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Office Depot Merger

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In September of 1996 superstores Staples and Office Depot, had developed a proposal to merge, in the following month the companies had gone and met with the FTC to let the agency know that both companies had an intention to merge into one company. Both Staples and Office Depot are both office-supply stores, and had decided to merge in order to keep the costs low as well as keeping their consumers happy. The FTC, however, didn't like the companies' idea of merging so the staff decided to launch an investigation of the proposed merger in order to determine if the companies would violate the anti-trust laws. This, however wasn't approved by the FTC, and a lawsuit was soon followed, questioning the companies, which resulted with both Office Depot and Staples challenging the FTC's decision vigorously. This case was set before both an administrative judge and a federal judge. However, the federal judge was considering whether or not to issue an injunction during this time. …show more content…

Office Depot and Staples, had worked so hard on making mutual agreements and knew that the FTC wouldn't hold back on any "evidence" that they found and it would be used in a negative way. Office Depot and Staples wouldn't have their reputation put at risk, and had fought hard for the injustice. Both Office Depot and Staples had stated: "The FTC unfairly uses a narrow definition of our "product" as well as who our competitors are. Staples and Office Depot together sell only 5.5% percent of office-supply products in the nation. Merging the two firms would not substantially increase concentration or lessen competition." (Market Structures paper, page

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