Penguin-Simon Deal Block Spotlights DOJ Antitrust Focus on Labor (1)

A federal district court ruling that blocks Penguin Random House’s $2.18 billion acquisition of Simon & Schuster bolsters the US Department of Justice’s focus on the anti-competitive impact of mergers on labor markets.

The DOJ’s antitrust division sought to block the acquisition by arguing the combined companies would dominate the market for bestselling author manuscripts. The agency’s focus on monopsony—where a single buyer dominates the market—is part of the Biden administration’s aggressive approach to antitrust enforcement.

If Judge Florence Pan’s Monday ruling survives on appeal, antitrust regulators will likely make similar labor-related arguments against consolidation in other sectors as harmful ...