Visa Plaid Merger Agreement
But the Agency must also strive to create a strong environment for merger implementation, as planned by Congress – the Biden administration should direct the DOJ to implement clear merger rules. In accordance with Congress` order on aggressive implementation, merger laws were vigorously enforced by federal officials to avoid excessive concentrations of risk and private power. Today, however, the DOJ`s poor and unforeseen implementation of mergers has increased systemic risk in our economy. While the Justice Department had already announced last month its intention to block the acquisition, the agency missed the opportunity to stop similar monopolistic mergers, just as obviously damaging. Strict enforcement of mergers can also ensure the existence of alternative services to consumers and incentivize companies to invest in their own businesses rather than participating in cheap growth through acquisition. The Supreme Court upheld this finding as a fundamental objective of aggressive merger enforcement in a 1963 decision, stating that growth through “internal expansion is socially preferable to growth through acquisition.” Big business and their advocates in Washington argue that they still operate under the discipline of market forces. Google, for example, likes to explain that if someone manages to create a better search engine, customers can use it freely. But it`s mostly tech companies that have learned to prevent competition by taking on emerging rivals. In addition to brand mergers, such as Google`s acquisition of YouTube or Instagram and WhatsApp`s purchases of Facebook, big tech companies have bought dozens of small businesses that may have become viable competitors. In October, an investigation by the House Justice Committee concluded that Facebook, in particular, had adopted a strategy to “acquire, copy or kill” in its dealings with potential competitors.