Opening the Door on Breakups

Private parties have a right to challenge a merger after it has been completed, the Justice Department (DOJ) told an appeals court, in a case with big implications for future antitrust break-ups. Jeld-Wen, one of the country’s biggest manufacturers of doors, is seeking to overturn a court order that would unwind its 2012 merger with rival Craftmaster International and require it to pay $176 million in lost profits to Steves & Sons, a customer who sued over the deal. The case marks the first time a third party has challenged a merger and persuaded a court to unwind the deal after it was consummated. The case’s outcome will matter for Google, Facebook, Amazon and other large technology firms accused of using acquisitions to become dominant in their respective markets. Antitrust officials in both the Federal Trade Commission and DOJ are reviewing their past mergers to assess their effect on digital advertising and commerce, and a long line of rivals including e-commerce sites and online publishers have grievances they could conceivably try to bring to court.