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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I am in mid size Texas markets and operate outdoor advertising

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I am in mid size Texas markets and operate outdoor advertising billboards. Over the last 15 years a public company Lamar Advertising symbol LAMR has acquired all competitors and owns over 90% of the market share as a result of this massive consolidation. They totally control rate and it's impossible to compete since they have so much of the inventory.

Advertisers are upset because rates have more than doubled.

Is this legal?
Thank you for the post, I am happy to assist you by answering your questions. Is the company engaging in any actions that would constitute price fixing among competitors, or is it the case that the company has simply purchased the billboard inventory and set its own pricing?
Customer: replied 4 years ago.

Lamar did rapid consolidation in the late 90's to 05. After buying out companies they would have all previous owners sign lengthy non competes. They would then work with city governement and encourage new sign laws. By the time non competes expired, building new signs was next to impossible. As a result, in medium size markets, they typically own at least 90% market share and can dictate rates. Since the 08 bust, they quite acquiring competitors and to continue revenue growth for shareholders, they put all capital expenditures towards digital billboards. They began converting standard billboard faces to LED which allows up to 8 advertisers on the same sign face at 8 second intervals.


Thank you, XXXXX XXXXX description they have created a virtual monopoly and there may be antitrust implications depending on what measures were taken to compel new sign laws. While it is likely that their actions are consistent with existing laws, the problem may be in the laws insofar as they stifle competition in the marketplace. Your recourse then is to sit down with a local small business attorney to determine whether the laws are unconstitutional.
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