"We the People" say, No to the mergers when the mergerd corporation would own and operate 55% of a market; a
monopoly!
Many mergers benefit competition and consumers by allowing
firms to operate more efficiently. But some mergers change market dynamics in
ways that can lead to higher prices, fewer or lower-quality goods or services,
or less innovation.
Section 7 of the Clayton Act prohibits mergers and acquisitions when the effect "may be substantially to lessen competition, or to tend to create a monopoly."
The key question the agency asks is whether the proposed merger is likely to
create or enhance market power or facilitate its exercise.
The greatest antitrust concern arises with proposed mergers between direct competitors (horizontal mergers).
The FTC and the DOJ have developed Horizontal Merger Guidelines that set out the agencies' analytical framework for answering that key question, and have provided a Commentary on the Horizontal Merger Guidelines that provides many specific examples of how those principles have been applied in actual mergers reviewed by the agencies.
The greatest antitrust concern arises with proposed mergers between direct competitors (horizontal mergers).
The FTC and the DOJ have developed Horizontal Merger Guidelines that set out the agencies' analytical framework for answering that key question, and have provided a Commentary on the Horizontal Merger Guidelines that provides many specific examples of how those principles have been applied in actual mergers reviewed by the agencies.
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