FTC v. Staples, Inc.

970 F. Supp. 1066 (1997)

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Nature of the Case

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Facts

Staples (D) is the second largest office superstore chain in the United States, with approximately 550 retail stores. Office Depot (D), the largest office superstore chain, operates over 500 retail office supply superstores that are located in 38 states. OfficeMax. Inc. is the only other office supply superstore firm in the United States. Ds entered into a merger agreement. Office Depot (D) would become a wholly-owned subsidiary of Staples (D). Ds filed a Premerger Notification and Report Form with the FTC. The Commission voted 4-1 to challenge the merger. P sought a temporary restraining order and a preliminary injunction barring the merger. Ds agreed to postpone the merger pending the Court's decision on the motion for a preliminary injunction. P called a number of live witnesses, including three industry witnesses and two economic experts. Ds offered testimony from eight live witnesses, including one economic expert, as well as an expert in retailing. Maurice Segall. P and Ds presented over six thousand exhibits, including declarations from consumers, industry analysts, economic experts, suppliers, and other sellers of office supplies. Following the conclusion of the hearing, nine states filed a joint amicus brief in support of P's motion.