Vertical Merger Guidelines

Vertical Merger Guidelines are rules used by regulatory agencies to evaluate mergers between companies at different stages of the supply chain, such as a manufacturer and a distributor. The guidelines help assess whether such mergers might reduce competition, create monopolies, or harm consumers, particularly by controlling supply or raising prices. They consider factors like market power, potential efficiencies, and how the merger might affect prices and choices for customers. Essentially, they aim to ensure that these mergers do not unfairly restrict competition and serve the best interests of the market and consumers.