Antitrust Regulations and Their Impacts on M&A

Antitrust regulation plays a critical role in the facilitation of mergers and acquisitions (M&A), particularly in the U.S. system where the government's influence can either promote or obstruct potential deals. Historically, the focus of these regulations has centered on protecting consumer welfare, primarily assessing whether prices would increase due to a merger. The Biden administration has adopted a more skeptical approach regarding mergers, emphasizing concerns about market competition beyond just pricing, and even considering the impact on industry players like authors in the publishing sector. This shift has resulted in a chilling effect, discouraging many companies from pursuing mergers and thereby potentially stifling overall market activity.