In FTC v. Proctor & Gamble, the Supreme Court blocked the merger of Clorox and Proctor & Gamble, even though the companies did not make the same products. The court based its decision on which legal theory?

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The Supreme Court's decision in FTC v. Proctor & Gamble was based on the legal theory of potential competition, which refers to the likelihood that a merger or acquisition could significantly reduce competition in the future, even if the two companies involved do not currently compete directly. The court determined that the merger between Clorox and Proctor & Gamble would eliminate a potential competitor in the future, which could negatively impact competition and consumer welfare. Therefore, the court blocked the merger under antitrust laws.

In FTC V Proctor & Gamble, the Supreme Court Blocked the Merger