According to
the report, a closer look at what happened in the wake of such mergers could help provide federal merger cops with more insight about the effects of such deals, and might translate into a better chance of predicting which mergers should be stopped by the agency.
The GAO bashed the FTC about six years ago with a study that said the antitrust regulators had dropped the ball, allowing mergers that directly caused consumers to pay higher prices at the pumps. In that study, the GAO said that gas prices went up about 2 cents per gallon after most mergers.
Former FTC Commissioner Tim Muris launched a vigorous defense of the agency's track record, and chastised the GAO for a slapdash economic analysis. At the time, Muris noted that while some large oil company mergers were approved, including some blessed by his predecessor, Robert Pitofsky, most included extensive divestiture orders.
Moreover, the FTC has long said that gasoline prices are affected by several issues, including inelastic consumer demand and increasing pressure from an increasing global demand for crude.
According to GAO, the new recommendations were submitted to the FTC, which is currently conducting a self-evaluation program, including looking at how it uses cutting edge economics analysis as the agency prepares to celebrate its centennial in 2014. The FTC has said the report will be considered as part of that effort, according to the GAO. -
Cecile Kohrs Lindell
The Government Accountability Office Friday announced a report that suggests the Federal Trade Commission should conduct more retrospective analysis of petroleum industry mergers.
