U.S. antitrust regulators may approve a horizontal transaction even if it results in the combined firms having substantial market share if it can be shown that significant cost efficiencies would result.

Question

Quizplus · Accepted Answer

This is known as the "efficiencies defense" and is recognized by U.S. antitrust regulators as a valid reason for approving a horizontal transaction with substantial market share. However, the cost efficiencies must be proven and must outweigh any potential negative effects on competition.

US Antitrust Regulators May Approve a Horizontal Transaction Even If