Case Description
State alleged that the merger would substantially lessen competition in skiing resorts in the State of Maine by eliminating direct competition between the area’s two largest ski resorts and by increasing the likelihood that American Skiing Company would unilaterally exercise market power by increasing prices. State alleged that the relevant product market is the sale of skiing services to persons seeking to ski for the day at a mountain with a vertical drop
of 1000 or more feet and the relevant geographic market is the State of Maine. If this merger was permitted, ASC would rank first in the Maine day ski market with 54 percent of total skier days.Consent order required a pricing system which would be in effect for the 1996-97 ski season and would be in effect for each subsequent season with the option of a triennial review by the Attorney General’s office. Justice Department earlier required ASC to divest ski resorts in Waterville Valley and Mount Cranmore before merging with S-K-I Ltd. The decree has been amended numerous times.