State Antitrust Scrutiny of Mergers and Labor Monopsony

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State Antitrust Scrutiny of Mergers and Labor Monopsony

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Antitrust enforcement is increasingly scrutinizing labor markets, with both federal and state regulators examining how mergers and other business activities affect workers. This focus includes the concept of “labor monopsony,” which refers to a market condition where a single or limited number of employers have substantial power over wages and working conditions, potentially leading to lower pay and reduced employment. This trend in antitrust review has been ongoing since the Obama administration and has intensified under the Biden administration.

Several high-profile mergers are currently under review with labor market implications being a key consideration. The proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance, for example, has raised concerns among various stakeholders. A report submitted to the Los Angeles County Board of Supervisors in August 2026 estimated that this merger could put 10,360 “job-years” at risk in Los Angeles County alone by 2030, including direct and indirect film and television jobs. This potential impact stems from the combined company’s plans to achieve an estimated $6 billion in annual cost “synergies.” The Writers Guild of America also announced a lawsuit in July 2026 to block the merger, citing concerns about its effect on labor markets for its members.

Another significant transaction under review is the Union Pacific–Norfolk Southern merger, announced on July 29, 2025, which aims to create the first single-line transcontinental railroad. This proposed $85 billion acquisition has faced opposition from rival railroads, labor unions, and a coalition of stakeholders, including seven state attorneys general, who argue it could reduce competition and increase costs for shippers and consumers. The Surface Transportation Board (STB) is reviewing the merger, which requires demonstrating that it would enhance competition, a higher bar than most mergers.

In the healthcare sector, Boston Scientific’s planned $14.5 billion acquisition of Penumbra, announced in January 2026, is also undergoing regulatory review. While analysts suggest there is limited product overlap, which may reduce antitrust concerns, the deal still requires customary antitrust and regulatory clearances. Penumbra shareholders approved the merger in May 2026.

The uniform rental industry is also seeing antitrust scrutiny with Cintas’ proposed $5.5 billion acquisition of UniFirst. UniFirst shareholders approved the cash-and-stock deal in June 2026, but the Federal Trade Commission (FTC) issued a “Second Request” for additional information, extending the antitrust waiting period. The FTC has been interviewing competitors in the uniform rental market as part of its review. Cintas has also hired a lobbying firm to navigate the antitrust process.

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