22. Mergers and Acquisitions Analysis 1) The Authority, upon receipt of a Merger and Acquisition Notification, shall conduct an investigation into the likely effects that such transaction would have on competition for Telecommunications Services. 2) When analyzing the effect on competition, the Authority shall compare the conditions that would prevail if the transaction is approved, with the conditions without the transaction. 3) When analyzing the proposed transaction, the Authority shall consider how the transaction would likely impact: a) Product prices; b) Quality of service; c) Product variety; or d) Product innovation. 4) It is often the case that a transaction, and in particular a Merger, could have both positive and negative effects on competition. The Authority shall endeavor to analyze what the net effect on competition would be from such transaction. 23. Competition Concerns in Horizontal Mergers When analyzing a proposed Horizontal Merger, the Authority shall consider the possible benefits and adverse effects on competition, of such Merger, including, but not limited to: a) The potential increase in market concentration, and its possible effect on prices, quality of service, and product variety; b) The likelihood that, as a result of a Merger, the merged entity may increase its operational efficiency due to increased economies of scale or scope, and by how much; c) The kind of competitor that the proposed Merger would eliminate; and d) The market characteristics, such as the ease of entry or expansion, technical changes on the service delivery platform, and changes on consumer preferences, in the post-merger years. 24. Competition Concerns in Vertical Mergers When analyzing a proposed Vertical Merger, the Authority shall consider the existence of regulations that may constrain the ability of a SMP Operator to act anticompetitively. In particular, obligations, set in the Proclamation, or any Directive adopted by the Authority with respect to Interconnection, Collocation, Infrastructure Sharing, and lawful tariffs. 25. Competition Concerns in Conglomerate Mergers The Authority shall consider if potential gains in efficiency, as a result of Conglomerate Merger, may countervail competition concerns. 13