Question

are mergers and acquisitions making the markets less competitive or are the emerging countries making the markets less competitive?  Is enough information available for wise antitrust enforcement?

Answer 1

Mergers and Acquisition :

In Most of the cases, mergers and acquisition are done to facilitate the company in the growth and not to kill the competition. let us discuss this with an example suppose there is a company making product x for which it requires raw material A which it purchases from a small local supplier, (Local supplier will sell products on profit) If Company acquires the business of supplier it will help it reduce the cost of production of X, as Raw material A will be available at cost price. Also, two companies get merge to become competitive with one other big company in the market.

Emerging Countries:

Emerging countries usually don't make the market less competitive, rather the make the market more competitive. Best Example is of mobile companies coming from emerging countries like VIVO, OPPO, MICROMAX etc. Due to these companies the big giant like Apple, Samsung, Nokia etc have to continuously work on their products in order to sustain in the market.