U.S. antitrust law is complicated, but current efforts to block a merger between grocery retailers Albertsons and Kroger may not fit the bill. Current triggers under the law include:
Market share of 70 percent or more, or less than 50 percent if barriers limit competition. Barriers to entry prevent competition. When a firm can raise prices above competitive levels without losing market share. The use of predatory practices. A Herfindahl-Hirschman Index score of 2,500 or higher, or possibly 1,500 to 2,500.
The proposed Albertson/Kroger merger would result in a firm still smaller than Walmart. Under the Rule of Three theory, firms consolidate until three firms dominate a market. GM, Ford and Chrysler once comprised the B...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
