Sens. Mike Lee (R-Utah) and Peter Welch (D-Vermont) on Friday sent a joint letter to the Federal Trade Commission (FTC) and the Department of Justice urging lawmakers to stop FanDuel and Draft. He called for an investigation into the Kings' conduct.
Mr. Lee and Mr. Welch accused the two sports betting companies of collaborating to “prevent or inhibit competition,” a direct violation of federal antitrust law. Lawmakers say the alleged misconduct arose after the failed merger of FanDuel and DraftKings in 2016.
The Federal Trade Commission blocked the deal, saying it would have given both companies 90 percent market share, and FanDuel and DraftKing executives cleared their merger plans after weeks of public scrutiny. I returned it.
“Shortly after their failed merger, FanDuel and DraftKings leveraged their positions in fantasy sports to expand their dominance and become online sports betting giants. It may be making things worse,” the senators wrote.
Both companies are accused of threatening competitors through the Sports Betting Alliance industry group. FanDuel said it had no comment on the allegations in the letter, and DraftKings did not issue a statement regarding the allegations in Welch and Lee's letter.
Lee and Welch said in the letter that the two companies are working together to pressure smaller rivals to “interfere with market access” and to limit rivals' relationships with other stakeholders, such as sports leagues and key vendors. I also wrote that there was interference.
“Such coordinated attacks risk cutting off these new, innovative competitors from important technology inputs and marketing partnerships.”
The Justice Department acknowledged receiving the senators' letter but declined to comment, and the Federal Trade Commission did not immediately respond to inquiries from The Hill.
“We cannot allow online gambling companies like @FanDuel and @DraftKings to violate antitrust laws, especially as more Americans grapple with the impact this industry has on our society.” Lee posted. Social platform Along with a screenshot of the letter.
After the letter was published, DraftKings' stock price fell. According to Yahoo Finance.
