Prohibiting Anticompetitive Mergers Act of 2022
12/29/2022, 10:03 PMSummary of Bill HR 7101
Bill 117 HR 7101, also known as the Prohibiting Anticompetitive Mergers Act of 2022, aims to address concerns about the impact of mergers on competition in the marketplace. The bill seeks to prevent mergers that would substantially lessen competition or create a monopoly in a particular industry.The legislation would give the Federal Trade Commission (FTC) and the Department of Justice (DOJ) more authority to review and block mergers that are deemed anticompetitive. It would also require companies to provide more information about their proposed mergers to ensure that regulators have all the necessary information to make informed decisions.
Additionally, the bill includes provisions to increase transparency in the merger review process and to strengthen enforcement mechanisms to ensure that companies comply with antitrust laws. This would help to level the playing field for smaller businesses and promote fair competition in the marketplace. Overall, the Prohibiting Anticompetitive Mergers Act of 2022 is aimed at promoting a more competitive and fair marketplace by preventing mergers that could harm consumers and stifle innovation. It represents an important step towards ensuring that competition remains vibrant and robust in the US economy.
Congressional Summary of HR 7101
Prohibiting Anticompetitive Mergers Act of 2022
This bill prohibits certain business mergers, modifies the procedures for reviewing mergers, and establishes procedures for reversing certain mergers.
Specifically, the bill prohibits mergers that (1) are valued at more than $5 billion in total assets, (2) result in the acquiring entity having a market share of greater than 33% (or a share of a labor market as an employer of greater than 25%), or (3) result in market concentration levels that exceed specified thresholds.
The bill also expands the authority of the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) to review pending mergers, including whether a merger is likely to harm the competitive process and the effect of a merger on relevant labor markets.
Finally, the bill authorizes the FTC and the Antitrust Division of the DOJ to retroactively unwind mergers that are prohibited under the bill or that meet certain other anticompetitive criteria such as a merger that results in a greater than 50% share of a relevant market.
