US: FTC releases its first formal Section 5 policy

The FTC has issued a Statement of Enforcement Principles describing the antitrust principles that guide the agency in enforcing anti-competition law.

The statement aligns with the Sherman and Clayton acts and will adhere to the principles of:

– the Commission will be guided by the public policy underlying the antitrust laws, namely, the promotion of consumer welfare;

– the act or practice will be evaluated under a framework similar to the rule of reason, that is, an act or practice challenged by the Commission must cause, or be likely to cause, harm to competition or the competitive process, taking into account any associated cognizable efficiencies and business justifications; and

– the Commission is less likely to challenge an act or practice as an unfair method of competition on a standalone basis if enforcement of the Sherman or Clayton Act is sufficient to address the competitive harm arising from the act or practice.

Though the statement was approved by the Commission, the vote was 4 to 1 with Commissioner Maureen K. Ohlhausen voting against.

Full content: The Federal Trade Commission

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