WASHINGTON, D.C. — The Federal Trade Commission (FTC) has officially implemented the 2023 Merger Guidelines, jointly developed with the Department of Justice (DOJ), as the operational framework for merger-review analysis. This structured approach aims to safeguard competitive markets by providing clear criteria for evaluating the potential impact of mergers and acquisitions on competition.
The updated guidelines, first released jointly by the FTC and DOJ in December 2023, emphasize stability and continuity. According to FTC Chairman Andrew N. Ferguson, maintaining consistent policies across administrations supports credibility with courts, businesses, and workers while enhancing agency enforcement efficiency. Chairman Ferguson noted that preserving the framework ensures that businesses can make long-term decisions with greater predictability, free from partisan policy shifts.
The guidelines incorporate critical elements such as defining relevant markets, assessing market concentration using tools like the Herfindahl-Hirschman Index, and analyzing potential anticompetitive effects of both horizontal and vertical mergers. Additionally, the framework evaluates the impact of mergers on innovation and market entry, while allowing for counterarguments based on efficiencies or failing firm defenses.
These principles have evolved iteratively through prior revisions in 1997 and 2010, demonstrating bipartisan support over decades. Chairman Ferguson reiterated that the 2023 guidelines reflect established case law and previous versions, reinforcing their applicability rather than introducing sweeping changes.
Looking ahead, the 2023 Merger Guidelines set the standard for merger enforcement, ensuring robust competition oversight that serves consumers, workers, and businesses alike. By committing to stability while allowing for iterative refinement, the FTC and DOJ aim to balance regulatory consistency with adaptability to evolving market dynamics.
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