President Biden on Tuesday praised a federal judge's decision to block the merger of Spirit Airlines and JetBlue Airways, calling it a victory for consumers.
“Capitalism without competition is not capitalism. It is exploitation,” Biden said in a statement. “Today's ruling is a victory for consumers around the world who demand lower prices and more choice. My administration will continue to fight to protect consumers and enforce antitrust laws.”
JetBlue offered to buy Spirit for $3.8 billion, which would have made it the fifth-largest airline. In a court filing early Tuesday, U.S. District Judge William Young said the acquisition violated the Clayton Act, which is “aimed at preventing anticompetitive harm to consumers.” “This will significantly reduce the
Mr. Biden has made increased competition a key cornerstone of his economic plan to reduce inflation, and although he is a capitalist, he has often said that capitalism without competition is exploitation.
Tuesday's decision was a major victory for the Justice Department, which had filed a lawsuit seeking to stop the merger from proceeding. Attorney General Merrick Garland announced the lawsuit in March 2023, saying the merger, if allowed to proceed, would limit options and increase ticket prices.
Young also argued that the merger would eliminate Spirit, the largest low-cost carrier in the United States, and result in higher prices for consumers.
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