A PYMNTS Company

US: Abandoned railroad merger pushes campaign to end antitrust exemption

 |  October 20, 2014

Soon after it was revealed that railroad giants CSX and Canadian Pacific Railway have abandoned efforts of a possible merger, reports say the deal has pushed some lawmakers’ agenda to end the antitrust exemption for railways.

Reports say Senator Amy Klobuchar, chairwoman of the Senate’s antitrust subcommittee, released a letter in response to the companies ending their merger plans. She had previously raised concerns that the deal would harm competition and possibly raise prices within the rail industry.

”I am pleased that these companies have broken off their talks,” she said.

Klobuchar and Senator David Vitter have introduced legislation to end the industry’s current antitrust exemption. The bill, known as the Railroad Antitrust Enforcement Act, would place railroad companies under the same antitrust scrutiny as other industries to promote competition.

Full content: Hometown Source

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.