Mergers and market power: Should antitrust rule?
- California State Univ., Fullerton, CA (United States)
The Justice Department`s Guidelines don`t tell us very much about today`s (or tomorrow`s) electric market. However many electric utilities remain after this merger wave, competition will be forever changed. Earlier this year, the Federal Energy Regulatory Commission (FERC) issued a Notice of Inquiry (NOI) on merger policy, seeking advice on how to adapt old practices to a changing industry. Then, in July, it voted 3-2 to require a hearing on the proposed merger of Baltimore Gas & Electric and Potomac Electric Power. The majority expressed concern that applicants had defined relevant markets too broadly and inferred competition where market power might exist. The dissenting commissioners favored approval without hearing, noting that no intervenors had presented substantive claims that the merger would increase market power. Whether or not the FERC proceeds to a more activist policy on mergers, it must reevaluate the methods it uses to determine their effects on competition.
- OSTI ID:
- 525922
- Journal Information:
- Fortnightly, Journal Name: Fortnightly Journal Issue: 19 Vol. 134; ISSN FRTNE8
- Country of Publication:
- United States
- Language:
- English
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