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Asked by Tommy Clobes on Jun 18, 2024

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The Celler-Kefauver Act made vertical mergers legal, provided each firm does not have more than 30 percent of its relevant market.

Celler-Kefauver Act

The federal law of 1950 that amended the Clayton Act by prohibiting the acquisition of the assets of one firm by another firm when the effect would be less competition.

Vertical Mergers

Mergers between companies that operate at different stages of the production processes in the same industry, intended to increase efficiencies or capture more of the supply chain.

Relevant Market

The market in which a particular product or service is sold, considering the competition, substitutes, and area in which it operates.

  • Pinpoint and grasp the legal guidelines that dictate mergers, market dominance, and competitive maneuvers.
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Rinki sehrawatJun 24, 2024
Final Answer :
False
Explanation :
The Celler-Kefauver Act was designed to strengthen antitrust laws by restricting anti-competitive mergers and acquisitions, but it does not specifically make vertical mergers legal based on a firm having less than 30 percent of its relevant market. It primarily aimed to close loopholes regarding asset acquisitions and focused on preventing mergers that could reduce competition, without setting specific market share thresholds.

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