FTC Moves to Block PlayPower’s Purchase of Rival Playground Maker
The FTC sued to stop PlayPower’s acquisition of Burke, saying it would lessen competition and raise costs for schools, parks and other buyers.
Photo: David Guerrero / Pexels
FTC Files Antitrust Complaint
The Federal Trade Commission announced a lawsuit to block the proposed acquisition of Burke by PlayPower, a company owned by Platinum Equity. The agency said the deal would combine two of the largest commercial outdoor playground equipment makers and could lead to higher prices and reduced innovation for purchasers such as schools, churches, parks and recreation departments.
Alleged Harm to Competition
According to the FTC’s complaint, the transaction would significantly increase concentration in a market that is already highly consolidated. The agency noted that the rivalry between PlayPower and Burke currently helps customers obtain lower prices, better service, higher quality and more innovative products. By eliminating that competition, the FTC argued the combined company could raise prices, cut back on innovation, and diminish service quality.
Impact on Buyers and Representatives
The complaint highlighted that the loss of price competition is especially concerning given rising playground costs. It also warned that independent sales representatives could face lower commissions or less favorable service terms if the merger proceeds.
Legal Proceedings
The FTC, together with a coalition of state attorneys general, filed the complaint and a request for permanent equitable relief in federal court in the Northern District of California. The agency said the merger would create a market structure that is presumptively unlawful under antitrust law and the joint FTC‑DOJ merger guidelines. The commission vote to seek a permanent injunction was unanimous.
General information only, not personal financial, legal or career advice.
Source: FTC release
