FTC Revises Thresholds for Interlocking Directorates

The FTC revised its thresholds relating to the prohibition against interlocking directorates under Section 8 of the Clayton Act.

Under the revised thresholds, a director or officer "interlock" between competitor corporations will be unlawful if each competitor has combined capital, surplus and undivided profits of more than $38,204,000, unless the competitive sales of either corporation are less than $3,820,400. (Other de minimis exception tests not subject to annual revision also may apply.)

The updated thresholds take effect immediately.