Antitrust Authorities

Question 1

Antitrust Authorities

Answer 1

Government bodies that monitor and regulate business activities to ensure fair competition

Question 2

Power of antitrust authorities

Answer 2

• Ability to block mergers or acquisitions if they believe it will lessen competition and create a monopoly (single company dominates a market)
• Ability to intervene
• Negotiation Power

Question 3

Reasons for blocking acquisitions

Answer 3

• Preventing excessive market power
• Protecting consumer choice
• While firms want to merge (too many companies for amount of demand)
  **for a firm the threat of antitrust intervention is a major external threat