That's a view shared by many progressive media critics, including an influential group of young antitrust professors who have been calling for stricter review of vertical mergers
, especially in media and entertainment.
The law-study also explains why it will usually be inherently profitable for a vertically-integrated firm to charge independent customers per-unit prices that exceed the marginal cost the integrated firm must incur to supply them while instructing its downmarket divisions to base their decisions on the assumption that the cost to them of the inputs/final products the firm's upstream division supplies them equals their marginal cost to the upstream division (92) and why most vertical mergers
that create firms that disadvantage independents in this way do not violate the specific-anticompetitive-intent test of illegality.
A significant obstacle to the study of vertical mergers
had been the identification of vertically related transactions.
Lubatkin (1983) suggests that vertical mergers
will most likely benefit from the schedule economies where two levels of production at two stages of a value chain are merged.
The fourth section analyzes horizontal and vertical mergers
Prior to the mid 1970s, the Supreme Court's antitrust legal decisions with respect to vertical restrictions and vertical mergers
were consistent with the harsh "Harvard" view.
Development of prediction models for horizontal and vertical mergers
On the Patterns and Wealth Effects of Vertical Mergers
, Journal of Business, 79, 2, 2006, pp.
With the recent antitrust trial pitting the Department of Justice against Microsoft, the Telecommunications Act of 1996, which set guidelines for local exchange carrier entry into long-distance telephony, and the many recent high-profile vertical mergers
Therefore, there is a need for scrutiny of vertical mergers
even in the absence of market power.
For example, without incorporating the concept of "an equally or more efficient competitor," the test for vertical mergers
focuses on the defendant's intent, (52) and the analysis for exclusionary practices that also offer efficiencies (which is raised in the discussion of the new economy) looks to whether a practice is "employed widely in industries that resemble the monopolist' s but are competitive.
But with the proliferation of vertical mergers
and the blurring of industry lines, the FTC and DOJ began fighting for jurisdiction, leading to review delays for the companies in question.