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Antitrust policy generally precludes the elimination of competition. For this reason, mergers are often with companies in allied but not directly related field.

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Q: How does antitrust policy affect the nature of mergers?
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What gives the government the power to regulate mergers between firms?

In contrast to competitive markets monopolies fail to allocate the resources efficiently. Policy makers in the government thus can respond to the problem on monopoly in many ways.Like for the regulation of mergers the government gets the power from antitrust laws. The antitrust laws are a collection of statutes aimed at curbing monopoly power.American antitrust laws are state and federal laws created to prevent monopolies. Antitrust laws apply to both businesses and individuals. The philosophy behind the laws is that trusts and monopolies can stagnate markets and prevent others from engaging in healthy market competition.


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