Reference no: EM133085229

Read the case and answer the questions that follow:

Tehno Communications, Lilliput World Limited, and Zaram Media Ltd are telecommunications companies. They provide wireless telephone services in Maddy city, north east of Canada. These three companies are very well known in Maddy city where they have provided wireless telephone service for many years. They provide similar services and charge almost identical rates for those services. In recent years, residents of Maddy city have come to resent Techno, Lilliput and Zaram because while their services have deteriorated, their rates continue to go up. When two smaller telephone service companies tried to establish in Maddy city offering lower rates, they were bought off and acquired by Lilliput and Zaram respectively. Three weeks ago, Techno, Lilliput, and Zaram started discussions about merging into a single company to be known as Three Amigos Wireless Communications. When fully established, the new company will serve the entire city of Maddy under a single management.

(a) Why should market competition regulators in Canada be interested the proposed merger between Techno, Lilliput, and Zaram?

(b) Identify and describe at least three anti-competition behaviours that could arise from the proposed merger of the three companies.