Suppose the government decided that it could no longer use profits to measure the extent of monopoly power anymore because the public believed it was not fair to use this measure

A monopoly occurs when a single company dominates the market. Merger and acquisition can cause a monopoly situation in the market as a company might acquire its competitor to dominate the market solely. In the US, mergers are controlled by the Department of Justice (DOJ) in partnership with the FTC (Federal Trade Commission). A merger request goes through a clearance process to assign matters (to do with competition) within the knowledge of either agency. The control of mergers focuses on ensuring that smaller companies remain in the business and compete healthily. The Clayton Act section 7 governs unifications in the US since it prohibits mergers that have might substantially reduce competition and try to create a monopoly in the market. The Sherman Act section 1& 2 prohibit agreements that restrain trade and causes a monopoly in the market. The Federal Trade Commission Act Section 7 also denies unfair competition methods, which include monopolization. All these rules dictate that, generally, any merger applicants should observe a statutory waiting period before the approval to proceed with the merger.