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Horizontal Integration

What is the Justice Department policy regarding mergers involving firms involved in Horizontal Integration?

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Justice Department uses the HHI (Herfindahl-Hirschman Index ) to gauge market concentration. Market concentration is a useful indicator of the likely potential competitive effect of a merger. The general standards for horizontal mergers are as follows:

a) Post-Merger HHI Below 1000. The Agency regards markets in this region to be unconcentrated. Mergers resulting in unconcentrated markets are unlikely to have ...

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The solution answers the question below in great detail. Horizontal integration justice department policy are examined.