The U.S. Department of Justice (DOJ) merger guidelines call for the DOJ to examine proposed mergers, and approve or disapprove them. Mergers which are disapproved, and which are nonetheless consummated, face potential court challenge. The guidelines are based on the post-merger HHI. If the HHI after the merger is less than 1,000, the DOJ hardly ever disapproves the proposed merger. If the HHI after the merger is above 1,800, and has increased by more than 100 points, the DOJ is very likely to contest the proposed merger. Is this a reasonable stance on merger activity by the antitrust authorities?

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The Answer of The U.S. Department of Justice (DOJ) merger guidelines call for the DOJ to examine proposed mergers, and approve or disapprove them. Mergers which are disapproved, and which are nonetheless consummated, face potential court challenge. The guidelines are based on the post-merger HHI. If the HHI after the merger is less than 1,000, the DOJ hardly ever disapproves the proposed merger. If the HHI after the merger is above 1,800, and has increased by more than 100 points, the DOJ is very likely to contest the proposed merger. Is this a reasonable stance on merger activity by the antitrust authorities?

The US Department of Justice (DOJ) Merger Guidelines Call for the the DOJ