Mergers often raise antitrust concerns. This is particularly the case when direct competitors combine to form a much larger company – referred to as a horizontal merger. Because these sorts of mergers eliminate competitors and consumer choice, they can lead to a significant increase in market concentration and pose anticompetitive risks. At its core, regulatory policy on mergers often seeks to avoid a reduction in consumer choice, and to avoid market restructuring that weakens competition.

The announced AT&T and Time Warner Inc. deal does not create any of these risks.

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