Moss Says “Devil is in the Details” on a Merger Remedy that Fully Restores Competition in AB InBev/SABMiller Merger Testimony to Senate Judiciary
Today, American Antitrust Institute President Diana Moss testifies before the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights on the proposed AB InBev/SABMiller merger.
Moss’ testimony sketches the landscape of the U.S. beer market that has been marked by significant consolidation during the past 10 years. Allowed to proceed unremedied, the deal would put almost 75 percent of the U.S. beer market in the hands of one company. With significant control over wholesale distribution, the merged company could thwart competition from smaller rivals such as craft brewers, further raise beer prices to consumers, reduce choice, and sacrifice innovation in this important sector.
Moss highlighted the need for details on the proposal to divest SABMiller’s 58 percent share of the MillerCoors joint venture to partner Molson Coors. As is, the divestiture plan would not fully restore competition lost by the merger. Moss’ testimony outlines several features of a remedy that would create a fully independent Molson Coors.
The AAI has produced substantive economic and legal analyses of competition in the beer industry during the past several years. Access the AAI’s beer-related work here. Download today’s testimony here.
President, American Antitrust Institute