Showing archive for: “Mergers & Merger Enforcement”
Capital Confusion at the New York Times
In a recent guest essay for The New York Times, Aaron Klein of the Brookings Institution claims that the merger between Capital One and Discover would “keep intact the broken and predatory system in which credit card companies profit handsomely by rewarding our richest Americans and advantaging the biggest corporations.” That’s quite an indictment! Fortunately, Klein also ... Capital Confusion at the New York Times
The Law & Economics of the Capital One-Discover Merger
Capital One Financial announced plans late last month to acquire Discover Financial Services in a $35.3 billion deal that would give Capital One its own credit-card payment network, while simultaneously allowing the company to expand its deposit base, credit-card offerings, and rewards programs. Conversely, credit analysts like Matt Schulz of LendingTree note that “if Capital ... The Law & Economics of the Capital One-Discover Merger
Will the FTC Scupper the Kroger/Albersons Merger?
The press is abuzz with news about the Federal Trade Commission’s (FTC) Feb. 26 announcement that it would challenge the proposed Kroger/Albertsons mega-supermarket merger, which had been in the works since the fall of 2022. If the FTC succeeds in obtaining a temporary restraining order and preliminary injunction in Oregon federal district court (a big ... Will the FTC Scupper the Kroger/Albersons Merger?
Whose Failure Is the Failed Amazon/iRobot Merger?
The European Commission told Amazon in November 2023 of its preliminary view that the company’s proposed acquisition of iRobot restricted competition in the market for robot vacuum cleaners (RVCs) and could hamper rival RVC suppliers’ ability to compete effectively. The deal, the Commission asserted, would give Amazon incentive to foreclose iRobot’s competitors by engaging in ... Whose Failure Is the Failed Amazon/iRobot Merger?
What Do We Do with Presumptions in Antitrust?
Winter was coming, as it does. We knew the agencies were going to issue new merger guidelines, and then they did. On Dec. 18, 2023, the Federal Trade Commission (FTC) and U.S. Justice Department (DOJ) jointly issued merger guidelines, supplanting 2023’s draft guidelines, the 2010 Horizontal Merger Guidelines, and the 2020 (partially withdrawn) Vertical Merger ... What Do We Do with Presumptions in Antitrust?
A European Commission Challenge to iRobot’s Acquisition Is Unjustified and Would Harm Dynamic Competition
Once again, a major competition agency, the European Commission, appears poised to take an anticompetitive enforcement action—in this case, blocking Amazon’s acquisition of consumer robotic-manufacturer iRobot. iRobot, headquartered in Bedford, Massachusetts, is an American success story: Founded in 1990 by Massachusetts Institute of Technology roboticists with the vision of making practical robots a reality, iRobot ... A European Commission Challenge to iRobot’s Acquisition Is Unjustified and Would Harm Dynamic Competition
The Conundrum of Out-of-Market Effects in Merger Enforcement
Section 7 of the Clayton Act prohibits mergers that harm competition in “in any line” of commerce. And, indeed, the Supreme Court’s decisions in Philadelphia National Bank and Topco are often cited on behalf of the proposition that this means any single cognizable market, and that anticompetitive effects in one market cannot be offset by ... The Conundrum of Out-of-Market Effects in Merger Enforcement
FTC v. Illumina/Grail – A Rare FTC Merger Victory? (Actually, a Loss for Consumers)
Although it was overshadowed by the Federal Trade Commission (FTC) and U.S. Justice Department’s (DOJ) year-end release of the 2023 merger guidelines, one should also note the abrupt end of the FTC v. Illumina/Grail saga. The saga finished with the FTC’s Dec. 18 press release announcing that Illumina decided on Dec.17 to divest itself of ... FTC v. Illumina/Grail – A Rare FTC Merger Victory? (Actually, a Loss for Consumers)
In Reforming Its Antitrust Act, Argentina Should Not Ignore Its Institutional Achilles Heel
As part of a set of “shock therapy” measures introduced to deregulate and stabilize its economy, the Argentinian government led by newly elected President Javier Milei has already adopted an emergency decree (Decreto de Necesidad y Urgencia) that makes broad array of legal changes. Toward the same goal, the government in late December sent up ... In Reforming Its Antitrust Act, Argentina Should Not Ignore Its Institutional Achilles Heel
The Porcine 2023 Merger Guidelines (The Pig Still Oinks)
Well, they have done it. On Dec. 18, the Federal Trade Commission (FTC) and U.S. Justice Department (DOJ) issued their final 2023 merger guidelines, as an early New Year’s gift (nicely sandwiched between Hanukkah, which ended Dec. 15, and Christmas) of the porcine sort. The two agencies try to put lipstick on this pig by ... The Porcine 2023 Merger Guidelines (The Pig Still Oinks)
A Consumer-Welfare-Centric Reform Agenda for the Federal Trade Commission
As we approach a presidential election year, it is time to begin developing a comprehensive reform agenda for the Federal Trade Commission (FTC). In that spirit, this post proposes 12 reforms that could be implemented by new leadership, either through unilateral action by a new chair or (in some cases) majority votes of the commission. ... A Consumer-Welfare-Centric Reform Agenda for the Federal Trade Commission
Hands Across the Agencies
In the headline to a Dec. 7 press release, the Federal Trade Commission (FTC) announced that it, in concert with the U.S. Justice Department (DOJ) and U.S. Department of Health and Human Services (HHS), had managed to “Lower Health Care and Drug Costs, Promote Competition to Benefit Patients, Health Care Workers.” According to the subhead: ... Hands Across the Agencies
