Day

July 14, 2025

The U.S. Supreme Court and the Merger Efficiency “Defense”

Firms’ principal motives for merging are not to increase market power, but rather to improve firm outcomes through changes in internal operations or structure. Of the 17000+ mergers that occur annually in the U.S., 90% or more have no expectation of an anticompetitive price increase or output reduction. They can profit only by better performance....
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