Texas Border Business
By US Chamber of Commerce
A new survey of antitrust law practitioners from the USC Gould School of Law shows that legal experts have concerns about the direction of the agency.
Why it matters: The costs of the FTC’s “act first, ask questions later” agenda are becoming clear. Under current leadership, mergers cost more, take longer, and have become less certain.
By the numbers: Overall, the majority of practitioners surveyed held negative views about the FTC’s merger review process under current leadership:
· 66% responded that the FTC’s current merger enforcement practices harm innovation and competition.
· 69% believe that the FTC has become “Less receptive to arguments regarding pro-growth competitive innovation.”
· 58% responded that when reviewing a merger, the FTC has reduced or eliminated its consideration of potential efficiency gains.
Yes, and: These negative responses from practitioners resemble the perceptions of actual FTC employees as expressed in the agency’s own survey:
· From 2020 to 2021, respect for senior leadership in the agency fell 34 points from 83% to 49%.
· Over that same period, agency staff reported a 34-point drop from 87% to 53% in their belief that leadership maintained a high level of honesty and integrity
Bottom line: Mergers and acquisitions are important drivers of innovation and competition in the American economy. It is consumers who ultimately pay the price for the FTC intentionally making that process more difficult.
