What are the potential antitrust issues that can arise from a merger or acquisition?

A potential antitrust issue arises when a merger or acquisition is made that creates a monopoly. A monopoly occurs when one company has exclusive control over an entire market, which can lead to higher prices, reduced quality, and stifled innovation. It can also lead to decreased competition in the market, allowing the monopolizing company to hold a stranglehold on the industry. In Washington, the Attorney General has the authority to review mergers and acquisitions to ensure that they do not create a monopoly or unreasonably lessen competition. Even if a company owns a majority of the market share, if it does not create a monopoly, then it can still be permissible under antitrust law. The Attorney General can also investigate potential mergers and acquisitions for potential price-fixing. Price-fixing is an agreement between companies to keep prices at a certain level, which is illegal under antitrust law. If found, price-fixing can result in fines, criminal penalties, or divestiture of assets. Finally, antitrust law also prohibits the creation of anti-competitive agreements between companies that are merging or being acquired. Examples of anti-competitive agreements can include the sharing of customer information or selling of a company’s assets to a competing company. Such agreements can lead to costly legal penalties and can be avoided by thoroughly researching and understanding the boundaries of antitrust law.

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What are the potential antitrust issues that can arise from a merger or acquisition?

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