The Federal Trade Commission (FTC) has initiated legal action to prevent Platinum Equity and its subsidiary PlayPower from acquiring BCI Burke, a significant competitor in the commercial outdoor playground equipment sector. The FTC argues that this merger would lead to higher prices and diminished quality and innovation for playground equipment used by schools, parks, and other organizations.

PlayPower, which already owns several brands including Miracle Recreation Equipment and Little Tikes Commercial, aims to add Burke to its portfolio. However, the FTC's complaint highlights that this acquisition would substantially increase market concentration and eliminate the competitive rivalry that currently benefits consumers through lower prices and improved services.

According to the FTC, the playground equipment market is already highly concentrated, with five companies controlling 85% to 90% of the market share. The merger would exacerbate this issue, particularly as prices for playground equipment have been rising. The FTC emphasizes that the loss of competition between PlayPower and Burke could lead to even higher prices and a decline in product quality and innovation.

The FTC's Bureau of Competition Director, Daniel Guarnera, stated that the merger would harm communities that rely on affordable and high-quality playgrounds. The lawsuit has garnered support from attorneys general across multiple states, reflecting widespread concern about the potential negative impacts of the acquisition.

The FTC's vote to pursue a permanent injunction against the merger was unanimous, and the case has been filed in the U.S. District Court for the Northern District of California.