The Justice Department will generally challenge a horizontal merger if the postmerger Herfindahl index is less than 1,000.

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The Justice Department generally considers markets with a post-merger Herfindahl-Hirschman Index (HHI) of less than 1,000 to be unconcentrated, and thus, it is less likely to challenge such mergers. Concerns typically arise with higher HHI levels, indicating increased market concentration.

The Justice Department Will Generally Challenge a Horizontal Merger If