What are the potential antitrust issues associated with mergers and acquisitions?

Mergers and acquisitions (M&A) can raise antitrust issues when they result in the creation of a corporation that has too much power in the market, resulting in an unfair advantage over its competitors. This could lead to the decreased competition in the market, higher prices, and a decrease in service quality. In South Carolina, antitrust laws are governed by the South Carolina Unfair Trade Practices and Consumer Protection Act. This Act prohibits any form of anti-competitive behavior, which includes mergers and acquisitions that would create a monopoly or reduce overall competition in the market. When M&A activities take place, the government may take a closer look to determine if the resulting corporation will hold too much of the market share, and if it will impede on the competition of other businesses in the industry. Another potential antitrust issue associated with M&A activities is that the larger corporation may have the ability to negotiate with suppliers and manufacturers for better deals, leaving smaller, more local businesses unable to compete. This can create an unfair playing field and leave the smaller companies unable to compete on a level playing field. In order to protect consumers, the state and federal government will review the activities of businesses and will take action if any anti-competitive behavior is taking place. This can include breaking up the larger corporation, or forcing them to make changes to their business practices in order to restore competition.

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What are the potential antitrust issues associated with mergers and acquisitions?

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