What strategy may lead to legal repercussions due to monopolization?

The strategy that may lead to legal repercussions due to monopolization is forward vertical integration. This refers to a company's move to control the distribution and sale of its products by acquiring or establishing operations further along the supply chain. For instance, a manufacturer might take over the retailers that sell its products directly to consumers.

This strategy can lead to monopolization concerns because it gives a company significant control over market access for competitors, potentially leading to anti-competitive behavior. For example, if a dominant company acquires all the distributors for its products, it may unfairly disadvantage competing manufacturers by limiting their ability to reach consumers. Such actions can trigger scrutiny from regulatory bodies that enforce antitrust laws designed to maintain fair competition in the marketplace.

Expanding into international markets doesn't inherently raise monopolization issues, as it often involves competing in new regions rather than controlling existing competitors. Backward vertical integration involves taking control of the supply chain leading to the manufacturing process, which can enhance efficiency but is less likely to raise immediate monopolization concerns. Conglomerate integration, or diversifying into unrelated businesses, typically does not result in a monopolistic structure within a specific market, as the business units operate in different sectors. Therefore, forward vertical integration is particularly scrutinized for the potential to create