The provision reaches mergers and acquisitions of stock or assets where the effect may be substantially to lessen competition or tend to create a monopoly. The standard is incipiency-based, reaching probable rather than actual harm.
Private plaintiffs may sue as well as agencies.
Alternative Names:
Section 7|Merger Provision
Why it Matters?
Private Section 7 actions by competitors and customers are available alongside agency enforcement and may proceed after a transaction closed, which means clearance by the agencies does not immunize a deal from private challenge. Antitrust injury requirements limit competitor standing, since a rival harmed by a more efficient combined firm suffers no antitrust injury. Divestiture is available as a private remedy.
Frequently Confused with
Related terms
Frequently asked questions
Does agency clearance immunize a deal?
What limits competitor standing?
