Horizontal or vertical integration affords a means for the elimination of competition, and for the expansion of monopoly power which already exists. When a business makes or sells more than one product the business is horizontally integrated. When it transfers goods or services, which could be sold in the market, without making great changes from one of its departments to another, it is called a vertically integrated firm. Advantages of large-scale vertical and horizontal integration have been clearly revealed in criminal prosecutions by the Department of Justice against A & P and its two largest competitors. These chains are integrated both vertically and horizontally. They have reached to the "rear" by establishing their own purchasing agents and they have reached "laterally" in that they are composed of thousands of food stores combined into metropolitan "units" and extensive regional "divisions." The predatory activities which flow from these chains' employment of vertical and horizontal integration have been condemned under the Sherman Act.'
Stanford, William H. Jr.
"An Old Problem in a Modern Guise: Chain Stores and Efficient Integration Under the Sherman Act,"
Mercer Law Review: Vol. 1:
2, Article 5.
Available at: https://digitalcommons.law.mercer.edu/jour_mlr/vol1/iss2/5