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The FTC may prohibit the merger of Company A and Company B to uphold competition between widget makers, preventing increased prices and decreased product quality.
The Federal Trade Commission (FTC) might forbid the merger between Company A and Company B to promote competition between widget makers. Mergers that result in a concentrated market or enable a single firm to raise prices can hinder competition, leading to higher prices, reduced availability of goods or services, lower product quality, and less innovation. By preventing the merger, the FTC aims to maintain a competitive market environment for the benefit of consumers.