Judiciary Committee Approves Antitrust Legislation
Washington, D.C. – Today the House Judiciary Committee approved H.R. 5402, the Standard Merger and Acquisition Reviews Through Equal Rules Act (SMARTER Act), by a voice vote. Regulatory Reform, Commercial and Antitrust Law Subcommittee Vice-Chairman Blake Farenthold (R-Tex.) introduced this legislation.
Some industries’ mergers and acquisitions are reviewed by the Federal Trade Commission, while others are reviewed by the Department of Justice. The rules for which agency reviews which transactions are not always clear, leading some to argue that which agency reviews a particular merger is sometimes decided by the flip of a coin.
Under existing antitrust law, the Federal Trade Commission and the Department of Justice use different standards in court and utilize different processes in the merger and acquisition review process. The SMARTER Act eliminates these disparities and ensures that companies face the same standards and processes regardless of which federal agency reviews their proposed transactions.
House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Subcommittee Vice-Chairman Blake Farenthold praised today’s Committee vote:
Chairman Goodlatte: “The rules for reviewing a merger or acquisition should not be determined by the flip of a coin. The SMARTER Act is a commonsense measure that ensures that companies face the same standards and processes regardless of whether the Federal Trade Commission or the Department of Justice reviews the proposed merger. This legislation is an important measure to ensure that the antitrust merger review process is fair, predictable and transparent.”
Subcommittee Vice-Chairman Farenthold: “One way we can grow our economy is by making sure businesses receive fair and consistent treatment when dealing with the federal government. My SMARTER Act does just that by implementing the Antitrust Modernization Commission’s bi-partisan recommendations to make the antitrust review process the same whether a merger is before the FTC or DOJ.”