FTC Overplayed Mattress Firm Clout in Deal Suit, Judge Says (1)

A deal between the world’s largest mattress supplier and the US’s biggest mattress specialty retailer doesn’t raise antitrust concerns considering the market realities of the industry, a Texas federal judge said in an unsealed opinion.

The Federal Trade Commission alleged Tempur Sealy International Inc.’s purchase of Mattress Firm would lead the combined firm to stifle competition and raise prices in the market for premium mattresses. The agency supported its case with records showing that Tempur Sealy executives saw Mattress Firm as a “kingmaker” because of its retail footprint.

But Mattress Firm “isn’t the dominant and necessary retail force ...