Inquisitive: US Federal Trade Commission Chairman Deborah Majoras. Photo: AP
FTC chairman sides with big oil
The head of the US Federal Trade Commission (FTC) voiced skepticism about proposed legislation designed to crack down on mergers in the oil and gas industry.
FTC Chairman Deborah Majoras, whose agency is responsible for reviewing oil and gas industry mergers, said there was not enough evidence to justify singling out oil and gas companies for tougher merger enforcement, an idea proposed by Senate Judiciary Committee Chairman Arlen Specter in the wake of soaring gasoline prices and record industry profits.
"Where is the empirical evidence that these mergers are producing the high prices in the US?" Majoras asked. "The evidence does not point to mergers as the reason."
According to Reuters, Majoras made the comments while testifying before a government advisory commission that is studying possible changes to modernise US antitrust laws.
The FTC shares responsibility for merger reviews with the Justice Department's antitrust division and can move to block a deal if it concludes it will be anti-competitive.