In 2013 the Federal Trade Commission (FTC) approved the merger of office supply superstores Office Depot and OfficeMax. The FTC concluded that the merger of the second and third largest office supply superstores was unlikely to substantially reduce competition in the retail office-supply market. The FTC noted the increased competition in the office supplies market. Competition comes from general superstores such as Wal-Mart and Target and club stores such as Costco and Sam’s Club. In addition, Amazon and other Internet retailers of office supplies compete with office supply superstores.

Question.

What is the role of competition in the regulation of mergers?

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