'Blocking this de facto merger forces JetBlue and American to continue competing, eliminating anti-competitive revenue-sharing incentives and setting an important precedent against future consolidation in the industry,' says econliberties' WilliamJMcGee.
The ruling forces the airlines"to continue competing, eliminating anti-competitive revenue-sharing incentives and setting an important precedent against future consolidation in the industry," said one expert.A Massachusetts-based federal judge on Friday sided with the Biden administration plus six states and the District of Columbia, which launched an antitrust challenge to American Airlines and JetBlue Airways'"de facto merger" for Boston and New York City.
"Federal antitrust law is not concerned with making individual competitors larger or more powerful. It aims to preserve the free functioning of markets and foster participation by a diverse array of competitors," the judge added."Those principles are generally undermined, rather than promoted, by agreements among horizontal competitors to dispense with competition and cooperate instead. That is precisely what happened here.
Meanwhile, the DOJ, its state partners, and other critics of consolidation celebrated the initial court victory.
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