The government is likely to block a merger if

Question

Quizplus · Accepted Answer

The government is most likely to block a merger if it is established that the merger would substantially reduce competition. This is because the government's main goal in regulating mergers is to promote competition and prevent the formation of monopolies or oligopolies that have the power to raise prices and reduce output, harming consumers. If a merger would result in a substantial reduction in competition, the government may intervene to prevent it from happening.

The Government Is Likely to Block a Merger If