Section 7 of the Clayton Act prohibits mergers of companies that would lessen competition in the market or create a monopoly.

Section 7 of the Clayton Act

A provision in U.S. antitrust law that prohibits mergers and acquisitions where the effect may be substantially to lessen competition, or tend to create a monopoly.

Competition

The rivalry among businesses to attract customers and achieve higher sales, profits, and market share.

Monopoly

A market structure characterized by a single seller offering a unique product or service without close substitutes, leading to control over pricing and market conditions.