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Antitrust Regulators Must Protect Fantasy Sports Competition
Law.com
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In 2017, the Federal Trade Commission and two state attorneys general took legal action to stop the merger of FanDuel and DraftKings, two corporate behemoths in the fantasy sports market. The FTC argued that the proposed merger would give one company control of nearly 95% of the market. “This merger would deprive customers of the substantial benefits of direct competition between DraftKings and FanDuel,” said Tad Lipsky, then the acting director of the FTC’s Bureau of Competition. At the end of the day, the FTC’s opposition stopped the merger in its tracks, but recent actions by the two companies raise questions as to whether the FTC should take another look at marketplace concentration—and its implications—in the fantasy sports industry.