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Series

All Faculty Scholarship

Antitrust and Trade Regulation

2018

Mergers

University of Baltimore Law

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Full-Text Articles in Law

The Merger Incipiency Doctrine And The Importance Of "Redundant" Competitors, Peter C. Carstensen, Robert H. Lande Jan 2018

The Merger Incipiency Doctrine And The Importance Of "Redundant" Competitors, Peter C. Carstensen, Robert H. Lande

All Faculty Scholarship

The enforcers and the courts have not implemented the merger incipiency doctrine in the vigorous manner Congress intended. We believe one important reason for this failure is that, until now, the logic underlying this doctrine has never been explained. The purpose of this article is to demonstrate that markets’ need for “protective redundancy” explains the incipiency policy. We are writing this article in the hope that this will cause the enforcers and courts to implement significantly more stringent merger enforcement.

To vastly oversimplify, the current enforcement approach assumes that if N significant competitors are necessary for competition, N-1 competitors could …