Mergers involving utilities present special problems because they involve monopolies that provide a vital service. When two monopolies merge, the end result is an even larger monopoly. Further, mergers make it more difficult to create competitive markets because by definition, a merger results in one less potential competitor. Mergers Concentrate Political and Economic Power. By definition, mergers result in larger companies.
Large corporations receive incredible access to politicians.
When Bill Gates testified before Congress concerning anti-trust charges against Microsoft, he was escorted to the hearing room floor by both senators from Washington. Mergers Exacerbate the Policing of Affiliate Transactions. Today ' s merging utilities also provide a host of non-regulated services, such as the marketing of power in wholesale and retail markets, appliance sales and service, and services related to heating, ventilation, air conditioning, electrical, plumbing, and mechanical contracting. Competitors suffer because the non-regulated holding company affiliates are receiving subsidies from ratepayers, allowing the affiliates to unfairly reduce prices to either take customers away from their competitors or to drive them out of business.