How could the merger of two large phone companies cause them to come into conflict with federal Anti-Trust legislation?
There are a number of ways for the companies to come into conflict with Anti-Trust legislation, which could include:
- Being seen to stifle competition
- Price fixing
- Not adequately disclosing the details of the merger
- Attempt to restrict trade
- Creating a market monopoly
Of all the possibilities outlined above, the creation of a situation whereby the merged companies control too much of the market share in a specific geographical area or the country, is the one most likely to put them in violation of the law. Such situation will be seen as a creation of a market monopoly and most likely would result in the proposed merger not being approved in the first place.