Monopolies

Heath insurer mergers deserve a critical look

Oct. 25, 2011 -- Chicago – A new analysis from the American Medical Association (AMA) notes that four out of five metropolitan areas in the United States lack a competitive commercial health insurance market.

"New data presented by the AMA demonstrates the degree of anti-competitive market clout that some health insurers have gained through mergers and acquisitions," said AMA President Peter W. Carmel, M.D. "Our new report is intended to help regulators, lawmakers, researchers and policymakers identify markets where mergers among health insurers may cause competitive harm to patients, physicians and employers."

Lawsuit Seeks to Restore Lost Competition in Sale of Milk to School Districts and Retailers in Illinois, Michigan and Wisconsin

January 22, 2010 -- WASHINGTON — The Department of Justice filed a civil antitrust lawsuit today against Dean Foods Company challenging its April 2009 acquisition of Foremost Farms USA’s Consumer Products Division. The department said that the merger eliminates substantial competition between the two companies in the sale of milk to schools, grocery stores, convenience stores and other retailers in Illinois, Michigan and Wisconsin.

January 22, 2010 -- “I am pleased that the Department of Justice has moved forward to block a portion of Dean Foods’ acquisition of Foremost Farms. I have had concerns about the impact of this and similar acquisitions on the already hurting dairy industry.

"The Department is following through with its pledge to examine market consolidation in the dairy industry, where farmers have been hit by sinking prices while milk processors and distributors are posting increased profits.

"It is appropriate for the Department to examine this acquisition closely, particularly at a time when dairy farmers are hurting, and dairy companies are not passing on savings to consumers.”

Feingold Praises Justice Department Blocking Of Anti-Competitive Dean Foods Merger

January 22, 2010 -- Washington, D.C. – U.S. Senator Russ Feingold stated his support today for the Department of Justice’s (DOJ) move to block the acquisition of Foremost Farms by Dean Foods, which would have led to a single company dominating the market for fluid milk in parts of Wisconsin, Illinois and Michigan.

In May 2009, Feingold, a long-time advocate for more competition in the dairy industry, flagged the possible acquisition for the Justice Department’s Antitrust division including concerns about how the acquisition could affect school lunch programs in Wisconsin. Following the Justice Department’s announced intervention, Feingold released the following statement:

Antitrust Division to Apply More Rigorous Standard with Focus on the Impact of Exclusionary Conduct on Consumers

May 11, 2009 -- WASHINGTON — Christine A. Varney, Assistant Attorney General in charge of the Department’s Antitrust Division, today announced that the Department is withdrawing, effective immediately, a report relating to monopolization offenses under the antitrust laws that was issued in September 2008.

As of today, the Section 2 report will no longer be Department of Justice policy. Consumers, businesses, courts and antitrust practitioners should not rely on it as Department of Justice antitrust enforcement policy.

Sen. Menendez's Tax Certificates Legislation Would Increase Competition, Diversity in Telecommunications Industry

August 5, 2008 -- WASHINGTON – U.S. Senator Robert Menendez (D-NJ) is supporting diversity in media ownership with new legislation to restore the tax certificate policy for sales of telecommunications properties to socially disadvantaged businesses, or SDBs.

OPEC Operates Illegal Cartel Under International Trade Law

June 17, 2008 -- WASHINGTON, DC – Today, a coalition of eleven Senators led by Sen. Frank R. Lautenberg (D – NJ) called on the Bush Administration to take action in the World Trade Organization (WTO) against eight Petroleum Exporting Countries (OPEC) by ordering United States Trade Representative (USTR) Ambassador Susan Schwab to file a complaint with the WTO.

These eight countries, operating as an illegal cartel, have refused to increase production, reduced the supply of oil on the market and driven up the gas prices that consumers pay at the pump.

May 20, 2008 -- Washington, D.C.- Speaker Nancy Pelosi released the following statement today on H.R. 6074, the Gas Price Relief for Consumers Act, which passed the House by a vote of 324 to 84, despite a veto threat:

“The House today with a strong bipartisan and veto-proof margin voted to hold foreign oil cartels and Big Oil accountable.

“The legislation provides the Justice Department with a critical tool to pursue antitrust actions against OPEC-controlled entities for fixing prices and creates a new Justice Department Petroleum Industry Antitrust Task Force to examine anticompetitive market practices in the oil industry. It also requires that the mergers of Big Oil companies in recent years be examined for anticompetitive effects.

As Oil Company Profits Hit Record Highs, Americans Pay the Price at Pump

May 6, 2008 -- WASHINGTON, D.C. – Uncompetitive practices by oil companies and manipulation of the market by financial speculators are two culprits behind soaring gas prices, Tyson Slocum, director of Public Citizen’s Energy Program, told a U.S. House of Representatives subcommittee today.

Chevron oil refinery: Photo by Garlyn (CC)

N.J. Sen. Says OPEC Production Limits Inflate Gas Prices, Violate International Trade Laws

May 5, 2008 -- WASHINGTON, D.C. – Late last week, U.S. Senator Frank R. Lautenberg (D-NJ) introduced legislation to force action against the Organization of the Petroleum Exporting Countries (OPEC) for its anti-competitive practices and illegal export quotas on oil, which ultimately lead to higher gas prices here at home.

OPEC building, Vienna: Photo by Spino73 (CC)