Antitrust Law and Mergers - Research Paper Example

“Recently, The Fair Trade Commission of South Korea gave its approval for the proposed merger agreement of three telecommunication units. Consequently, the three units would now be operating under the LG Group. Owing to the development, the position of LG Telecom Co as a competitor of bigger players would be enhanced. This particular approval, which is related to the Antitrust Law, is projected to facilitate the smaller telecom companies of South Korea to thrive amidst the highly competitive scenario of the country’s (South Korea) markets.

”This particular approval of the merger is in total conformity with the provisions of Chapter 46 of the Antitrust Law. From a broader perspective, this Law strives to create an ambiance in the market that is fully conducive for the growth and prosperity of smaller firms. To attain this scenario, the Antitrust Law imposes several restrictions on the bigger players, for preventing them from acting in a way that is detrimental to the survival of smaller companies. The Law scrupulously examines all planned merger agreements.

It approves them only after ensuring that these mergers in no way lead to a market scenario of an abnormally high market share being present with anyone's business unit/business group. Also, as observed in this development in South Korea, the Antitrust Law encourages mergers in facilitating the growth of small business units.