Competition Bureau would never approve a proposed merger between two firms that could significantly increase the newly merged firm's market power even if the efficiency gains from the newly merged firm could make consumers better off.

Question

Quizplus · Accepted Answer

The statement is incorrect. The Competition Bureau may still approve a proposed merger if the efficiency gains from the newly merged firm outweigh the potential harm to competition, even if it increases the merged firm's market power. The Bureau considers both the potential benefits and drawbacks of a merger before making a decision.

Competition Bureau Would Never Approve a Proposed Merger Between Two