Vertical mergers are likely to be challenged by antitrust regulators for all of the following reasons except for
A) An acquisition by a supplier of a customer prevents the supplier's competitors from having access to the customer.
B) The relevant market has few customers and is highly concentrated
C) The relevant market has many suppliers.
D) The acquisition by a customer of a supplier could become a concern if it prevents the customer's competitors from having access to the supplier.
E) The suppliers' products are critical to a competitor's operations

Question

Quizplus · Accepted Answer

Vertical mergers that involve many suppliers are less likely to be challenged by antitrust regulators because there is still competition among suppliers in the market. A lack of competition among customers or a critical product/service being controlled by one entity are more likely to be the focus of antitrust scrutiny.

Vertical Mergers Are Likely to Be Challenged by Antitrust Regulators