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Divestitures may not preserve competition when firms sell off weaker business lines, US FTC’s Heimert says

By Ben Brody and James Panichi ( August 21, 2024, 20:21 GMT | Insight) -- Despite US competition enforcers’ preference for structural remedies over behavioral ones, the Federal Trade Commission and Justice Department have started to find that even some divestments don’t adequately preserve competition, according to an FTC official. Speaking to an Australian conference, Andrew Heimert, the agency’s counsel for Asian competition affairs, said that “skepticism” had arisen around structural fixes for various reasons, including merging companies that choose to sell off weaker assets. Despite US competition enforcers’ preference for structural remedies over behavioral ones, the Federal Trade Commission and Justice Department have started to find that even some divestments don’t adequately preserve competition, according to an FTC official....

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