When one firm has more than 25 percent of the share of a market, it is in violation of the merger guidelines if it attempts to merge with another firm.

Question

Quizplus · Accepted Answer

The statement is not completely accurate. While the 25 percent market share benchmark is a factor considered by antitrust regulators in determining whether a merger would harm competition, it is not an automatic violation. The outcome depends on a variety of factors, including the specific market and industry involved, and the potential impact on consumers.

When One Firm Has More Than 25 Percent of the Share