Case Study : Anti Competition Project

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ANTI-COMPETITION PROJECT 1. Find and research a case of a merger/acquisition. This can be a merger that was actually allowed under Federal law or one which was deemed illegal by the Justice Department and Federal Trade Commission (FTC). For this merger, determine the following: • Market share of the individual companies prior to the merger Response: Before this merger was planned in 2011, the market shares of the companies, AT&T and T-Mobile, were 32% and 11% respectively (Statista). • Number of firms operating in the market Response: There were seven firms operating in the market at the time of this proposed merger. The firms in order of highest market shares at the time are as follows: Verizon, AT&T, Sprint, T-Mobile, Metro PCS, US Cellular, and Leap Wireless (Statista). • Effect of the proposed merger (or allowed merger) on the concentration in the market Response: Two of the firms would have merged leaving only six firms remaining in this market. AT&T would have controlled nearly half of the market if it were to acquire T-Mobile with around 43% of the market share. • Pros/cons of the merger from the perspective of the government, firms, and consumers. Response: The government didn’t want to see AT&T gain too much control over the market and harm the competition. AT&T believed it could provide better service to millions of Americans and create more investments and more jobs for Americans (Ovide). Consumers may have agreed with AT&T’s notable points but there may have
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