Nonmarket Strategy for Merger Reviews

Mergers and acquisitions can involve a significant review by antitrust authorities; however, neither the business strategy nor the corporate political strategy literature has fully explored the antitrust dimensions of merger activity. This article considers the ability of corporate political activity to influence antitrust policy by setting out some determinants of antitrust-review outcomes. The analysis consists of two main contentions: (a) Antitrust institutional independence plays a fundamental role in determining the effectiveness of corporate political activity, and (b) domestic mergers with international competitive effects are more likely to receive positive antitrust reviews.