A PYMNTS Company

US: AG takes on gas mogul after failed antitrust probe

By  |  August 28, 2013

DC District Attorney General Irvin B. Nathan filed a lawsuit against various gas companies owned by mogul Eyob Mamo and ExxonMobil regarding the companies’ exclusivity agreements, more than one year after a failed antitrust probe into the matter.

Nathan is suing the companies for their exclusive-supply agreements that, he claims, increase gas prices for DC customers. According to court documents, wholesalers owned by Mamo make exclusive agreements with dealers that operate Mamo-owned gas stations. Nathan claims the practice is in violation of District laws.

According to reports, ExxonMobil is also named in the suit as it sold 29 stations to Mamo four years ago and facilitated such exclusive dealing.

The suit also claims Mamo-owned companies account for 60 percent of the District’s gas retailers, and the effect of the agreements deprives consumers of the “benefits of competition.”

Full Content: Washington Post

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