Concern over potential anticompetitive unilateral effects

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Howard and Rush each have very popular radio programs. Their programs happen to be the two most popular ones for listeners who value hearing provocative and outrageous statements. The two programs are provided free of charge to listeners, with revenue being earned from advertisers. The two programs plan to merge, and you are an attorney analyzing this proposed transaction for the FTC. Although the parties claim that Howard and Rush do not really compete against one another, your investigation has found that they do (for example, when Howard is on vacation the audience share of Rush increases dramatically, and vice-versa). Economists working for Howard and Rush argue -convincingly, it turns out-that, post-merger, listeners will continue to receive both programs free of charge. Moreover, your investigation has found (surprisingly) that no advertiser would be willing to pay more to advertise on one of these programs even if the other disappeared.

Questions

Is there any cause for concern over potential anticompetitive unilateral effects from this merger? If not, why not? If so, how?

Reference no: EM133573957

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