President Joe Biden expressed satisfaction on Tuesday, January 16, as a federal judge halted JetBlue’s proposed acquisition of Spirit Airlines. The judge concurred with the Biden administration’s stance that the merger would be anti-competitive.
Taking to social media, Biden celebrated the court ruling as “a victory for consumers everywhere who want lower prices and more choices.”
U.S. District Judge William Young’s decision marked a significant success for the Biden administration’s efforts to combat corporate consolidation, particularly within the airline industry.
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Biden, who has consistently pledged to scrutinize mergers that might negatively impact consumers, reiterated his commitment to ensuring fair competition. “Capitalism without competition isn’t capitalism – it’s exploitation,” Biden tweeted. “Today’s ruling is a victory for consumers everywhere who want lower prices and more choices. My Administration will continue to fight to protect consumers and enforce our antitrust laws.”
Last year, the Justice Department, under Attorney General Merrick Garland, filed a lawsuit to block JetBlue’s $3.8 billion bid to acquire Spirit, arguing that it would result in higher fares and fewer options for travelers.
Justice Department lawyers contended that JetBlue, by eliminating Spirit, an ultra-low-cost carrier, could raise prices on flights where the two airlines currently compete.
Judge Young, in his ruling, concurred with this assessment, deeming the merger illegal under antitrust law and predicting nearly $1 billion in harm to consumers annually. He emphasized that the deal would “extinguish a vital source of low-cost competitive disruption” in the airline industry.
Garland also praised the court decision, stating it was “a victory for tens of millions of travelers who would have faced higher fares and fewer choices had the proposed merger between JetBlue and Spirit been allowed to move forward.”
The victory provides momentum for Biden’s anti-monopoly agenda, following a previous federal judge’s ruling against a partnership between JetBlue and American Airlines.
While critics argue that Biden may be overreaching in his pursuit of competition, the Spirit ruling suggests that courts are inclined to support legal actions against deals deemed harmful to the public interest.
Biden, known for his opposition to corporate consolidation, asserts that robust antitrust enforcement is essential to ensure consumers have diverse choices and reasonable prices across various industries, from technology to agriculture.
