Standard Parking’s Parking Empire Crumbles

WASHINGTON – The Antitrust Division has dealt a major blow to Standard Parking Corporation’s acquisition of Central Parking Corporation, requiring the company to divest its interests in certain off-street parking facilities in 29 cities across 21 states.

The proposed acquisition, valued at approximately $345 million, would have given Standard Parking a dominant market share of off-street parking facilities in certain areas, resulting in higher prices and reduced service to motorists. To prevent this, the Antitrust Division has filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia and a proposed settlement that would require Standard Parking and Central Parking to divest their interests in at least 107 parking facilities.

The divestitures are necessary to ensure that consumers in the affected cities and states receive better services, according to Acting Assistant Attorney General Joseph Wayland. “Consumers have benefited from lower parking prices because of competition between Standard and Central in many urban central business districts,” Wayland said. “These divestitures will ensure that consumers in the affected cities and states will receive better services.”

Standard Parking and Central Parking are the two largest parking management companies in the United States, competing on prices, hours of operation, parking options, security, and other terms. The proposed merger threatens to end this competition, allowing Standard Parking to exercise market power by raising prices or reducing the quality of services offered for off-street parking services.

The affected cities and states include Atlanta, Baltimore, Bellevue, Wash., Boston, Charlotte, N.C., Chicago, Cleveland, Columbus, Ohio, Dallas, Denver, Fort Myers, Fla., Fort Worth, Texas, Hoboken, N.J., Houston, Kansas City, Mo., Los Angeles, Miami, Milwaukee, Minneapolis, Nashville, Tenn., New Orleans, New York City (Bronx, Rego Park), N.Y., Newark, N.J., Philadelphia, Phoenix, Richmond, Va., Sacramento, Calif., and Tampa, Fla.

The proposed settlement requires Standard Parking and Central Parking to divest parking facilities that generate total annual revenues from consumers of about $85 million. Standard Parking is a Chicago-based company that operates in 41 states and Washington, D.C., with approximately 2,200 parking facilities containing more than 1.2 million parking spaces. Central Parking is a Nashville-based company that operates in 38 states, Washington D.C. and Puerto Rico, with approximately 2,200 parking facilities containing about 1 million parking spaces.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period.