Federal regulators carefully scrutinize horizontal mergers because they result in the uniting of formerly competing firms and increase the monopoly power of the newly formed firm.

Question

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Horizontal mergers involve companies at the same stage of production in the same industry, which can reduce competition and increase monopoly power, thus attracting regulatory scrutiny to ensure they don't harm the market or consumers.

Federal Regulators Carefully Scrutinize Horizontal Mergers Because They Result in the Uniting