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RESEARCH PRODUCT

Economic Concentrations vs State of Competitive Space

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Achieving market performance is the main objective of companies in business transactions. Developing competitiveness and gaining a large market share is conditional on achieving the proposed objectives. A way to increase the market power is to do mergers or takeovers. They can be vertical or horizontal, depending on the type of activity realized by the parties. Effects resulting from the economic mergers made under certain conditions, can distort the competitive environment on the market, with a serious damage. This leads to the need to analyze them in the compatibility with the competitive environment. Permission to achieve a merger occurs after a comprehensive study of cases considering the peculiarities on each of them. The avoidance of obtaining the competition authorities permission to make the economic concentration before its implementation, is sanctioned. The paper presents an analysis of the impact of the effects of economic concentrations on the facilitation or worsening of sanctions provided by the legislative framework.