The market share of the combined firms is rarely an important factor in determining whether a proposed transaction is likely to be considered anti-competitive.

Question

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The market share of the combined firms is often a crucial factor in determining whether a proposed transaction is likely to be considered anti-competitive. The higher the market share, the more likely it is that the combined entity will have significant market power to raise prices, limit output or choice, or exclude competitors. Thus, the competition authorities often look at the market share of the merged firms, as well as other factors such as barriers to entry, countervailing buyer power, and efficiencies, to assess the potential anti-competitive effects of the merger.

The Market Share of the Combined Firms Is Rarely an Important