Office Chains Push Back Against FTC Block

FRAMINGHAM, MA—Citing what they see as “a flawed analysis and misunderstanding of the intense competitive landscape” in which they operate, Staples Inc. and Office Depot Inc. said Monday they would contest the Federal Trade Commission’s move to block their merger. The FTC’s 4-0 vote to file an administrative complaint challenging the merger on antitrust grounds marked the second time in two decades the commission had opposed a union between the two office-supply superstores.

“The commission has reason to believe that the proposed merger between Staples and Office Depot is likely to eliminate beneficial competition that large companies rely on to reduce the costs of office supplies,” says FTC chairwoman Edith Ramirez. “The FTC’s complaint alleges that Staples and Office Depot are often the top two bidders for large business customers.” A merger would, among other results, effectively prevent other office supplies vendors, manufacturers, wholesalers or online retailers from expanding or entering the market, according to the FTC’s complaint.