Saturday, June 25, 2022

US trade authority aims to block DFS merger


The U.S. Federal Trade Commission is seeking to stop the merger of DFS operators DraftKings and FanDuel, as the combined company would control more than 90 percent of the U.S. daily fantasy sports market.

In a Monday press release, the FTC said it will file a complaint in federal district court seeking a preliminary injunction to block the deal.

“This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” said Tad Lipsky, acting director of the FTC’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 favorable prices and terms consistent with the provision of competitive returns to efficient producers.”

DraftKings and Fanduel in a joint statement said they were disappointed by the decision and would be considering their legal options.

"We are disappointed by this decision and continue to believe that a merger is in the best interests of our players, our companies, our employees and the fantasy sports industry," said DraftKings chief executive Jason Robins and FanDuel boss Nigel Eccles in a statement.

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