Question

In: Economics

If there is direct evidence of anticompetitive merger effects such as eliminating a head-to-head rival, which...

If there is direct evidence of anticompetitive merger effects such as eliminating a head-to-head rival, which step of the merger guidelines becomes less important?

a. determining if merger-related efficiencies outweigh anticompetitive harm

b. designing a divestiture remedy to restore competition lost by the merger

c. defining relevant markets

d. determining if one of the firms is going bankrupt

Solutions

Expert Solution

Answer C) Defining relevant markets

Explanation- When there is direct evidence of anticompetitive merger effects such as eliminating a head-to-head rival defining the relavant markets step of the merger guidelines becomes less important as it will not help to reduce the harm caused to other companies in same sector.


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