Unlike past merger trends, this one involves companies in complementary businesses that think they can find synergies. The urge to merge has swept the nation periodically, beginning with the last century. That trend toward monopolies left Congress, specifically worried about the power of oil and railroad companies to dominate the economy, to pass the Sherman Antitrust Act in 1890. The next wave during the Roaring Twenties led to oligopolies and more regulation. Then, beginning in the 1960s, companies began forming very diverse conglomerates by piecing together companies that didn't always have anything in common.
All sides agree that mergers often affect price, product development, competition and jobs.
They agree that jobs often are eliminated. But on a variety of the other effects, they disagree. The theory is that the more efficient merged company can offer lower prices. Over the years, our standard of living has risen. But, sometimes, the merger is more about executives who want to amass power than about making cheaper or better products, said Bert Foer, president of the American Antitrust Institute, a public interest group that supports strong enforcement of antitrust laws.