Fundamentals of Business Intelligence (FBI) Practice Exam

Which agency would oversee a monopoly claim against Disney after acquiring ESPN and ABC?

1. Federal Communications Commission (FCC)

2. Securities and Exchange Commission (SEC)

3. Federal Trade Commission (FTC)

4. Antitrust Division of the Department of Justice

The correct answer is: Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) is tasked with protecting consumers and promoting competition. When a company expands significantly through acquisitions, such as Disney acquiring ESPN and ABC, the FTC assesses these transactions to ensure they do not create unfair monopolies or hinder competition in the marketplace. The agency examines various factors during this oversight process, including market share, pricing behavior, and the potential impact on consumers. If the acquisition is found to significantly reduce competition or create a monopoly, the FTC can challenge the merger or impose conditions to protect market integrity. While other agencies like the Antitrust Division of the Department of Justice also play a crucial role in antitrust issues, the FTC specifically focuses on consumer protection and competition, making it the primary agency to oversee a monopoly claim in this context. The FCC, on the other hand, regulates communication and broadcasting aspects, while the SEC is primarily concerned with securities regulation and enforcing laws against market manipulation.