Policy

Justice Department Sues to Block Beer Merger

Do they really not understand how much competition there is in this market?

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The Department of Justice filed a civil antitrust lawsuit today challenging Anheuser-Busch InBev's (ABI) proposed acquisition of total ownership and control of Grupo Modelo.  The department said that the $20.1 billion transaction would substantially lessen competition in the market for beer in the United States as a whole and in 26 metropolitan areas across the United States, resulting in consumers paying more for beer and having fewer new products from which to choose. 

Americans spent at least $80 billion on beer last year.  According to the department, ABI's Bud Light is the best selling beer in the United States and Modelo's Corona Extra is the best-selling import.  Because of the size of the beer market in the United States, even a small increase in the price of beer could result in billions of dollars of harm to American consumers, the department said.

(Hat tip to Keep Food Legal)