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The 1992 Guidelines were revised in 1997, almost concurrently with the FTC's challenge of the Staples-Office Depot merger in federal court. The 1997 Horizontal Merger Guidelines were replaced on August 19, 2010. [9] These guidelines introduced the concept of "upward pricing pressure" resulting from a merger between competing firms.
The Justice Department and the Federal Trade Commission on Wednesday released a set of long-anticipated draft updates to the nation’s merger guidelines, introducing potentially comprehensive ...
In 1982 the U.S. Department of Justice Merger Guidelines introduced the SSNIP test as a new method for defining markets and for measuring market power directly. In the EU it was used for the first time in the Nestlé/Perrier case in 1992 and has been officially recognized by the European Commission in its "Commission's Notice for the Definition of the Relevant Market" in 1997.
Mergers and acquisitions with HHI scores of 2,500 or above will be considered anti competitive and an in-depth analysis produced, if the scores are well above 2,500 they are considered to enhance market power they may only be allowed to progress when significant evidence is shown that the merger or acquisition will not increase market power.
Horizontal integration can result in economies of scale, economies of density [1] and be anti-competitive. When two companies with similar products or product characteristics merge horizontally, there is less competition. Horizontal mergers can also easily lead to a monopoly, reducing consumers' choices and indirectly harming consumers' interests.
Northern Securities Co. v. United States, 193 U.S. 197 (1904) horizontal merger under the Sherman Act; United States v. Philadelphia National Bank, 374 U.S. 321 (1963) the second and third largest of 42 banks in the Philadelphia area would lead to a 30% market control in a concentrated market, and so violated the Clayton Act §7.
The vast majority of significant competition issues associated with mergers arises in horizontal mergers. [1] A horizontal merger is one between parties that are competitors at the same level of production and/or distribution of a good or service, i.e., in the same relevant market. [2] There are two types of anticompetitive effects associated ...
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