In a market with an HHI of 1200, a merger is proposed that would increase the HHI by 400 points. What is the likely regulatory response?

• A. The merger will be automatically blocked.
• B. The merger will be approved without any review.
• C. The merger will be approved only if the HHI increase is less than 100 points.
• D. The merger may face scrutiny due to the significant increase in concentration.

Answer: (D)