Mergers and Joint Ventures

Mergers can benefit the economy, allow firms to reduce costs, improve products and reduce prices. Mergers can also harm competition and consumers by facilitating collusion, creating opportunities for unilateral price increases, reducing incentives to innovate, and creating a market structure that allows the merged firm to exclude or artificially disadvantage rivals or suppliers. Regarding current U.S. merger policy, the AAI believes change to Section 7 of the Clayton Act is not needed if the agencies take a more aggressive approach that recognizes the statute’s incipiency mandate, protects potential competition, and consequently challenges a higher proportion of proposed mergers.