FTC Maintains Strict Merger Standards Under New Chairman
Andrew Ferguson, the recently appointed Chair of the Federal Trade Commission (FTC), has reaffirmed stricter merger policing guidelines established during the Biden administration.
Biden-Era Guidelines Adopted
Ferguson has instructed FTC staff to adhere to merger guidelines adopted in 2023 under former Chair Lina Khan. These guidelines broaden the circumstances for antitrust review, including:
* Lowering thresholds for presuming a merger violates antitrust law
* Considering potential labor market impacts of mergers
Consumer Welfare No Longer Primary Standard
The new guidelines shift away from consumer welfare as the primary standard for merger review. This departure from prior approaches emphasizes a more rigorous scrutiny of potential competition concerns.
Increased Antitrust Enforcement
Ferguson's decision follows a trend of bipartisan support for enhanced antitrust enforcement, which began during Trump's first term. The FTC and Department of Justice (DOJ) brought 118 merger challenges between 2017 and 2019, more than during Biden's first three years in office (108 challenges).
Recent Merger Challenges
The Trump administration has already demonstrated its antitrust aggressiveness. The DOJ has filed a lawsuit to block Hewlett Packard Enterprise's (HPE) acquisition of Juniper Networks (JNPR), alleging the deal would lessen competition in the enterprise wireless networking market.
HPE and Juniper dispute the DOJ's analysis, arguing that the merger would promote competition and innovation. The case highlights the FTC's continued focus on scrutinizing potential anticompetitive effects.
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