FTC, California, And DC Sue To Stop Draftkings-Fanduel Merger On Antitrust Grounds
Although the Federal Trade Commission currently is short-handed with one Democrat and one Republican serving on the Commission (out of a normal lineup of five), today they showed that bi-partisan consensus still can exist in Washington. The FTC, along with California and DC, have sued to block the proposed merger of DraftKings and FanDuel, the two largest daily fantasy sports sites.
The federal court complaint alleges that paid daily fantasy sports contests in the United States represent a distinct antitrust product market. According to the complaint, consumers of paid fantasy sports are unlikely to view season-long fantasy sports contests as a meaningful substitute due to the length of season-long contests, the limitations on number of entrants and other issues. The FTC claims that entry or expansion by other providers is not likely to provide timely or effective new competition.
DraftKings and FanDuel are the two largest daily fantasy sports sites, controlling...
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