FTC Approves Final Order Settling Charges that General Electric's Acquisition of Avio Aviation's Business Would be Anticompetitive in Market for Airbus’s A320neo Aircraft Engines

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Following a public comment period, the Federal Trade Commission has approved a final order settling charges that General Electric Company’s acquisition of the aviation business of Italy’s Avio S.p.A would be anticompetitive. The FTC’s complaint alleges that GE’s acquisition of Avio would substantially lessen competition, giving GE the ability and incentive to disrupt the design and certification of Avio’s accessory gearbox, or AGB, a critical component in Pratt & Whitney’s PW1100G engine. GE -- through CFM International, its joint venture with France’s Snecma S.A. -- and Pratt & Whitney are the only two firms that manufacture engines used on Airbus’s A320neo aircraft.

The settlement with the FTC, first announced in July 2013, prevents GE from interfering with Avio’s development of the AGB for the PW1100G engine, or accessing Pratt & Whitney’s proprietary information about the AGB that is shared with Avio.   

The Commission vote approving the final order was 3-0-1, with Commissioner Joshua D. Wright not participating.  (FTC File No. 131-0069; the staff contact is Stephen W. Rodger, Bureau of Competition, 202-326-3643; see press release dated July 19, 2013)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

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