Industry News
The Department of Justice (DOJ) has issued a Civil Investigative Demand (CID) to the National Ski Areas Association (NSAA) and RRC Associates as part of its inquiry into Alterra Mountain Company’s proposed acquisition of Arapahoe Basin ski area in Colorado. Concerns have been raised as to whether the Denver-based corporation is creating a monopoly within the ski industry. This is a routine process by the DOJ for mergers of this magnitude such as Alterra acquiring one of Colorado’s most popular ski areas. The CID is an investigative tool that’s similar to a civil subpoena and seeks data from three annual ski industry surveys: the Kottke, Demographic, and Economic Analysis reports, covering seasons from 2018/2019 to 2023/2024.
After negotiations, the DOJ agreed to narrow its request to approximately half of the content from each survey, focusing solely on the Rocky Mountain Region. The data will be provided in raw form, not aggregated, meaning that it’s looking for raw data, not summaries, from ski areas that participated in these surveys.
The NSAA stated in a letter to its members, “We are writing to let you know that the data you supplied to NSAA and RRC in one or more of these studies will be included in our production submittal to the DOJ.”Addressing confidentiality concerns, the letter noted, “We are assured that the Department of Justice is bound by statute to maintain the confidentiality of this data as well, and they have further represented to us that none of it should ever be disclosed in any public document or forum.”
The DOJ’s investigation into the acquisition and whether Alterra is creating a monopoly within the ski industry could go a few ways. If it thinks the merger won’t hurt competition, it can go ahead without any strings attached. The DOJ could also say yes, but with some rules, like selling parts of the business or changing certain practices to avoid competition issues. And if the DOJ believes the merger will really harm competition, then it could stop it from happening.
The deadline for data submission was on Wednesday, June 26. The CID sent to NSAA and RRC Associates is a key part of how the DOJ is looking into Alterra Mountain Company’s purchase of Arapahoe Basin to ensure fair competition and prevent market concentration in the ski industry. The NSAA is trying to understand the impact and stay open about the process to protect member data and support the ski industry.
Full NSAA Letter
As part of the Federal Government’s inquiry relating to the acquisition of Arapahoe Basin by Alterra Mountain Company, the Department of Justice has served NSAA and RRC Associates with a Civil Investigative Demand, which is akin to a civil subpoena. This is a routine investigative tool used by the DOJ to collect information from various sources in order to study the proposed acquisition and to assess prospective impacts to competition in the region that may result.
The data that the DOJ has commanded from NSAA and RRC consists of content from each of the three annual surveys (Kottke, Demographic, and Economic Analysis) for the 2018/2019 to 2023/2024 seasons. We have been successful in working with the DOJ to narrow their request to a scope that meets their needs but does not overreach. The DOJ has agreed to reduce the scope of NSAA and RRC’s combined productions to about half of the content from each of the three surveys, and to reduce the geographic scope to just the Rocky Mountain Region.
We are writing to let you know that the data you supplied to NSAA and RRC in one or more of these studies will be included in our production submittal to the DOJ. The data will not be presented in aggregate. The raw data files have been requested. At present, the production due date is June 26, 2024.
NSAA is determined to maintain the strictest confidentiality in assembling all of the data for these studies and to ensure that the information is used for the good of all the membership. We are assured that the Department of Justice is bound by statute to maintain the confidentiality of this data as well, and they have further represented to us that none of it should ever be disclosed in any public document or forum.
— NSAA Letter to Select Members
6/26/2024
