US: House approves merger review bill

The US House approved a partisan bill last week that Republicans claim would help guarantee fairness in the government’s review of business mergers while Democrats warn it would gut an independent process that protects competition and consumers.

Now headed to the Senate, the Standard Merger and Acquisition Reviews Through Equal Rules Act passed on a largely party-line vote of 235 to 171.

“As a government watchdog, I’m always looking for ways to make government smaller, more efficient and fairer,” said Rep. Blake Farenthold, R-Texas, who sponsored the legislation.

Farenthold said his bill would have the Federal Trade Commission and the Department of Justice use the same process in reviewing mergers and acquisitions and avoid leaving the parties involved with unequal burdens.

Under the bill, the FTC would be required to satisfy the same standards DOJ must meet in obtaining a preliminary injunction to block a merger and litigate the merits of contested mergers in court under federal law as DOJ already does, rather than using its own administrative tribunals.

Farenthold said his bill also would provide the FTC with the same authority DOJ already possesses to seek an injunction in federal court.

FTC’s ability to pursue internal administrative litigation following a court’s denial of its request for an injunction would be eliminated.

Full content: Examiner-Enterprise

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