Alphabet, the parent company of Google, announced it has reached an agreement to buy Fitbit in an all-cash deal for $2.1 billion. The acquisition is subject to U.S. Department of Justice (DOJ) approval. The DOJ has expressed concerns regarding the Fitbit user data that Google will have access to if the acquisition is completed, especially data sold to Google without the consent of Fitbit users. The wearable technology industry has also expressed concerns that the merger would create an industry dominated by only two firms, Google and Apple.
Source: Gabriela Barkho, "DOJ Probes Google's Fitbit Acquisition Over Consumer Health Data Concerns," observer.com, December 11, 2019.
-Refer to the Article Summary. A merger between two competitors such as Google and Fitbit may ultimately be approved by the Department of Justice and the FTC if the two companies can substantiate ________ as a result of the merger.

Question

Quizplus · Accepted Answer

Increases in economic efficiency are often a key consideration for regulatory bodies like the Department of Justice and the FTC when evaluating mergers. They look for benefits such as cost reductions, improvements in technology, or enhancements in product offerings that can result from the merger, which can ultimately benefit consumers.

Alphabet, the Parent Company of Google, Announced It Has Reached