(39) In a 1995 speech, then-Deputy Assistant Attorney General Steven Sunshine interpreted the four prohibitions against vertical mergers
in the 1984 Guidelines as corresponding to three general categories of vertical merger
harm--"foreclosure/raising rivals' costs, increased anticompetitive coordination, and regulatory evasion." The first of these theories is essentially a tying story in the context of vertical rather than horizontal complements.
(19) There are also likely to be significant efficiencies with vertical mergers
that reduce the likelihood that the agencies will challenge them.
(28) See Klass & Salinger, Do New Theories of Vertical Foreclosure Provide Sound Guidance for Consent Agreements in Vertical Merger
Cases?, 40 ANTITRUST BULL.
There is little evidence that an activist antitrust policy against vertical mergers
is as risky as Areeda and Turner suggest, or that it is likely to jeopardize efficiency and diminish economic welfare.
In this LIVE Webcast, a seasoned panel of thought leaders and professionals brought together by The Knowledge Group will present to the audience an in-depth analysis of the fundamentals as well as recent developments in vertical merger
Legal experts noted that Trump's lawsuit against AT&T is the first time in decades the federal government has challenged the vertical merger
Bork's view of vertical mergers
was largely dictated by his position on vertical contractual restraints.
Yesterday's favourable ruling for AT&T, which Fitch previously anticipated, should provide regulatory support for future vertical mergers
with limited competitive overlap.
This Feature disputes the Chicago School account outlined above and explains instead that some (but not all) vertical mergers
raise substantial competitive concerns.
and acquisitions in the biopharmaceutical industry have increased steadily, and analysts predict that large industry players will continue acquiring small firms through 2018.
Wall Street analysts expect the results of the trial will determine if more telecom and entertainment companies will pursue ambitious vertical mergers
. "This could direct the future path of the industry," said Steven Salop, a professor of economics and law at Georgetown University Law School.
But a government defeat would give AT&T full control over one of the world's largest media and entertainment conglomerates, and open the floodgates to a wave of new vertical mergers
Justice may have little power to stop.