Merger Guidelines
Subscribe to Merger Guidelines's Posts

Price Discrimination Markets Lead Antitrust Enforcers to Increased Success

In the last two years, the Federal Trade Commission (FTC) and the Antitrust Division of the US Department of Justice (DOJ) brought, and won, several litigated merger cases by establishing narrow markets comprised of a subset of customers for a product. This narrow market theory, known as price discrimination market definition, allowed the agencies to allege markets in which the merging parties faced few rivals and, therefore, estimate high post-merger market shares. By their nature, price discrimination markets can lead to a challenge of a high-value deal where only a small number of the merging parties’ customers are allegedly harmed. Given the increased usage by the agencies and now judicial acceptance of the theory, counsel for merging parties must consider the potential for price discrimination market definition in assessing the antitrust risks for transactions. Read the full article here.

Continue Reading

FERC Reaffirms Merger Policy; Does Not Adopt DOJ/FTC 2010 Horizontal Merger Guidelines

by Jon Dubrow and Cerissa Cafasso Public utilities could face different levels of scrutiny in merger reviews before the U.S. Federal Energy Regulatory Commission, and the Department of Justice and the Federal Trade Commission (the Antitrust Agencies). To view the full article, please click here. 

Continue Reading

FTC Publishes Comments to FERC Notice of Inquiry Regarding 2010 Horizontal Merger Guidelines

by Jon B. Dubrow and Carrie G. Amezcua On Tuesday the FTC published its comments to FERC's Notice of Inquiry (NOI), in which  FERC had asked for comments on whether, (and if so, how), it should revise its approach for examining market power concerns arising from horizontal mergers to reflect the revised 2010 Horizontal Merger Guidelines published by the FTC and DOJ.  The NOI also asked for comments on what impact the revised Merger Guidelines should have on FERC's analysis of horizontal market power in its electric market-based rate program. The theme of the FTC's comments focus on encouraging FERC to adopt the broader set of concepts from the 2010 Horizontal Merger Guidelines, not just the revised HHI thresholds, as FERC's NOI suggests.  HHI (Herfindahl-Hirschman Index) is a measure of market concentration, based on market share analysis.  The FTC points out that a "critical thrust" of the 2010 Merger Guidelines is that...

Continue Reading

STAY CONNECTED

TOPICS

ARCHIVES