AIC Urges FTC to Withdraw Premerger Notification Proposal
concerns and, in fact, often improve competition."
concerns and, in fact, often improve competition."
The American Investment Council ("AIC") urged FTC to withdraw its proposal to "comprehensive[ly] redesign" the premerger notification form. AIC argued that FTC lacks statutory authority to demand nearly all of the information that would be newly required (see previous coverage).
In a Comment Letter, AIC asserted that the proposal is "not only harmful, but also runs afoul of both the [Hart-Scott-Rodino Act ("HSR")] and the Administrative Procedure Act." AIC stated that HSR specifically imposed limits to prevent agencies from collecting a "laundry list of information" during the premerger filing process and imposing "huge costs" on businesses as a result. AIC maintained that FTC failed to conduct any cost-benefit analysis that justifies requiring the new information that would be required under the proposal. AIC advocated for FTC to withdraw its proposal because it is "contrary to clear congressional intent, will impose enormous costs on business, disincentivize private investment, and prevent the consummation of many valuable transactions that present no competitive threat whatsoever."