Federal Trade Commission to oppose DraftKings-FanDuel merger
The US Federal Trade Commission (FTC) has said that it will seek to block the proposed merger between daily fantasy sports (DFS) companies DraftKings and FanDuel.
According to reports in the US, the FTC has raised concerns over how the deal could impact competition in the US DFS sector, forecasting that the combined company would control over 90% of the domestic market.
The FTC, along with attorneys general in California and the District of Columbia, will file for a complaint in federal district court and seek a preliminary injunction to block the deal.
“This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” FTC Bureau of Competition acting director, Tad Lipsky, said, according to CNBC.
The merger has been mooted for some time and the two DFS companies formally announced a deal in November of last year.
DraftKings is currently active in 40 US states, while FanDuel offers its services in 39.
Speaking in a joint statement, DraftKings chief executive Jason Robins and his FanDuel counterpart, Nigel Eccles, said: “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.”
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