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US: FTC report finds no cause for concern in ethanol market

By  |  November 27, 2013

The Federal Trade Commission released a report Tuesday that found an unconcentrated ethanol market in the nation, the same conclusion the FTC has found since the regulator began issuing such reports in 2005.

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    According to the authority, 156 companies either currently or will soon produce ethanol in the next 12 to 18 months. The largest of those companies holds just 10.9 percent of the market share, according to the report.

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    The findings suggest that the risk for price-fixing, market manipulation and various other forms of anticompetitive collusion are low thanks to a high number of competitors. Further, the FTC found, the low barrier to entry of ethanol importation further lowers such risks.

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