WASHINGTON — United Technologies Corporation (UTC) is caught red-handed in a massive antitrust scandal, with the Department of Justice announcing today that it will require the company to divest certain assets used in the production of electrical power systems and aircraft engine control systems in order to proceed with its acquisition of Goodrich Corporation. At approximately $18.4 billion, the acquisition is the largest merger in the history of the aircraft industry.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“The acquisition as originally proposed would have lessened the vigorous competition that currently exists among manufacturers of large main engine generators, aircraft turbine engines and engine control systems for large aircraft turbine engines,” said Jamillia Ferris, Chief of Staff and Counsel at the Department of Justice’s Antitrust Division.
The department’s Antitrust Division, the European Commission and the Canadian Competition Bureau cooperated closely throughout the course of their respective investigations, with frequent contact among the agencies. In addition, the Antitrust Division had discussions with other competition agencies, including the Federal Competition Commission in Mexico and the Administrative Council for Economic Defense in Brazil.
“The Antitrust Division’s dialogue with our international counterparts around the world facilitated our investigation,” said Ferris. “In particular, the division’s close cooperation with the European Commission and Canadian Competition Bureau resulted in a coordinated remedy that will preserve competition in the United States and internationally.”
The department’s complaint alleges that the proposed acquisition would lessen competition substantially in the worldwide markets for the development, manufacture and sale of large main engine generators, aircraft turbine engines and engine control systems for large aircraft turbine engines. The department said that the acquisition, as originally proposed, would combine the only two significant suppliers of large main engine generators for aircraft in the world.
Related Federal Cases
- FDIC ComE-IN Panel to Discuss CRA Modernization, Equity Issues · Washington
- NY AG James Challenges Trump Climate Rollback · Pennsylvania
- NY AG Takes Live Nation to Court Over Illegal Monopoly · New York
- NY AG Blocks Haitian Immigrant Deportation · Washington
- James Leads Suit vs. HHS on Gender-Affirming Care · New York
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News