The Federal Trade Commission (FTC) announced that it is restoring its practice of restricting future acquisitions for merging parties that pursue anticompetitive mergers. Acquisitive firms will have to obtain prior approval from the agency before closing any future transaction affecting each relevant market for which a violation was alleged, for a minimum of ten years.
This application will protect consumers and deter merging parties from pursuing anticompetitive deals. The attempt to close an anticompetitive deal will have more severe.
For undertakings to obtain an approval, the FTC will examine several criteria such as the nature of the transaction, the level of market concentration and degree to which the transaction increases market concentration, the degree of pre-merger market power, the parties’ history of acquisitiveness, and evidence of anticompetitive market dynamics in order to be granted an authorization.
(Federal Trade Commission – 25.10.2021)
NAZALI TAX & LEGAL