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FTC Asks Appeals Court to Reinstate Expanded Merger Disclosure Rule

By  |  February 19, 2026
FTC Asks Appeals Court to Reinstate Expanded Merger Disclosure Rule

The Federal Trade Commission has asked a federal appeals court to restore a rule that would require companies to provide more detailed information to US antitrust regulators before completing certain mergers, according to Bloomberg. The move follows a Texas judge’s decision earlier this month to block the regulation.

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    On Wednesday, the agency formally appealed a Feb. 12 ruling by a judge in the US District Court for the Eastern District of Texas that halted the implementation of the 2024 rule adopted during the Biden administration. The dispute is now before the US Court of Appeals for the Fifth Circuit, per Bloomberg.

    The contested regulation revised the long-standing US pre-merger notification framework, which dates back to the 1970s. Under the updated requirements, companies would need to disclose additional details about overlapping business operations, ownership arrangements and other structural information when pursuing transactions above a certain threshold. Deals valued at $133.9 million or more are subject to an initial 30-day review by the FTC and the Justice Department under the existing notification system.

    According to Bloomberg, the FTC has argued that the updated disclosure requirements are necessary to address the growing complexity of modern mergers and acquisitions. FTC Chairman Andrew Ferguson, a Republican who previously served as a commissioner during the Biden administration, supported the rule’s adoption alongside Democratic commissioners. Last year, Ferguson said the notification program needed modernization to keep pace with increasingly intricate corporate transactions.

    Read more: FTC Signals Closer Look at Big Tech Acqui-Hires as Antitrust Concerns Grow

    The agency also experienced a surge in filings as the rule’s initial February 2025 effective date approached. Per Bloomberg, Ferguson reported that the FTC received paperwork for roughly 200 transactions in the days leading up to the rollout, far above the typical weekly volume of 35 to 40 deals.

    Business groups, including the US Chamber of Commerce, challenged the regulation in federal court, arguing that the changes imposed substantial new compliance burdens without sufficient justification. The plaintiffs contended that the FTC had overstepped its statutory authority in revising the reporting requirements.

    In his order blocking the rule, Judge Jeremy D. Kernodle concluded that the agency did not adequately demonstrate that the benefits of the regulation outweighed its costs. The decision temporarily halted enforcement of the updated disclosure framework, prompting the FTC’s appeal.

    Source: Bloomberg