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Thursday, April 18, 2024

Pennsylvania will join the FTC in challenging Staples, Office Depot merger

Officesupplies

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HARRISBURG, Pa. (Legal Newsline) – The office of Pennsylvania Attorney General Kathleen G. Kane announced it joined the Federal Trade Commission and District of Columbia in a legal filing to challenge the proposed merger of Staples and Office Depot.

The filing is a complaint for a temporary restraining order and preliminary injunction. The goal is to block the two companies from joining together. These companies both sell office supplies and the filing claims that a merger would reduce the benefits derived from their competition.

With the companies separate, the filing claims, customers receiver lower prices and better service. The merger would harm this dynamic. Additionally, a combined Office Depot and Staples would control about 80 percent of the business market. This includes many major Pennsylvania businesses.

If the court grants the complaint, the merger would be put on temporary hold. In the meantime, the FTC would pursue a proceeding to determine the merger’s legality.

The Pennsylvania Office for Attorney General’s Antitrust Section is handling the case. This group aims to protect the free enterprise system by detecting anti-competitive practices and trying to legally stop them.

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