DOJ and FTC to Investigate Companies Engaged in “Serial Acquisitions,” Agencies Seek Information and Feedback

The Federal Trade Commission (FTC) and Justice Department (DOJ) are seeking information as part of a joint inquiry into corporate consolidation strategies, such as “serial acquisitions.”

According to the FTC, these strategies happen when a larger organization buys smaller companies in the same or similar business sectors, allowing the large company to grow and potentially dominate the market. The FTC and DOJ say this happens across many industries and can harm competition. It can also hurt consumers and workers and even stunt innovation.

“Firms can use serial acquisitions to roll up markets, consolidate power, and undermine fair competition, all while jacking up prices and degrading quality,” said FTC’s chairperson, Lina M. Khan. “As the FTC scrutinizes these stealth consolidation schemes, we invite the public to submit information about where serial acquisitions have occurred and their effects.”

According to the FTC, companies frequently don’t have to report serial acquisitions to federal antitrust agencies.

“When companies use serial acquisitions and other roll-up strategies to consolidate industries while evading antitrust scrutiny, they deprive the American people of the benefits of competition,” says Assistant Attorney General Jonathan Kanter of the DOJ’s antitrust division.

The FTC and DOJ have officially submitted a joint Request for Information to gather information from the public. They want to hear from a “wide range of stakeholders” such as consumers, workers, businesses, advocacy organizations and professional and trade associations.

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6 Responses to DOJ and FTC to Investigate Companies Engaged in “Serial Acquisitions,” Agencies Seek Information and Feedback

  1. Ian says:

    Is this like the sanitation fee fraud case where Safelite just throws a bunch of money at it and this goes away?

    • Scott Harkey says:

      Ian, have you contacted your home state’s Insurance Commissioner about that fraud case? Has everyone else? The commissioner in my home state of N.C. has been notified. Fraud, steering, dishonesty, the fox guarding the henhouse is ruthless.

  2. dale williams says:

    I believe Glass Companies have a lot of info out there regarding Safelites interference with pricing.Also how about colluding with the Insurance Co’s The Insurance Industry has been using them as there Bully to beat down the Glass Co’s for years!!

  3. Tom says:

    Day late and a million short

  4. Belron’s the parent company of Safelite specializing in auto glass. They have purchased hundreds of small and medium auto glass servicing businesses. They need to be broken up.

  5. Kris Griffin says:

    At the end of the day this will only benefit the Government and will hurt employees of these corporate consolidation monopolies. How is this supposed to help??? Fining Safelite, make them close the branch in an area that they forced out competition, who does that hurt or help? I think they should be made to sell to a small business with some sort of SBA grant to not cost employees jobs, now no installation company in an area. I as much as the next independent dislike SGC/Belron, the whole idea behind a third-party-administrator is to be a disinterested party in the claim handling to dissuade/combat insurance fraud and payment issues. And Belron is and has continued to be a tough cookie to crack legally speaking as they are not a US based company. Hard to sue someone who doesn’t live here. This unfortunately in my opinion is a way to fine them to divert funds away from the USA’s people. The biggest thing I think we can do as an industry would be reporting any kind of insurance fraud perpetuated by SGC or at that any third party administrator to DOI. A company should not be allowed to dictate another companies billing and business practices due to being a corporate monopoly. All truth I am surprised SGC has not just somehow underhandedly merged all of the companies it administrates claims for into “Belron Insurance Companies”

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