Investing.com -- The Federal Trade Commission (FTC) has given its approval to a petition filed by Enbridge Inc. (NYSE: ENB ) to revisit and set aside the Commission’s final consent order from 2017. The order was linked to Enbridge’s merger with Spectra Energy Corp (F: SEP ). The FTC has concluded that the requirements of the consent order are no longer necessary as Enbridge has divested its ownership interest in the Discovery (NASDAQ: WBD ) Pipeline, a competing natural gas pipeline.
The 2017 consent order was issued in response to Enbridge’s acquisition of Spectra, which resulted in Enbridge indirectly owning an interest in Discovery Pipeline. This pipeline is a major competitor to Enbridge’s Walker Ridge Pipeline. The FTC was concerned that Enbridge’s acquisition of Spectra could potentially give Enbridge access to sensitive competitive information about the Discovery Pipeline. Without proper safeguards, it was feared that Enbridge could engage in anti-competitive behavior, which could have undermined the Discovery Pipeline’s competitive edge or facilitated industry coordination.
The FTC’s 2017 order aimed to settle charges that the merger between Enbridge and Spectra could potentially harm competition in the market for natural gas pipeline transportation in production areas in the Gulf of America. As per the order, Enbridge was mandated to create firewalls to restrict its access to non-public information about the Discovery Pipeline. Additionally, barring two limited exceptions, board members of Spectra-affiliated companies holding a 40 percent share in the Discovery Pipeline were required to abstain from any vote involving the pipeline.
In December 2024, Enbridge requested the Commission to revisit and set aside the 2017 order, citing its sale of the minority ownership stake in the Discovery Pipeline to the majority owner of the partnership that held the Discovery Pipeline, the Williams Companies (NYSE: WMB ), Inc. The FTC’s order states that, following Enbridge’s divestiture of all interests in the competing pipeline, the competitive concerns and the remedial measures of the 2017 order intended to address them are no longer necessary.
The Commission approved Enbridge’s petition to reopen and modify the order with a 2-0 vote. The FTC continues its work to foster competition, and protect and educate consumers. It provides resources and information on competition benefits for consumers and how to file an antitrust complaint.
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