RECENT NEWS
New York Times  Nov 22  Comment 
A deal in the antitrust case would give consumers $400 million in cash and e-book credits, and lawyers $50 million. But an appeal is still pending.
Reuters  Nov 21  Comment 
Sysco Corp , the biggest U.S. food distributor, is in advanced talks to sell some assets to a food company owned by Blackstone Group in order to win regulatory approval for its...
FiercePharma  Nov 17  Comment 
After months of percolating discontent about generic drug price hikes, the U.S. Senate is hauling drugmakers to a hearing this week. But the real threat lies at the Department of Justice, which is likely considering criminal prosecution for...
Reuters  Nov 17  Comment 
The U.S. Supreme Court on Monday declined to hear Dean Foods Co's appeal over claims the business conspired to restrict competition for bottled milk in the southeastern United...
Agrimoney.com  Nov 17  Comment 
Credit Suisse says Theo Muller should win regulatory approval to buy Dairy Crest's dairy division, despite the market concentration it would bring
Wall Street Journal  Nov 17  Comment 
Republican control of Congress in 2015 could boost GOP efforts to make the Federal Trade Commission operate more like the Justice Department when it comes to antitrust enforcement.
New York Times  Nov 12  Comment 
The European Union’s competition commissioner wants to hear what companies most concerned about Google’s practices have to say before resolving a longstanding antitrust case.
TechCrunch  Nov 12  Comment 
 The long-running saga — four years and counting — that is the European Union’s investigation into Google over alleged antitrust violations has stalled again. Read More




 
TOP CONTRIBUTORS


US antitrust legislation or "competition law" focuses on three kinds of activity discouraging to competition: monopoly, mergers and acquisitions (M&A), and price fixing.

Monopolies and M&A are both regulated to keep companies from becoming too large or powerful within a single or a few industry sectors. M&A activity is particularly worth noting: many industries have been undergoing a phase of general consolidation in the past few years, and U.S. M&A activity has risen more than 31% since 2005 (2006 saw more than US$ 1.5 trillion's worth of activity). Price fixing is also carefully watched to prevent some companies from gaining an "unfair" advantage; antritrust lawsuits in this category tend to target cartels (groups of nominally independent companies that try to artificially establish relatively high prices by agreement across a number of market players).

U.S. Democrats are traditionally harder on antitrust than their Republican counterparts, and the 2008 presidential election will play an important part in determining the strength of the next round of antitrust legislation. In naming his new attorney general and head of the Federal Trade Commission, the new president will heavily influence the political leanings of the two departments with the most control over the outcome of antitrust lawsuits: the Department of Justice and the Federal Trade Commission.

Antitrust Losers

  • TXU and other large utility companies are at risk of antitrust lawsuits for various price-fixing or merger/acquisitions practices. The utilities sector is a particularly common antiturst target because of the high fixed costs/barrier to entry.
    • Telephony/communications, oil, chemicals manufacturing, banking, and cable industries are also strongly at risk for antitrust lawsuits.
  • Microsoft, Apple, and recently even Google are examples of companies that are dominant enough in an industry that any further merger/acquisitions activity is immediately under antitrust activity.

jkhdfl

Antitrust Winners

Legal and economic advisory firms like FTI Consulting, LECG, CRA International, Navigant Consulting, and Huron Consulting Group stand to benefit in all antitrust cases, as they assist parties on both sides by providing trial support services and expert testimony.

To Be Determined

  • XM and Sirius entered into a merger agreement in March 2007 which would leave only one company in the U.S. satellite radio business. Given that neither company has ever generated positive income, a combined company would likely eliminate overlapping costs and optimize operating efficiency. The companies argue against anti-trust worries, claiming their merged company would face heavy competition from traditional radio companies such as Clear Channel Communications (CCU) and CBS (CBS) as well as other audio options for consumers, such as iPods. It wasn't until July 29, 2008, that the two parent companies were able to have completed the long awaited merger. This meant that Sirius Satellite Radio had completed its acquisition of XM Satellite Radio and combining the two radio services to create a single satellite radio network in the United States.This merger brought the combined companies an approximate total of more than 18.5 million subscribers based on current subscriber numbers on the date of merging.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki