In the context of competition policy for digital markets, 'Killer Acquisitions' refer to:
A. Only horizontal mergers among equals
B. Acquisitions that always increase innovation
C. Acquisitions of innovative start-ups by dominant incumbents with the aim of discontinuing the target’s innovation to protect the incumbent’s market position
D. Only conglomerate mergers without any competitive effect
Answer: Option C
Solution (By JKSSB Mock Tests)
Killer acquisitions occur when a dominant firm acquires a potential competitor primarily to eliminate the competitive threat posed by the target’s product or technology rather than to develop it.
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