What might occur if an acquisition creates a monopoly?

When an acquisition results in the formation of a monopoly, it typically raises significant concerns for regulatory authorities due to the potential negative impacts on competition and consumers. Regulatory bodies, such as the Federal Trade Commission (FTC) in the United States, are tasked with maintaining market competition and preventing anti-competitive practices.

A monopoly can lead to higher prices, reduced choices for consumers, and stifle innovation, which directly contravenes the principles underlying antitrust laws. As a result, the acquisition is likely to be scrutinized and may face legal challenges or require divestitures to restore competition in the market.

In contrast, options that suggest legal protection, automatic approval of regulations, or approval without scrutiny do not accurately reflect the rigorous review process that monopolistic formations typically undergo. Therefore, the correct choice accurately illustrates the reality that regulatory authorities actively challenge acquisitions that could potentially lead to monopolistic market conditions.