think it is correct for the European Commission to restrict mergers between American companies that do business in Europe? (For example, the European Commission vetoed the proposed merger between WorldCom and Sprint, both U.S. companies, and it carefully reviewed the merger between AOL and Time Warner, again both U.S. companies).
Comments: The European Commission has a right to regulate the European market, even if the regulation involves American companies. Those taking this perspective will suggest that such restrictions should be made independently of other considerations, even when the parent governments of the companies have approved the mergers. Others, however, argue that the European Commission does not have the right to restrict a merger that has been approved by parent governments. In doing so, the European Commission is in effect protecting domestic companies from foreign competition, and violating the spirit of the WTO.