It's been less than eight months since we've starting walking the Halls of Justice and in the eight months much has happened. A new wave of mergers, many of which are concentrated in a few key industries, has swept across the business landscape, and, at least from our somewhat egocentric perspective, landed in our office for review. Rather than use an adjective as some in this audience may be tempted to do, I will discuss some of our thinking and our actions. The specific areas I'd like to discuss are high tech and telecommunications, with some mention of health care and defense. I don't view that as a tough question.
Antitrust enforcement is designed to promote innovation and efficiency.
Innovation, whether in the form of improved product quality and variety or of production efficiency that allows lower prices, is a powerful engine for enhanced consumer welfare. By intervening where mergers are likely to mute rivalry or impede entry, antitrust can work to create an economic environment in which the entrepreneurial initiative can flourish. In analyzing mergers involving high tech industries, we, of course apply the 1992 Horizontal Merger Guidelines. The Guidelines do not dwell on issues of technological change, innovation, or intellectual property. Nevertheless, the Guidelines provide a framework to take them into account in terms of market definition, barriers to entry and competitive effects.