Update March 2009: The parties decided to abandon the merger.
The FTC voted 3-0 with one Commissioner recusing to challenge the $1.4 billion merger between two of the three providers of systems used to estimate the value of junk autos and crash repairs. The Commission contended that it would lessen competition by making collusion more likely and enabling the exercise of unilateral market power in the newly merged firm, which would have more than 60% of the market. The parties, CCC Information Systems and Mitchell International Inc., vowed to fight for the merger arguing that it would not lessen competition and would benefit consumers by spurring innovation and improving sales, service, and communications as well as enabling the merged firm to offer an improved data warehouse. The FTC will seek a preliminary injunction pending administrative review.