California filed a federal antitrust complaint over the $4 billion merger of textbook publishers Houghton Mifflin and Harcourt Education Group, claiming "The merged entity now commands over 50 percent of aggregate primary and middle school textbook sales in the U.S." Combined with its competitors Pearson and McGraw, the three giants now "account for roughly 87 percent of the aggregate commerce in U.S. primary and middle school textbooks." California claims that December 2007 merger will reduce competition, raise prices and "the value of the materials and services likely will decline."Not the news that HHM would be in the mood for. (Post: Credit Rating)
Update: In the complaint (and there is a link to it on the Courthouse web page at the bottom) on page 9 the complaint is dated May 15, 2009. This is being contested under the Clayton Act which is more stringent that the Sherman Act. (And I know that sounds like I know what it means but I really don't). Here is more on the Clayton Act. Look for references to section 7.