Substantial Lessening of Competition

Substantial Lessening of Competition occurs when an action, like a merger or agreement between companies, significantly reduces competition in the market. This can lead to fewer choices for consumers, higher prices, or lower quality products or services. Regulatory authorities assess whether such business arrangements harm the overall competitiveness of the industry. If they find that competition is substantially reduced, they may block or impose conditions on the deal to protect consumers and maintain a healthy marketplace.