What would be a defense that merging companies could use if the Justice Department tried to block their merger?

Question

What would be a defense that merging companies could use if the Justice Department tried to block their merger?​

Quizplus · Accepted Answer

The merging companies could potentially use all three defenses mentioned. The failing company doctrine argues that a merger should be allowed if one of the companies is failing and would otherwise go out of business. The definition of the product market is important because it helps to determine whether the proposed merger would create a monopoly or substantially reduce competition in that market. If there is evidence that the market is still competitive despite the proposed merger, the Justice Department may be less likely to block it. Finally, the ability of new companies to enter the market is relevant because it suggests that the market is not monopolistic and that consumers have choices. If the merging companies can demonstrate that there are low barriers to entry and that new competitors could easily enter the market, this could also make it more difficult for the Justice Department to block the merger.

What Would Be a Defense That Merging Companies Could Use