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Rocket Monopoly Approved
Boeing-Lockheed Alliance Likely to Increase Costs
By Renae Merle
Washington Post Staff Writer
Wednesday, October 4, 2006; Page D01
U.S. antitrust authorities yesterday approved a plan by Lockheed Martin Corp. and Boeing Co. to merge their government rocket businesses, creating a monopoly in a multibillion-dollar market that the Federal Trade Commission acknowledged will probably lead to higher prices and lower quality.
The decision came 16 months after the plan was announced, several months longer than both firms expected, signaling the concern within the Defense Department and FTC about eliminating competition in yet another part of the military market. Defense industry consolidation has already squeezed competition out of various parts of the market -- since the 1990s the number of aircraft makers has fallen to three from eight, for example.
Boeing-Lockheed Alliance Likely to Increase Costs
By Renae Merle
Washington Post Staff Writer
Wednesday, October 4, 2006; Page D01
U.S. antitrust authorities yesterday approved a plan by Lockheed Martin Corp. and Boeing Co. to merge their government rocket businesses, creating a monopoly in a multibillion-dollar market that the Federal Trade Commission acknowledged will probably lead to higher prices and lower quality.
The decision came 16 months after the plan was announced, several months longer than both firms expected, signaling the concern within the Defense Department and FTC about eliminating competition in yet another part of the military market. Defense industry consolidation has already squeezed competition out of various parts of the market -- since the 1990s the number of aircraft makers has fallen to three from eight, for example.