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| Figure 7
Litigated Cases -- Wins | Case | Product | Market
Structure | HHI/Delta | Plus Factors |
|---|
| FTC v. Heinz (2001) | Baby food | 3-to-2 | 5,300 | Strong PNB presumption
No unique impediments
Price leadership history
Transparent sales data
Ignored econometric data
Reject efficiencies story | | FTC v. Swedish Match (2000) | Loose leaf
chewing tobacco | 3-to-2 | 4,700/1500 | Price leadership history | | FTC v. Cardinal Health (1998) | Drug wholesaling | Two parallel
mergers, reducing
major firm
from 4 to 2 | 3,100/1600
(both
mergers) | Reject ease of entry story
Reject power buyers story | | FTC v. University Health (1991) | Acute care
hospitals | 5-to-4 | 3,200/600 | Entry barriers
Ability to monitor capacity expansion
Reject power buyers story |
Figure 7 con't
Litigated Cases -- Losses
| Parties | Product
Market | Market Structure | HHI/Delta | Factors |
|---|
Union Pacific/
Southern Pacific
(STB, 1996) | Rail service | 3-to-2 | N/A | High fixed costs
Long-term contracts
No transparency
Large buyers
Econometric evidence | | NY v. Kraft | ready-to-eat
cereals | 6-to-5 | 2,300/70 | Multidimensional non-price competition
Product heterogeneity
Not a maverick
No promotion transparency
Lengthy promotion response time | US v. Archer-
Daniel-Midlands | High fructose
corn syrup | 9-to-8 | 2,200/400 | Powerful buyers
High fixed costs
Long-term contracts
No transparency
Product heterogeneity |
|
Updated September 17, 2015
U.S. Department
of Justice
