Waste Management

1. bureaucracy

a) The previous company was no longer able to provide recycling services, creating a gap in service

b) The two cities refused to sign the new contract, meaning that they did not transition to Waste Management

c) This temporary gap lead to hold-offs as the cities were stuck in a constant limbo of not being able to get a new deal

2. Cost

1. Recycling plants are expensive. Costs can be North of a billion to create a new plant, and more than 500 million to expand an incinerator. This means recycling companies offer services at a steep rate to recoup cost.

2. Waste management asked for $96 dollars per ton, a $40 dollar increase from previous cost, which the cities felt could be better spent elsewhere.

3. The proposed deal would allow Waste Management to raise prices over time, which the cities felt was not justified

Monopolization

1. Waste Management purchased Sun Trust, which meant that they had no competition and therefore no incentive to lower prices

2. Waste Management purchased the recycling facility that serviced the two cities, meaning that no other company could provide recycling services to those cities barring significant investment

3. Their agreement (sub-contract) gives them the ability to control recycling within the county, which suggests a violation of antitrust law