New leadership in the Trump Administration at the Federal Trade Commission and the Department of Justice has quickly made changes to policies established during the Biden era that impacted merger activities. Director of Competition Policy Fred Ashton has provided insights into these developments, indicating a blend of traditional consumer welfare approaches with targeted enforcement.
Under the guidance of Chair Andrew Ferguson at the FTC and Assistant Attorney General Gail Slater at the DOJ, several Biden-era policies have been dismantled. These include ending a moratorium on early terminations and reinstating remedies to address competitive concerns in merger investigations. The agencies also announced procedural changes aimed at increasing predictability in merger reviews, signaling a potentially less adversarial stance.
However, certain key policies from previous years remain intact. The 2023 Merger Guidelines continue to set high standards for legal mergers, while the 2022 Section 5 policy statement broadens agency authority interpretations. Additionally, new rules under the Hart-Scott-Rodino Act premerger notification program still elevate costs associated with merger activity.
These actions suggest that both agencies maintain their commitment to strong and targeted merger enforcement. This approach is likely to integrate traditional consumer welfare strategies with elements introduced during Biden’s presidency, aligning with conservative ideological objectives.
