An Antitrust Lawsuit Against US Airways and American Airlines Shows the US DoJ Means Business

An American Airlines plane is seen between two US Airways planes at Washington's Ronald Reagan National Airport. An American Airlines plane is seen between two US Airways planes at Washington's Ronald Reagan National Airport. Susan Walsh/AP

The deal to merge US Airways and American Airlines, which would create the world’s largest airline, has suffered a big setback. In a surprising move, the US Justice Department filed an antitrust lawsuit, saying the transaction poses “substantial harm” to consumers. That means US Airways and American will have to offer more concessions, like giving up more take-off and landing slots at airports, to try to win approval, or risk losing the deal all together.

The move is another sign of the department’s recent aggressiveness on antitrust, in contrast to the George W. Bush years, when it was seen as lax. Under the Barack Obama administration, antitrust officials have blocked AT&T’s acquisition of T-Mobile, and wrangled more concessions out of beer brewer Anheuser-Busch InBev before it approved the company’s deal for Corona maker Grupo Modelo.

The Justice Department also won an antitrust lawsuit against Apple, which was accused of working with five book publishers to increase the price of e-books. That successful track record has no doubt emboldened government officials even further.

Read more at Quartz

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.