The FTC is planning to file a legal complaint against the planned merger of online fantasy sports sites FanDuel and DraftKings, saying that it would eliminate competition in the market space.
Combining the onetime rivals would "deprive customers of the substantial benefits of direct competition", said Tad Lipsky, acting director of the commission's Bureau of Competition.
"The FTC is committed to the preservation of competitive markets, which offer consumers the best opportunity to obtain innovative products and services at the most favourable prices and terms consistent with the provision of competitive returns to efficient producers".
DraftKings and FanDuel agreed to merge in November after major marketing battles against each other and then jointly versus state lawmakers as many states ruled Daily Fantasy Sports to be gambling rather than games of skill.
Bank of America Corporation (BAC) Stake Lowered by Rockland Trust Co
Ionic Capital Management Llc decreased Liberty Media Corp Delaware stake by 22,565 shares to 12,234 valued at $250,000 in 2016Q4. After $0.41 actual EPS reported by Bank of America Corp for the previous quarter, Wall Street now forecasts 17.07% EPS growth.
The federal court complaint alleges that paid daily fantasy sports contests in the United States represent a distinct antitrust product market. The FTC claims that entry or expansion by other providers is not likely to provide timely or effective new competition.
"DraftKings and FanDuel are each other's most significant competitor".
Very little detail was provided when the merger was announced, except that the new company will be a 50/50 split of the two parties, with an even number of Board members (plus one independent) coming from each company.
The grounds for complaint are that the newly formed company would control more than 90% of the USA market for paid daily fantasy sports, and that players would no longer be able to benefit from competition between the two with regard to prizes or variety of games.
- Draft is next up during NBA's dizzying days of deals
- Rangers Lose Oscar Lindberg In Expansion Draft
- Warmbier's travel agency stops taking Americans to N. Korea
- Départ Bayrou: un choix qui "simplifie la situation", selon Castaner
- Family of Otto Warmbier object to autopsy, cause of death remains unknown
- The Louisiana State Employees Retirement System Lowers Stake in Schlumberger NV (SLB)
- Trump Is Wrong about Cuba, Mexican Press Highlights
- Nike Just Signed These 7 NBA Rookies Before the 2017 NBA Draft
- UK Tory govt still working on supply deal
- Final Fantasy 14 is being hammered by a DDoS attack