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0 pointsSomeone2y ago0 comments

> Vertical integration is illegal.

Is it? The only related info I could find is https://www.investopedia.com/ask/answers/012615/what-are-leg..., which says it _can_ be illegal (in the USA) if it is achieved through a merger.

https://en.wikipedia.org/wiki/Vertical_integration mentions quite a few examples of existing vertically integrated companies, mentions a few court cases, but doesn’t say it’s outright illegal.

Also, if vertical integration is illegal in the USA, somebody should tell Musk he should split up Tesla and SpaceX.

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arrosenberg2y ago

It can be in certain cases if it is in restraint of trade.

> if vertical integration is illegal in the USA, somebody should tell Musk he should split up Tesla and SpaceX.

How are those companies related in terms of market power? I don't see it. Plus, space is so capital intensive and reliant on government contracts that pursuing it would be pointless.

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arrosenberg2y ago

It can be in certain cases if it is in restraint of trade.

> if vertical integration is illegal in the USA, somebody should tell Musk he should split up Tesla and SpaceX.

How are those companies related in terms of market power? I don't see it. Plus, space is so capital intensive and reliant on government contracts that pursuing it would be pointless.

j / k navigate · click thread line to collapse