P&G/Gillette merger
This article was originally published in The Rose Sheet
Executive Summary
Federal Trade Commission should extend its investigation of Procter & Gamble's Gillette acquisition beyond "traditional antitrust analysis" and consider the combined firm's "enhanced category captain role and its potential abuse of such a role," American Antitrust Institute recommends in a June 6 letter to FTC. AAI says it is concerned the combined entity could take advantage of its increased product offerings and the nature of store shelf competition. For example, after the merger, P&G likely will be category captain in many segments, including health and beauty aids, and retailers sometimes allow captains to oversee a range of products that extends beyond their own, AAI says. Retailers also would have fewer choices for category captains, representing another way P&G could use its position to increase sales of its own products to the detriment of competitors, AAI contends...
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Federal Trade Commission should extend its investigation of Procter & Gamble's Gillette acquisition beyond "traditional antitrust analysis" and consider the combined firm's "enhanced category captain role and its potential abuse of such a role," American Antitrust Institute recommends in a June 6 letter to FTC. AAI says it is concerned the combined entity could take advantage of its increased product offerings and the nature of store shelf competition. For example, after the merger, P&G likely will be category captain in many segments, including health and beauty aids, and retailers sometimes allow captains to oversee a range of products that extends beyond their own, AAI says. Retailers also would have fewer choices for category captains, representing another way P&G could use its position to increase sales of its own products to the detriment of competitors, AAI contends.... |