In 2024, VoltCharge and ElectroLoop, the two dominant operators of rapid electric vehicle (EV) charging stations along major national motorway corridors, announced a merger of their operations. The boards of both companies argued that the merger was necessary to achieve significant economies of scale in bulk electricity purchasing and to speed up the rollout of ultra-rapid chargers. The Competition and Markets Authority (CMA) initiated a phase 2 investigation into the transaction.
Explain one reason why the Competition and Markets Authority (CMA) might be concerned about the impact of this merger on EV drivers.
92 exam-style questions on Edexcel A A Level Economics 3.4 Market structures, covering 3.4.1 Efficiency, 3.4.2 Perfect competition, 3.4.3 Monopolistic competition, 3.4.4 Oligopoly, 3.4.5 Monopoly, 3.4.6 Monopsony, and 3.4.7 Contestability. Each one has a worked solution and a mark scheme showing where the marks go.