Update: Federal Judge Grants Temporary Restraining Order Blocking FanDuel DraftKings Merger
U.S. District Court Judge Ketanji Brown issued a temporary restraining order preventing DraftKings and FanDuel from completing their merger as the Federal Trade Commission (FTC) seeks a preliminary injunction.
The proposed merger would keep both websites operational. DraftKings CEO Jason Robbins will be the CEO of the merged company and FanDuel CEO Nigel Eccles will become Chairman of the Board. Even though both companies will still be operating and consumers will have a choice of which to use, the FTC argues the merger will limit competition and create a “near monopoly.” Having the companies remain competitors, according to the FTC, awards consumers the best possible prices, the highest quality of service and a larger prize pool.
The temporary restraining order will allow the FTC to secure the injunction and make their case that the merger violates Section 7 of the Clayton Antitrust Act. No date has been scheduled for the injunction hearing.