FTC Says PlayPower’s Abandonment of Playground Merger Benefits Consumers

FTC Announces Outcome of Enforcement Action

The Federal Trade Commission’s Bureau of Competition stated that PlayPower’s decision to abandon its proposed acquisition of Burke follows the agency’s recent lawsuit aimed at blocking the merger. The FTC said the move represents a win for American consumers and is expected to keep prices lower for entities that purchase playground equipment, such as schools, churches, daycares and park departments.

Impact on Government Purchasers and Taxpayers

According to the FTC, state and municipal governments allocate substantial funds each year for playground equipment, making taxpayers major beneficiaries of continued competition between PlayPower and Burke. The agency explained that preserving multiple large manufacturers helps ensure that public buyers have options that can drive down costs while maintaining quality and service standards.

Benefits for Children and Families

The bureau noted that tens of millions of children and their families stand to gain from ongoing competition, which encourages higher quality products, better service and greater innovation in playground design. By preventing the consolidation of market power, the FTC argued that the industry will remain dynamic and responsive to the needs of communities.

Market Structure and Competition Concerns

The FTC highlighted that the five leading manufacturers, including PlayPower and Burke, together dominate the commercial outdoor playground equipment market. The agency said that the proposed merger would have reduced the number of major competitors and given PlayPower’s owners control of a significant share of the market. The commission warned that smaller manufacturers often lack the distribution networks, sales forces, safety certifications, manufacturing capacity and product breadth needed to fill the gap that would have been created by the merger.

Agency Commitment and Next Steps

Director Daniel Guarnera thanked FTC staff for assembling a strong evidentiary record and acknowledged collaboration with state partners. He affirmed that the commission will continue to protect American consumers from deals that could raise prices, diminish quality or stifle innovation.