April 30, 2020 10:06AM # Bad Ideas In Our Time: Moratorium on Corporate Mergers By [Walter Olson](https://www.cato.org/people/walter-olson) --- SHARE I’m quoted in [Jack Arnholz’s report for ABC News](https://abcnews.go.com/Politics/warren-aoc-propose-ban-mergers-acquisitions-pandemic/story?id=70404081) on some of the problems with a very bad new scheme from Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez for an emergency ban on corporate mergers. Excerpt: > “A bill like this would harm the economy in general. It would in particular threaten workers, consumers, investors and those affected by the coronavirus,” Walter Olson, a senior fellow at the Cato Institute, told ABC News. > > “In crisis conditions especially, mergers are a way for companies with a relevant strength, such as a strong balance sheet or superior distribution channels, to combine with others that may be weaker yet have vital assets such as promising research, a loyal consumer base, or a superior product line. If mergers are blocked, some weaker, yet valuable companies, will flounder, discontinue research, furlough workers or even enter bankruptcy,” he added. > > Despite its prominent sponsors, the proposal is unlikely to pass a Republican-controlled Senate and White House. Olson said that the possibility the bill becomes law is unlikely. > > “This bill is an exercise in political symbolism, not the way an advanced democratic country should approach antitrust policy. It’s the equivalent of a Trump tweet — it lets off steam, everyone can take sides, and it allows momentary domination of a not especially meaningful conversation until everyone moves on to the next,” Olson said. Selling out to bigger companies is also a main means by which successful tech startups hit the mainstream and win wide distribution for their products; absent the prospect of being able to exit this way, fewer funders and principals will be interested in going the startup route. \[cross-posted from [Overlawyered](https://www.overlawyered.com/2020/04/bad-ideas-in-our-time-emergency-merger-moratorium/)\] ##### Related Tags [COVID-19](https://www.cato.org/covid-19), [Regulation](https://www.cato.org/regulatory-studies) [![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/).