Posted 11/27/2023, 5:30:10 PM
Warren Calls for Antitrust Probe of Roark Capital's $10B Subway Acquisition, Citing Monopoly Concerns
- Sen. Elizabeth Warren tweeted that the government should investigate the $10B acquisition of Subway by Roark Capital, which already owns other sandwich chains
- Warren said this could create a "sandwich shop monopoly" and lead to higher prices
- However, the sandwich market remains competitive with grocery stores, convenience stores, delis, and ability to make sandwiches at home
- The original intent of antitrust laws was to prevent monopolies from gouging consumers, but new competitors can still undercut dominant firms
- Libertarians argue that government doesn't need to police "sandwich shop monopolies" as markets and competition can work instead