PlayPower, Inc. and BCI Burke Company, LLC, two of the top five largest national suppliers of commercial outdoor playground equipment, have abandoned their proposed merger following an antitrust challenge from California and a bipartisan coalition of states.
California Attorney General Rob Bonta, as part of a coalition of 12 states and the Federal Trade Commission (FTC), filed a lawsuit last week alleging the merger was illegal and would reduce competition, leading to higher prices and lower quality in the commercial outdoor playground equipment market.
The market for commercial outdoor playground equipment is already highly concentrated, with five main competitors accounting for approximately 85 to 90 percent of sales nationwide. The proposed merger would have combined two of the top five suppliers. According to the lawsuit, reduced competition would give the merged company the ability to raise prices without improving quality or risking loss of customers to competitors.
Most purchases of commercial outdoor playground equipment are funded through government and taxpayer dollars, primarily by schools and parks and recreation departments, meaning price increases would fall on the public, the attorney general's office said.
"The end of the proposed PlayPower/Burke merger is a remarkable victory for taxpayers, our schools, local parks and recreation departments, and our kids," Bonta said.