Government sues to block Bud merger with Corona beer

(AXcess News) Dallas – It looks like prohibition in reverse, but the Obama administration doesn’t want Budweiser to control the maker of Corona beer, insisting that the outcome would be higher prices at the tap.

The crux of the government’s concern centers on the fact that the shelfspace of beer is dominated by a handful of players and any further concentration of beer’s marketshare would only create a monopolistic marketplace.

AB InBev already controls 200 brands of beer and MillerCoors comes in second behind the maker of Bud.

Government sues to block Bud and Corona merger
Government sues to block Bud and Corona merger

In the past when the two majors raised prices the maker of Corona didn’t and as a result took marketshare from Bud and MillerCoors, according to the federal government. So if you can’t get the competition to step to your tune the best course of action is to buy them out and that’s exactly why the federal government filed its lawsuit to block the sale.

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