RECENT NEWS  5 hrs ago  Comment 
WASHINGTON (dpa-AFX) - Steel Dynamics, Inc. (STLD) said it has entered into an agreement to settle the direct purchaser class action litigation, Standard Iron Works v. Arcelor Mittal, et al, for $4.6 million. The antitrust lawsuit was brought in...
Benzinga  Oct 14  Comment 
Digital Ally, Inc. (NASDAQ: DGLY) disclosed that a Federal District Court gave a ruling that denied TASER International, Inc. (NASDAQ: TASR) request to continue the stay of unearthing of the Antitrust claims included in its lawsuit against Taser....
MarketWatch  Oct 14  Comment 
Russia’s state-owned natural gas company OAO Gazprom and the European Union’s antitrust authorities are aiming to agree as soon as the end of October the terms of a settlement that would force changes to the way the company operates, according...
Reuters  Oct 13  Comment 
Brazil's antitrust watchdog CADE has declared the Brazilian bourse BM&FBovespa's 12.9 billion reais ($4 billion) acquisition of rival Cetip SA Mercados Organizados as a...
TechCrunch  Oct 13  Comment 
 The European Competition Commission has given Google another three weeks to file a response to formal charges that its Shopping price comparison service unfairly demotes rival services in search results. Read More
Forbes  Oct 12  Comment 
Suzuki needs a large partner, and Toyota could benefit from Suzuki's strong position in India. But a merger's potentially seismic impact on Japan's peculiar minivehicle market could pose a hurdle.
Reuters  Oct 10  Comment 
* GE receives antitrust clearance for proposed acquisition of Arcam Source text for Eikon: Further company coverage: (Stockholm Newsroom)
Reuters  Oct 10  Comment 
Beijing Miteno Communication Technology Co Ltd
New York Times  Oct 8  Comment 
Ms. Litman’s major court victories included the removal of a holiday Nativity display from a Pittsburgh courthouse and an antitrust settlement for the professional basketball player Connie Hawkins.
Reuters  Oct 4  Comment 
Amazon is talking to European Union antitrust regulators about settling a year-long investigation into its e-book deals with publishers without a fine, a person familiar with the matter said on Tuesday.


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.


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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