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Reuters  9 hrs ago  Comment 
Prestige Brands Holdings Inc , which markets and distributes healthcare and cleaning products, has won U.S. antitrust approval to buy Insight Pharmaceuticals Corp on...
Wall Street Journal  11 hrs ago  Comment 
Its CEO said the company remains committed to trying to buy Family Dollar, calling antitrust concerns "very manageable."
Reuters  Aug 28  Comment 
European Union antitrust regulators will clear Liberty Global's bid for Dutch peer Ziggo after the U.S. cable TV provider sweetened concessions to allay competition...
Wall Street Journal  Aug 28  Comment 
Its CEO said the company remains committed to trying to buy Family Dollar, calling antitrust concerns "very manageable."
Yahoo  Aug 28  Comment 
Microsoft Corp Chief Executive Officer Satya Nadella is set to visit China in late September, a source familiar with the matter said on Thursday, as the Chinese government conducts an antitrust investigation into the world's largest software...
Yahoo  Aug 28  Comment 
To win approval for the merger, the companies agreed to sell Heinold Hog Markets, the U.S. Department of Justice said. The attorneys general of Iowa, Illinois and Missouri, all big hog-producing states, joined the settlement. "Today's proposed...
Wall Street Journal  Aug 28  Comment 
The Supreme Court will take up an antitrust case this fall that could curb the proliferation of state licenses, a top worry for U.S. small-business owners and entrepreneurs.
Wall Street Journal  Aug 27  Comment 
Tyson agreed to divest its sow-purchasing business to alleviate antitrust concerns about its impending $7.7 billion takeover of Hillshire Brands under a settlement with the U.S. Department of Justice.
TheStreet.com  Aug 27  Comment 
NEW YORK (TheStreet) -- Intel Corp. aasked the EU's top court to throw out a record a$1.4 billion antitrust fine, saying a lower court was wrong to back the decision, Bloomberg reports. The company asked the European Court of Justice to...




 
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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