Austin Knudsen is calling on the U.S. Department of Justice to review a proposed merger between Union Pacific Railroad and Norfolk Southern Railway, citing concerns the deal could reduce competition and increase costs for American businesses and consumers.
Knudsen led a coalition of state attorneys general in sending a letter to the U.S. Department of Justice Antitrust Division, urging federal officials to closely examine the transaction before it proceeds to federal regulators for approval.
The letter asks Acting Assistant Attorney General Omeed Assefi to conduct a review that could assist the Surface Transportation Board as it evaluates the merger. According to the attorneys general, a preliminary assessment found the companies have not adequately addressed what they describe as a clear loss of horizontal competition, raising potential antitrust concerns.
“By entrenching a single rail behemoth across key east-west corridors, the deal would shackle domestic manufacturers, energy producers, and farmers with higher rates and fewer shipping options, thereby blunting their competitive edge against foreign rivals, squeezing household budgets, and weakening the supply chains that underpin our national security,” Knudsen wrote. “Accordingly, we encourage the Department of Justice Antitrust Division to carefully scrutinize the merger, applying the existing law and merger guidelines to support the Surface Transportation Board’s review of the transaction.”
The coalition argues the merger could reduce shipping options by limiting cooperation with other railroads for interline services — arrangements that allow freight to move seamlessly across multiple rail networks. The attorneys general questioned whether the companies’ commitments to keep freight connection points open are sufficient, noting such assurances may not be enforceable.
While Union Pacific has stated the merger would drive growth and efficiency, the letter also highlights what the attorneys general describe as a nearly decade-long decline in rail service, suggesting that performance history warrants closer federal oversight.
Attorneys general from Iowa, Kansas, Mississippi, North Dakota, South Dakota, and Tennessee joined Knudsen in signing the letter.
The Department of Justice has not yet publicly responded to the request. The proposed merger remains subject to review and approval by the Surface Transportation Board.
By: DNU staff