In order to address mounting concerns regarding illegal mergers, a joint public inquiry has been launched by certain agencies.

“We need to understand why so many industries have too few competitors, and to think carefully about how to ensure our merger enforcement tools are fit for purpose in the modern economy,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division.

On Jan. 18, the Justice Department’s Antitrust Division and Federal Trade Commission launched a joint public inquiry aimed at strengthening enforcement against illegal mergers. “Illegal mergers can inflict a host of harms, from higher prices and lower wages to diminished opportunity, reduced innovation and less resiliency,” FTC Chair Lina M. Khan said.

Evidence indicates that many industries across the economy are becoming more concentrated and less competitive.

“This inquiry launched by the FTC and DOJ is designed to ensure that our merger guidelines accurately reflect modern market realities and equip us to forcefully enforce the law against unlawful deals," Khan said. "Hearing from a broad set of market participants, especially those who have experienced first-hand the effects of mergers and acquisitions, will be critical to our efforts.” 

These problems are likely to persist or worsen due to an ongoing merger surge that has more than doubled merger filings from 2020 to 2021, according to the Justice Department.