The PGA Tour and Saudi Arabia-supported challenger LIV Golf's proposed collaboration has raised antitrust concerns among officials in the US and Europe. The partnership, announced on Tuesday, is seen as potentially creating a dominant monopoly in an industry that recently gained a competitor.
- The agreement aims to resolve antitrust litigation between the PGA and LIV, but specific terms and finances are still being worked out. The proposed partnership, involving three major golf tours, is facing scrutiny from competition enforcers regarding its impact on players, sponsorships, and broadcast rights.
Why it matters
Despite the PGA and LIV's assertion that their agreement is a partnership rather than a merger, the Justice Department may not consider this distinction significant. The Justice Department recently succeeded in challenging the alliance between American Airlines and JetBlue Airways, arguing that it constituted a "de facto merger."