Merger Analysis Under the Antitrust Laws
Merger Analysis under the Antitrust Laws Today, the United States is in the midst of a merger wave. The number of mergers and acquisitions reported has increased dramatically as a direct result of the past financial crisis and economic downturn. During the period, the Federal Trade Commission along with the Justice Department has blocked a great number of potential mergers and acquisitions, helping save consumers “millions of dollars that they would otherwise have paid in higher prices.” (Vachris 223) Thus, to recognize and challenge anticompetitive mergers and acquisitions is such a difficult task that needs us to have a good understanding of the antitrust laws. What is antitrust law? Antitrust laws, also known as competition laws, are “laws that promote or maintain market competition by regulating anti-competitive conduct.” (Elhauge) First of all, the legislative purpose of antitrust laws is to maintain the effective competition in the market economy. Because effective competition requires operators to continue to pursue greater efficiency, develop more advanced technology and provide more high quality and inexpensive products to the market, it will let companies to gain opportunities to survive and develop in the market economy. Then, based on the past experience, people have a relatively clear consensus that monopoly behaviors may restrain and harm the market effective competition. For example, in 2009, when rumors were widely spread that Microsoft Corporation, the largest software manufacture in the world, would deploy the so called “black screen tactic” around the world, especially in China, it made me and various personal computer users worried. The reason “why Microsoft can be so arrogant is that it owns almost ninety percent of market share in the personal operating system market.”(Tan B2) relying on its flagship Windows operating system. Thus, I’m deeply aware of that the monopoly can restrain and
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