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Clusterstock  34 min ago  Comment 
By Diane Bartz (Reuters) - Praxair Inc's contemplated merger with Linde AG would cut the number of global industrial gas suppliers to three from four, posing antitrust challenges and drawing scrutiny from regulators wary of more mega...
Reuters  2 hrs ago  Comment 
* If deal is terminated due to failure to obtain antitrust approval, then Cintas to pay G&K Services a termination fee of $100 million
New York Times  7 hrs ago  Comment 
Regulators are stuck in an outdated view of the world, while the internet giants are more attuned to the threat of nascent competitors.
newratings.com  Aug 15  Comment 
LONDON (dpa-AFX) - Animal genetics firm Genus plc (GNS.L), which is in anti-trust litigation against Inguran LLC, operating as Sexing Technologies or 'ST', announced Monday the final jury verdicts in the litigation relating to ABS's...
Yahoo  Aug 12  Comment 
WASHINGTON—A federal judge said on Friday she won’t rule on Anthem Inc.’s proposed acquisition of Cigna Corp. until early next year, a setback for Anthem’s efforts to hold the $48 billion health-insurance deal together. The Justice...
Clusterstock  Aug 12  Comment 
Google and antitrust complaints have gotten pretty familiar. The search giant has been accused numerous times of shutting out competition on Android by requiring phone makers to preinstall Google-made apps. It currently faces charges from the EU...
Financial Times  Aug 12  Comment 
Watchdog acknowledges for first time that it is investigating global search group
Financial Times  Aug 12  Comment 
Sharp shares surge 19% on finalisation of deal after China antitrust watchdog signs off
Wall Street Journal  Aug 11  Comment 
The European Union’s antitrust authority has opened a full investigation into plans by Dow Chemical and DuPont to merge, prompted by concerns the deal would reduce competition in the global agricultural sector.




 
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.

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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.
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