Question

The boards of 2 major telecommunications companies recently agreed to a $16 billion merger that would create the world's largest telecommunications company in the world. Although some agree that the synergy between these companies could be dynamic, others feel consumers could ultimately pay the price for the merger, depending on which company becomes dominant in the various service areas.

Answer the following questions:

Why do you think consumer advocates have expressed concern over such merger possibilities?

Other than pricing, what are some pitfalls that consumers might have to deal with when 2 major companies merge?

What are the possible ethical dilemmas that are present in this example?

Answer 1

Answer

The advocates have expressed concern over such merger possibilities because, this may create anti competition and burden will be on consumers due to the integration of the two big organisation dominating the entire market. Services and prices will be charged which benefits the merged organisation and may cause problems to the people.

Other than pricing there are pitfalls like poor services, poor quality, network issues, removal of offers, etc which consumers may face if the two major conpanico merge.

The two ethical dilemmas present in the example are: some people bekibel that merger will create a dynamic synergy bringing effectiveness and high quality service with fair prices, some argue that the merger will put the burden on consumers and bring monopoly kind of market, cutting competition.