How did horizontal integration limit competition? - Answers

Horizontal integration limits competition by consolidating companies within the same industry, leading to fewer players in the market. As one company acquires or merges with its competitors, it can increase its market share and pricing power, reducing the options available to consumers. This often results in reduced innovation and higher prices, as the dominant firm faces less competitive pressure. Ultimately, horizontal integration can create monopolistic or oligopolistic market structures that stifle competition.