> I don't understand how that kind of clause can be legal.
Arguably they promote a chilling effect around acquisitions, which does help competition: "don't try to buy something unless you're prepared to deal with a possible fallout" should result in fewer attempts at consolidating dominant positions.
I'd almost be tempted to posit that such a clause should become mandatory for deals over a certain threshold (e.g. $1bn), with amounts determined according to certain parameters.
Arguably they promote a chilling effect around acquisitions, which does help competition: "don't try to buy something unless you're prepared to deal with a possible fallout" should result in fewer attempts at consolidating dominant positions.
I'd almost be tempted to posit that such a clause should become mandatory for deals over a certain threshold (e.g. $1bn), with amounts determined according to certain parameters.