A . What is a consent decree? b. Why would the FTC agree to a consent decree? c. What is the problem with consent decrees?

a . A consent decree is a negotiated settlement between the FTC and a firm prior to and in lieu of the
actual prosecution of an antitrust suit. The settlement allows the contemplated merger or acquisition to
occur uncontested as long as the firm consents to certain conditions placed on it by the FTC.
b. The FTC would agree to a consent decree if it thinks it can protect competition in the face of a merger
or acquisition and still allow the merger or acquisition to take place.
c. The problem is that consent decrees generally require the FTC to monitor compliance. The FTC
sometimes finds itself waging costly battles against firms as it tries to make them fulfill the conditions
set in their decrees.