Horizontal integration
Horizontal integration is the merger or acquisition of firms operating at the same stage of the production process and typically in the same industry. It combines two businesses producing similar products for the same market.
Real World
When Vodafone merged with Three UK in 2023, two mobile networks at the same stage of the telecoms industry combined, raising CMA concerns about reduced competition for 27 million customers.
Exam Focus
Always link horizontal integration to market concentration and potential CMA or regulatory intervention — this earns analysis marks.
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