Insurance Journal  1 hr ago  Comment 
The Federal Trade Commission (FTC) has given the green light to ACE Limited’s $28 billion acquisition of rival insurer Chubb Corp. In a regulatory filing, ACE reported that it received notice on Sept. 30 from the FTC that it had …
Reuters  2 hrs ago  Comment 
* Natural gas could boost growth by 1 percentage point a year
Forbes  Sep 30  Comment 
It is getting to the late rounds of a heavyweight fight and the NCAA will not go down easy.  Sep 30  Comment 
Read full story for latest details.
New York Times  Sep 30  Comment 
An appeals court panel found that N.C.A.A. rules violated antitrust law, but struck down a federal judge’s solution that would have paid athletes $5,000 a year.  Sep 29  Comment 
WASHINGTON (dpa-AFX) - ARRIS Group Inc (ARRS), a provider of media entertainment and data communications solutions, on Tuesday announced that its proposed acquisition of Pace plc (PIC.L) received unconditional merger clearance from the Portuguese...
Insurance Journal  Sep 29  Comment 
A Douglas County jury has awarded Omaha, Neb., software developer Baldwin Hackett & Meeks Inc. $43.8 million in a lawsuit that accused a rival software firm of violating antitrust laws and breaching a nondisclosure agreement. The recent award was...
New York Times  Sep 28  Comment 
Gary Reback, who persuaded the federal government to bring a case against Microsoft in the 1990s, is now pursuing a case against Google.
The Hindu Business Line  Sep 26  Comment 
The US Federal Trade Commission has opened a preliminary investigation into whether Google Inc uses its Android operating system to dominate competitors as more consumers go mobile, two sources fa...


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.
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