BUS 340 Lecture Notes - Lecture 29: Federal Trade Commission Act Of 1914, Clorox, Clayton Antitrust Act
Document Summary
1-horizontal mergers ex philly bank case. Mkt share size ex - united and continental merging to largest airline. Mkt share concentrating with more mergers losing competition. Has mkt been contracting or expanding in competitions. 2-vertical mergers as common as horizontal. Merger of two companies within the same chain of supply or distribution. Ex arrow (reynolds) foil v. ftc. Barrier to entry to become a new competitor. Where merger would raise barriers to entry or disadvantage other firms. When to challenge a merger: consider probably competitive effect in market of purchaser and supplier, especially where either controls 10% or more of the market. If either company has 10%+ of respective mkt share before merger, doj intervenes. All the companies they own are in different markets and can get really really large. Creates danger of reciprocal buying (every company in conglomerate only buys what they need from each other) 4-produciton extension mergers extending line of products.
