How Do Regulatory Authorities View Vertical Mergers?
Regulatory authorities, such as the Federal Trade Commission (FTC) and the European Commission, closely scrutinize vertical mergers to ensure they do not harm competition. While vertical mergers can offer benefits like improved efficiency and cost savings, regulators are concerned about the potential for anti-competitive behavior. For example, a vertically integrated company might restrict competitors' access to essential inputs or distribution channels, leading to a less competitive market.