U.S. District Court grants FTC preliminary injunction preventing CCC merger with Mitchell
WASHINGTON D.C. – The United States District Court for the District of Columbia announced its decision today granting the Federal Trade Commission’s request for a preliminary injunction enjoining CCC Information Services Inc.’s merger with Mitchell International Inc.
On November 25, 2008, the Federal Trade Commission filed suit to block the merger of Mitchell and CCC, charging that the transaction would hinder competition in the market for electronic systems used to estimate the cost of collision repairs (known as “estimatics) and the market for software systems used to value passenger vehicles that have been totaled, known as total loss valuation systems.
“The court’s decision today was a triumph for consumers and reaffirms the vital role competition plays in our economy,” said David P. Wales, Acting Director of the FTC’s Bureau of Competition. “We brought this case because of the impressive body of evidence developed by staff demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers.”
“We are disappointed with the Court’s decision to grant the preliminary injunction. Both CCC and Mitchell maintain our belief that the merger will deliver significant benefits to customers while maintaining an already competitive claims marketplace. As agreed to with Mitchell, both companies intend to review the Court’s decision in depth and together assess the appropriate steps,” stated Githesh Ramamurthy, chairman and CEO of CCC.Alex Sun, president and CEO of Mitchell, added, “There are a number of factors that both companies need to consider, including the interests of our customers, as we contemplate next steps. These deliberations are an obvious high priority for both organizations. We appreciate the patience and support of our many valued customers and employees and will be communicating our intentions as quickly as possible.”
