In U.S. v. El Paso Natural Gas, two gas pipeline companies in physically distinct markets, and not in competition, were not allowed to merge because it was possible that in the future they could compete with one another.

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This is true. In U.S. v. El Paso Natural Gas, the court ruled that the merger of two gas pipeline companies who were not currently in competition, but who may potentially compete in the future, would violate antitrust laws.

In US V El Paso Natural Gas, Two Gas Pipeline Companies in Companies