Global Business Today 7th Edition by Charles Hill

Exercise 13

Reread the Management Focus case on the European Commission and Media Industry Mergers, then answer the following questions:
a) Given that both AOL and Time Warner were U.S. based companies, do you think the European Commission had a right to review and regulate their planned merger?
b) Were the concessions extracted by the European Commission from AOL and Time Warner reasonable? Whose interests was the Commission trying to protect?
c) What precedent do the actions of the European Commission in this case set? What are the implications for managers of foreign enterprises with substantial operations in Europe?