The FTC is planning to file a legal complaint against the planned merger of online fantasy sports sites FanDuel and DraftKings, saying that it would eliminate competition in the market space. The CEOs of the two companies are fighting but with their own legal measures in an attempt to stave off the FTC’s complaint.
CBS News reports:
The Federal Trade Commission announced Monday it will file a complaint — along with the attorneys general of California and the District of Columbia — seeking to temporarily stop the deal, pending an administrative trial scheduled for Nov. 21.
Combining the onetime rivals would “deprive customers of the substantial benefits of direct competition,” said Tad Lipsky, acting director of the commission’s Bureau of Competition.
DraftKing’s Jason Robins and FanDuel’s Nigel Eccles, the CEOs of the two companies, said in a statement, “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. We are considering all our options at this time.”
The network notes that the CEOs feel that the merger, while significant, still gives the major fantasy sports players like Yahoo! Sports and ESPN ample opportunity to own a slice of the multi-billion dollar market.
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Photo: Charly W. Karl/(CC BY-ND 2.0)
