When mergers lead to increased market power, they can harm society in several ways:
1. **Higher Prices:** With increased market power, companies may raise prices since there are fewer competitors to keep prices in check. This can lead to consumers paying more for goods and services.
2. **Reduced Innovation:** When a merger creates a dominant player in the market, there may be less incentive for innovation as the company may not feel the pressure to improve products or services.
3. **Less Choice:** Consolidation through mergers can result in reduced options for consumers. With fewer companies to choose from, consumers may have limited alternatives for their needs.
4. **Barriers to Entry:** Increased market power can create barriers to entry for new competitors trying to enter the market. This can stifle competition and limit opportunities for new businesses to thrive.
Overall, mergers that result in increased market power can negatively impact competition, consumer choice, innovation, and ultimately harm society by limiting options and potentially leading to higher prices.
