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What are anti-competitive mergers, and why are they bad?

Not all mergers give rise to competition issues. Many mergers are either pro-competitive (because they positively enhance levels of rivalry), or are competitively neutral. In order to determine whether a merger is anti-competitive, CCCS will assess whether the merger leads to a substantial lessening of competition, e.g. resulting in an increase in prices above the prevailing level, lower quality, and/or less choices of products and services for consumers. If so, such a merger will infringe Section 54 of the Competition Act.



Updated Date

Last Updated on 31 March 2018