WA, bipartisan coalition oppose merger that would drive up playground costs
A bipartisan coalition of 12 attorneys general and the Federal Trade Commission (FTC), including Attorney General Nick Brown, today filed a lawsuit to block the merger of two of the largest makers of playground equipment, alleging the deal would raise prices for schools, parks, churches, and local governments that build or maintain playgrounds.
If successful, the action would block a proposed acquisition involving private equity-owned PlayPower and BCI Burke (Burke), two of the five companies that control up to 90% of the outdoor playground equipment market share in the United States. PlayPower and Burke focus mostly on smaller projects, making the other their fiercest and most direct competitors.
“This merger would harm our communities by increasing the cost and lowering the quality of the playground equipment Washington kids use every day,” said Brown. “We will continue to oppose anticompetitive mergers that raise prices on Washingtonians and violate the law.”
Consumers benefit from PlayPower and Burke’s competition over projects in the form of lower prices, more innovation, and higher-quality equipment. PlayPower has repeatedly acquired its competitors in the past, which has been followed by price increases ultimately borne by local consumers and taxpayers. PlayPower’s existing commercial outdoor playground portfolio includes Miracle Recreation Equipment Company, Little Tikes Commercial, and Playworld Systems, Inc.—brands PlayPower previously acquired.
The coalition argues the proposed merger is anticompetitive and violates federal antitrust law.
The complaint was filed in the U.S. District Court for the Northern District of California by Brown, the FTC, and the attorneys general of Arizona, California, Colorado, Illinois, Nevada, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, and Wisconsin.
AGO attorneys and staff who are working on this case include Assistant Attorneys General Helen Lubetkin and Travis Kennedy, and paralegal Michelle Oliver.
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