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by LegitShady 1367 days ago
I think thats too draconian. It make sense to say, restrict acquiring a company if it has an effect on the competitive landscape, but not necessarily restrict buying companies totally.

Lets say I have a company and want to develop some capacity - I could start from scratch, or I could buy a company that already does it well. If everyone starts from scratch that would be a whole lot of society's resources spent doing repeat work, but it also represents an opportunity to learn new things and try new strategies.

hard to say if its a net good or bad. but restricting companies purchasing companies probably wont happen.

1 comments

It was a thought experiment. I agree, instead of disallowing purchases altogether, lowering the threshold might be good enough. There is already anti-conpetitive checks when huge mergers are attempted. I think I'm really trying to suggest that the bar should be a lot lower to trigger those checks, or outright disallow them. IOW mergers/acquistions don't have to be "huge" to be anti-competitive