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Commercialization

Resistance Is Futile

By Keith Cowing
October 3, 2006


Rocket Monopoly Approved – Boeing-Lockheed Alliance Likely to Increase Costs, Washington Post

“Monopolies almost always lead to higher prices, lower quality and inferior services,” Michael R. Moiseyev, assistant director of the FTC’s bureau of competition, said in a July letter that was made public yesterday. “Here, the competition that would be lost is significant, and the economic benefits that may materialize are unlikely to trump the transaction’s harm to competition.”

FTC Gives Clearance To United Launch Alliance, Lockheed Martin

United Launch Alliance Joint Rocket Venture Cleared by Federal Trade Commission, Boeing

FTC OKs Boeing, Lockheed creation of United Launch Alliance, MarketWatch

“The FTC’s order acknowledges that United Launch Alliance effectively will have a monopoly. The U.S. government is the only major customer for medium- and heavy-lift rocket launches, and Boeing and Lockheed are the only companies that currently provide such services. “The commission’s proposed consent order does not attempt to remedy the loss of direct competition between Boeing and Lockheed Martin,” the FTC said, citing the Pentagon’s support for the deal on national security grounds. The agency said the commission’s vote was unanimous.”

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