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Fair competition is critical to a freemarket area and competition spurs innovation and assures that resources are allocated efficiently. Because the free market cannot flourish without competition, a merger that decreases competition can undermine a freemarket. Thus, antitrust laws set limits on companies. Specifically, section seven of the clayton act prohibits mergers that lessen competition or tend to create a monopoly. This is meant to strike a balance between companies freedom to organize their affairs. Two of the four legacy carriers, American Airlines, which is then in chapter 11 bankruptcy since late 2011, and u. S. Airways, announced plans to merge. It would be called American Airlines but be led by u. S. Heirs chief executive officer. Chief executive officer. This is a highly technical inquiry and the department should be guided surely by the facts and the law ....
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