FTC v. Staples, Inc. and Office Depot, Inc.
United States District Court for the District of Columbia
190 F. Supp.3d 100 (2016)
Staples, Inc. and Office Depot, Inc. (defendants) proposed a second merger attempt, and the FTC (plaintiff) sought to enjoin it, defining the relevant market as large business-to-business customers spending over $500,000 annually on office supplies, while the defendants argued the market should include all customers and products like ink, toner, and items beyond office supplies. Evidence showed large B-to-B customers demanded specialized pricing, expedited delivery, and value-added services like IT support, and were highly sensitive to price changes, while many had already shifted their ink and toner purchases to newer managed-print-services vendors; premerger, Staples held 47.3 percent and Office Depot 31.6 percent of the defined market, a combined 79 percent.
Whether the government properly defined a submarket of large business-to-business office-supply customers, distinct from the broader retail office-supply market, in seeking to enjoin the Staples-Office Depot merger.