{"id":4047,"date":"2022-01-18T22:44:06","date_gmt":"2022-01-18T22:44:06","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/18\/ftc-and-justice-department-ask-public-for-input-on-modernizing-merger-guidelines\/"},"modified":"2022-01-18T22:44:06","modified_gmt":"2022-01-18T22:44:06","slug":"ftc-and-justice-department-ask-public-for-input-on-modernizing-merger-guidelines","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/01\/18\/ftc-and-justice-department-ask-public-for-input-on-modernizing-merger-guidelines\/","title":{"rendered":"FTC and Justice Department ask public for input on modernizing merger guidelines"},"content":{"rendered":"

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The U.S. Federal Trade Commission and the Department of Justice today <\/span>launched<\/span><\/a> a joint public inquiry that could lead to the overhaul of the regulatory guidelines governing company mergers.<\/span><\/p>\n

An update to merger guidelines would have the potential to affect acquisitions in the tech sector. Several of the tech industry\u2019s leading players are already facing increased regulatory scrutiny over matters such as <\/span>in-app payments<\/span><\/a>, <\/span>online advertising<\/span><\/a> and chip industry <\/span>competition<\/span><\/a>.\u00a0<\/span><\/p>\n

The joint public inquiry announced by the FTC and Justice Department today will run until March 21. Through the inquiry, the FTC and Justice Department will seek to collect input from the public on potential ways that antitrust guidelines concerning mergers could be improved.\u00a0<\/span><\/p>\n

\u201cThis inquiry launched by the FTC and DOJ is designed to ensure that our merger guidelines accurately reflect modern market realities and equip us to forcefully enforce the law against unlawful deals,\u201d\u00a0said FTC Chair Lina Khan. \u201cHearing from a broad set of market participants, especially those who have experienced first-hand the effects of mergers and acquisitions, will be critical to our efforts.\u201d<\/p>\n

The FTC and Justice Department have listed several antitrust topics on which they seek to receive input from the public. One of the topics on the agenda is the digital economy.<\/span><\/p>\n

\u201cThe agencies seek information on how to account for key areas of the modern economy like digital markets in the guidelines, which often have characteristics like zero-price products, multi-sided markets, and data aggregation that the current guidelines do not address in detail,\u201d the official announcement for the inquiry stated.<\/span><\/p>\n

Additionally, the FTC and Justice are seeking feedback on whether the methods used to evaluate the market impact of a merger should be updated. Regulators rely on various metrics to determine if a proposed acquisition would harm the competition. The FTC and Justice are asking for suggestions on additional metrics and factors that could potentially be used to evaluate if a deal may be anticompetitive.<\/span><\/p>\n

Another focus of the inquiry is finding potential ways to improve how the agencies approach matters involving \u201cpotential and nascent competitors.\u201d The phenomenon of established companies acquiring emerging rivals is drawing growing regulatory attention. Last month, the FTC, 46 states, the District of Columbia and Guam <\/span>sued<\/span><\/a>\u00a0Meta Platforms Inc. over the company\u2019s acquisition of rivals in the social media market.<\/span><\/p>\n

The newly launched public inquiry also covers a number of other antitrust topics. Individuals, private sector organizations, government agencies and others interested in providing input will have 60 days to submit their feedback.\u00a0<\/span><\/p>\n

\u201cThe information will be used by the agencies to consider updates and revisions to the guidelines,\u201d the FTC and Justice Department stated. \u201cIf such revisions are contemplated in light of the evidence received and the agencies\u2019 independent research, the agencies will publish proposed guidelines for public comment.\u201d<\/span><\/p>\n

Image: FTC<\/h5>\n
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