The Federal Trade Commission may prohibit a merger between Company A and Company B to avoid reduced competition, higher prices, and hindered innovation in the market.
The Federal Trade Commission (FTC) might forbid the merger between Company A and Company B because they sell similar products, which, when merged, could reduce competition in the market. Decreased competition could ultimately lead to higher prices, reduced product availability, and hinder innovation, contrary to the goal of promoting a competitive market.
Consequently, FTC aims to prevent mergers that could potentially create a concentrated market or enable a single firm to raise prices, as per antitrust regulations.
Competition, consumer welfare, and market regulations are key factors that the FTC considers when evaluating the impact of mergers on the marketplace.
