Navigating Antitrust: Why Some Big Mergers Get Blocked
You see big mergers get blocked when regulators determine that consolidation would significantly reduce competition, raise prices, or stifle innovation. This guide gives you a clear, actionable view of how antitrust enforcement works, why certain high-profile deals fail, and what strategies can help you manage merger risks. You’ll explore legal thresholds, market analysis methods, recent enforcement examples, and region-specific rules that determine deal outcomes. What triggers antitrust authorities to block a merger? Regulators act when a proposed merger substantially increases market concentration or creates conditions that harm consumer welfare. They measure this using tools like the Herfindahl-Hirschman Index (HHI) , market share analysis, and competitor impact studies. For example, U.S. Department of Justice (DOJ) guidelines highlight concern when the post-merger HHI exceeds 2,500 and the increase is more than 200 points. In the Comcast–Time Warner Cable case, projected marke...