Budget airline Spirit Air recently filed for bankruptcy. Spirit has been struggling ever since the pandemic shut down most air travel. However, the reason it sees no alternative to filing for bankruptcy is that the Justice Department’s Antitrust Division under President Biden —headed by Jonathan Kanter—successfully blocked a proposed merger with Jet Blue in federal court.
Like Federal Trade Commissioner Lina Khan, Attorney General Kanter advocated replacing the consumer welfare standard that guided antitrust policy since the 80s with a “holistic”” approach that looks at how a transaction affects workers, communities, and other businesses. This allowed Kanter and Khan to question any merger, acquisition, or other action that will increase a business’s market share. In other words, any business transaction.
Read Full Article »