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No major acquisition is a done deal until it passes through the regulatory hurdles. Government agencies like the Department of Justice and the Federal Aviation Administration scrutinize these mergers to ensure they comply with antitrust laws and maintain fair competition. This regulatory review process can be long and complex, and it’s a critical step in the acquisition. The main goal of these regulators is to protect consumers and prevent any anti-competitive practices that could lead to higher prices or reduced service quality. They review the deal in depth, looking at market share, potential impacts on routes and pricing, and overall consumer welfare. They have the power to block the acquisition if they think it would harm competition or the public interest.
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