FTC, DOJ Submit Joint Comment to FERC Warning of Common Ownership Competition Risks in the Public Utilities Industry
First, partial acquisitions can give the partial owner the ability to influence the competitive conduct of the target firm.
- First, partial acquisitions can give the partial owner the ability to influence the competitive conduct of the target firm.
- Second, partial acquisitions can reduce incentives for firms to compete even absent direct control or influence.
- Third, partial acquisitions can facilitate an anticompetitive information exchange between competing firms by giving them or their common owners access to non-public, competitively sensitive information.
The agencies applaud FERC for undertaking this inquiry and encourage the FERC to consider the competitive consequences of common ownership in deciding whether to revise its current blanket authorization policy.
The Commission voted 5-0 to submit the joint comment to FERC.