Horizontal Merger Analysis

Horizontal merger analysis examines how combining two companies that operate in the same industry and market might affect competition. Regulators assess whether the merger would lead to less choice, higher prices, or reduced innovation for consumers. They consider factors like market share, potential for increased market power, and the likelihood of collusion. The goal is to ensure that the merger doesn’t harm consumers or create unfair dominance, maintaining a competitive marketplace. This analysis balances the benefits of business growth with the need to protect a healthy, competitive environment.