AAI Warns That Merger of Waste Disposal Giants Republic and Allied is Likely to Harm Competition and Consumers

Short of Blocking the Merger, DOJ Must Craft an Effective Remedy

11/17/2008

The American Antitrust Institute (AAI) today warned that the proposed merger of waste giants Republic Services and Allied Waste Industries will potentially harm competition and consumers.

If the Department of Justice’s (DOJ) Antitrust Division does not block the merger of the second largest (Republic) and third largest (Allied) national firms, the AAI urges the DOJ to craft a thorough and effective remedy to protect competition and consumers.

“There are numerous metropolitan geographic markets in the U.S. where the merger will apparently eliminate a significant, head-to-head competitor,” explained AAI Vice President and Senior Fellow Diana Moss.

According to a report recently issued by RecycleWorlds titled “Analysis of the Effect on Competition in Major Markets from the Merger of Republic and Allied Waste,” landfill markets in Wisconsin, Texas, Pennsylvania, Ohio, North Carolina, Minnesota, California, Georgia, Illinois, and Indiana would experience extremely high increases in, and post-merger levels of, concentration that exceed the DOJ/FTC Horizontal Merger Guidelines thresholds for raising significant competitive concerns.

Read the Press Release

Read RecycleWorlds' Report