The DOJ and the FTC released a draft of planned updates to merger guidelines that could comprehensively reform corporate mergers and acquisitions. The proposed changes are the first in over a decade.
The new guideline drafts provide new criteria for what would justify federal intervention to block mergers between companies. The proposed changes are the first in over a decade.The new guidelines are not intended to provide objective standards or regulations for agencies to follow but rather a framework for judges to turn to when reviewing cases.
"As markets and commercial realities change, it is vital that we adapt our law enforcement tools to keep pace so that we can protect competition in a manner that reflects the intricacies of our modern economy," said Assistant Attorney General Jonathan Kanter of the DOJ's Antitrust Division."Simply put, competition today looks different than it did 50, or even 15, years ago.
The guidelines focus more on the labor market and how mergers could affect employee pay, as opposed to the impact on consumers. A separate part has also turned attention toward"platform companies," likely a reference to Big Tech companies such as Meta and Reddit. It would also apply to scenarios like Twitter and Meta's conflict over Threads.
The draft reflects Kanter and Khan's more assertive approach to antitrust policy. Khan, considered a leader of the"hipster antitrust" movement, has aimed for much greater scrutiny of big businesses and anti-competitive behavior. Technology industry representatives were critical of the proposed changes, specifically those referencing platform companies."As technology and AI infuse more sectors of the economy, creating a special set of regulations that apply only to specific companies doesn't make good legal or economic sense. Without appropriate revision, these guidelines risk chilling valuable transactions in ways that would weaken U.S.
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