And the merger frenzy is not restricted to technology, media, communications, and other New Economy industries. Given this mind-boggling volume, it's time for antitrust regulators to take a broader look at what the megamerger boom is doing to the economy. When regulators have problems with a deal, the preferred solution is not to block the union but to force merging companies to sell off overlapping parts of their businesses. For one, they do not sufficiently weigh the possibility that a particular deal, even if it looks O.K. by itself, may trigger a merger spree among other companies in the same industry.
Dominant players can potentially squeeze their suppliers as well as their customers.
In farming, the continued concentration of agribusiness is putting pressure on independent farmers. This trend should only continue in the aftermath of Cargill Inc.'s July acquisition of Continental Grain Co.'s grain business, giving Cargill almost one-third of the U.S. grain export market. The merger boom affects far more than pricing. The absorption of smaller, less bureaucratic companies into larger, more rigid ones can potentially choke off innovation. Such a concentration of power may not be healthy for the democratic process.