The boards of 2 major telecommunications companies recently agreed to a $16 billion merger that would create the world’s largest telecommunications company in the world. Although some agree that the synergy between these companies could be dynamic, others feel consumers could ultimately pay the price for the merger, depending on which company becomes dominant in the various service areas.
How would you answer the following questions:
- Why do you think consumer advocates have expressed concern over such merger possibilities?
- Other than pricing, what are some pitfalls that consumers might have to deal with when 2 major companies merge?
- What are the possible ethical dilemmas that are present in this example?