FTC closes monopoly investigation of UFC

source: ftc.gov
 

For many months there has been an ongoing, not-completely-secret investigation of UFC and Strikeforce parent company ZUFFA by the Federal Trade Commission to determine whether ZUFFA holds a monopoly position in the space. If a monopoly were held to exist, a break up of the company would be a likely consequence.

For months company owners Lorenzo Fertitta and Dana White described the idea as ridicullous. Never the less, the idea circulated widely, perhaps most notably in content generated by The Culinary Workers Union Local 226, which has for years failed in its attempts to unionize the Station group of hotel-casinos in Las Vegas. Station Casinos is owned by Frank and Lorenzo Fertitta, who are also majority owners of the UFC, and thus the UFC became an exceedinlgy unlikely target for a union action.

The FTC investigation was also mentioned in a recent ESPN Outside the Lines company profile that widely criticised.

Now the FTC has announced that the investigation is closed, as detailed in a letter to the New York City-based law firm Axinn-Veltrop-Harkrider, LLP, which had been retained by Zuffa as its representation before the FTC.

January 25, 2012
Office of the Secretary
Stephen Axinn, Esq.
Axinn Veltrop, and Harkrider LLP
1330 Connecticut Ave., NW
Washington, DC 20036

Re: Acquisition of Explosion Entertainment, LLC (Strikeforce) by Zuffa, LLC (UFC) FTC File No. 111 0136

Dear Mr. Axinn:

The Federal Trade Commission’s Bureau of Competition has been conducting a nonpublic investigation to determine whether Zuffa, LLC’s acquisition of Explosion Entertainment, LLC may violate Section 7 of the Clayton Act or Section 5 of the Federal Trade Commission Act.
Upon further review of this matter, it now appears that no further action is warranted by the Commission at this time. Accordingly, the investigation has been closed. This action is not to be construed as a determination that a violation may not have occurred, just as the pendency of an investigation should not be construed as a determination that a violation has occurred. The Commission reserves the right to take such further action as the public interest may require.

By direction of the Commission.

Donald S. Clark Secretary

Related MMA gear from the UG Store

 

Century Official UFC Fight Gloves

Century Official UFC Fight Gloves

Only $59.99

UFC Elite Series MMA Training Gloves

UFC Elite Series MMA Training Gloves

$89.99 $62.99

 

tags: UFC   FTC   



Get the MMA Underground app. for iPhone and Andriod devices.
iPhone Application Andriod MMA Underground Application

Recent Comments »

TheVileOne site profile image  

2/1/12 10:05 PM by TheVileOne

That's more asinine than the article Gregg Doyel wrote for CBS Sports.com. As far as public relations work, did or did Dana White not pal around with senate majority leader Harry Reid?

EvilMaster site profile image  

2/1/12 7:06 PM by EvilMaster

*Phone Rings*Dana White: Fuck?Government stooge: Hello there Mr White, in return for all the military sponsorship money we have given your company. We need you to do some public relations work for us as a favor.Dana White: I'm fuckin sleeping over here!!. Call my fucken assistant you fucken fucker!!Government Stooge: This is a very important matter Mr White. Something that you need to handle personally. I am afraid, I must insist.Dana White: Insist my balls in your throat fucker! I am Dana White, I don't take orders from anybody!! Fuck you and your fucken shadowy fucken bosses as well.Government Stooge: I am sorry that you feel that way Mr White. Perhaps we can change your mind on this matter.Dana White: You can't change shit fucker! Go fuck your fucken mother you fucken fucker. And don't ever call me when I am fucken sleeping again or I'll send Chuck over there to knock your fucken ass out!!*Dana Slams Phone Down*A couple weeks later....ESPN: Monopoly investigation into UFC.BBC: FTC launches investigation into UFC.Reuters: UFC vs The Government.Yahoo Sports: Federal Investigation Into Zuffa llc.*Phone Rings*Dana White: Fuck?Government Stooge: Hello there Mr White, have you reconsidered our request?Dana White: Ummmm...This investigation is gonna hurt us man. Government Stooge: So Mr White, would you like to know what you need to do to make it go away?Dana White: I'm listening.

StratTone site profile image  

2/1/12 11:25 AM by StratTone

Although I don't agree about the monopoly I do agree about your point.

un3rgr0und site profile image  

2/1/12 8:32 AM by un3rgr0und

Damn, this will be a shitty way for a lot of UFC/Dana White haters to start the day

mmavixen site profile image  

1/31/12 11:59 PM by mmavixen

 Here here/

Dr Violence site profile image  

1/31/12 11:40 PM by Dr Violence

Did anyone notice the name of the lawyer, Stephen Axinnwould make for a good Abbot & Costello routineWhich one of you is Axinn?Who's Axinn?I'm axin, are you Axinn? No you're axin, I'm axin who's AxinnThat's what I'm axin, who's Axinn?You're axinetc

gatorlaw site profile image  

1/31/12 11:29 PM by gatorlaw

 And anyone who knew anything about antitrust law was not surprised at all.

91W209 site profile image  

1/31/12 11:22 PM by 91W209

Hahaha, josh gross is so sad now.

TheVileOne site profile image  

1/31/12 10:48 PM by TheVileOne

The investigation wasn't about sponsorships. It was whether the UFC violated anti-trust laws through their acquisition of Strikeforce. I imagine there would have to be a completely new investigation for them to probe the former.

TheVileOne site profile image  

1/31/12 10:48 PM by TheVileOne

edit, accidental post.



 

The newest MMA equipment and apparel!
The best MMA gear and apparel on sale now!
Revgear MMA gear and apparel