The United States Federal Trade Commission (FTC), along with two State Attorneys General, have filed a legal challenge in opposition of the proposed merger between daily fantasy sports companies DraftKings and FanDuel.
The FTC authorized the legal action seeking to block the merger of the two largest daily fantasy sports sites saying the deal would be tantamount to a monopoly as the merged operation would have 90 percent control over the U.S. daily fantasy sports market.
“The FTC, jointly with the Offices of the Attorneys General in the State of California and the District of Columbia, will file a complaint in federal district court seeking a preliminary injunction to stop the deal and to maintain the status quo pending an administrative trial,” the statement reads.
In addition, the FTC lodged an administrative complaint alleging that the proposed merger violates Section 7 of the Clayton Act and Section 5 of the FTC Act, opining that the proposed merger would “deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel.”
“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 favorable prices and terms consistent with the provision of competitive returns to efficient producers,” Tad Lipsky, Acting Director of the FTC’s Bureau of Competition, said.
The FTC’s full statement can be read here: https://www.ftc.gov/news-events/press-releases/2017/06/ftc-two-state-attorneys-general-challenge-proposed-merger-two