Question: Waste Management Inc WMI a company in the solid waste

Waste Management, Inc. (WMI), a company in the solid waste disposal business, acquired the stock of EMW Ventures, Inc. EMW was a diversified holding company, one of whose subsidiaries was Waste Resources. WMI and Waste Resources each had subsidiaries operating in or near Dallas, Texas. The government challenged the merger on the theory that it violated § 7 of the Clayton Act. The trial court agreed. In finding a § 7 violation, the trial court defined the relevant market as including all forms of trash collection (except at single-family or multiplefamily residences or small apartment complexes) in Dallas County plus a small fringe area. The combined WMI and Waste Resources subsidiaries had a 48.8 percent share of the relevant market. The trial court held that this market share raised a presumption of illegality and that WMI had not rebutted the presumption. WMI appealed, arguing that new firms could easily enter the trash collection business in the relevant geographic area and that the trial court should have regarded this ease of entry as a sufficient rebuttal of the presumption of illegality. Was WMI correct?

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  • CreatedJuly 16, 2014
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