Alyssa asked in Social ScienceEconomics · 1 decade ago

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival?

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power trough this merger. Can you do this? How? What evidence might you bring to the hearing?

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  • 1 decade ago
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    It would be almost impossible o try and claim that your market power didn't increase (this assumes your rival is close to your size). However, you could argue that market power did not increase so much as to create a monopoly situation r hurt the consumer.

    For example, Microsoft's deal with Yahoo (although not a merger) tremendously increased their Search Engine market power. However, Google has such a dominant position that the deal was allowed. Without the deal, both Microsoft an Yahoo could continue to lose market share, which would be worse for consumers.

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