When the US Federal Trade Commission cleared the merger of the number two and number 4 rental car companies – Hertz and Dollar Thrifty – regulators did so with the requirement that the combined company divest Advantage Rent A Car.
But four months after clearance was given, Advantage filed for bankruptcy. The development is one that antitrust experts say they saw coming, and is a major failure for the FTC.
One antitrust lawyer, Allen Grunes from GeyerGorey LLP, described the ordeal as a “screw up.”
”It’s a huge embarrassment that it happened this quickly,” he said, referring to the bankruptcy filing of Advantage, the company meant to maintain competition against the combined Hertz/Dollar Thrifty firm.
While some criticize the FTC for inadequately preserving competition in the rental car market, Advantage denies that the move is a failure. Advantage CEO Tom McDonnell told reporters there are plans for the company to be sold to a new buyer.
When the FTC ordered the Advantage spin-off, industry expert Sandy Miller was appointed CEO. But just one month later, he was fired. Reports say Miller warned the FTC when it gave preliminary clearance of the deal about one year ago that the move would backfire.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI