, in particular, should be viewed as anticompetitive only in an indirect way and under specific scenarios and sets of circumstances.
• Vertical Merger
Enforcement - Latest Trends and Developments
Opposing the merger forced the DOJ to argue against standing legal doctrine that favors vertical mergers
among firms that don't compete directly against each other.
Trade Comm'n, Remarks at Credit Suisse 2018 Washington Perspectives Conference: Vertical Merger
Enforcement at the FTC (Jan.
A major consequence of the Chicago School commentators' flawed economic theories with respect to vertical merger
enforcement is that this body of law has remained undeveloped for the past forty years.
Regarding foreclosure, so-called post-Chicago analysis has shown that vertical mergers
can lead to real foreclosure in input markets, thus enhancing monopoly profits with little or no efficiency benefits.
Pricing Techniques, Contract-Clause and Sales-Policy Surrogates for the Hierarchical Controls That Vertically-Integrated Firms Can Use to Induce Their Managers and Staff to Act in the Firm's Interest, and Vertical Mergers
In every vertical merger
or contractual agreement, there are two
Cultural integration may not be necessary or even advisable in a vertical merger
, in which the acquirer hopes to gain access to key resources of the target company (such as a coffee retailer buying a coffee-growing firm in another country), or when a company purchases a downstream distribution outlet (such as a plastics manufacturer purchasing a container store where many of its products are sold).
Spiller (1985) suggests that "site specific assets can increase the viability of a vertical merger
With the continuously growing debate on the application of vertical integration, it becomes more imperative for companies to know about the latest updates and developments in vertical merger
enforcement in order to help clients avoid unwanted risk and pitfalls in compliance.
Although the possibility that a vertical merger
may lead to coordination was recognized in some cases, (18) it was not retained as a key cause of concern in the cases examined so far.