On May 23, 2024, the Federal Trade Commission (FTC) and the Justice Department’s (DOJ) Antitrust Division jointly launched a public inquiry to identify serial acquisitions and roll-up strategies that have led to harmful consolidation in various sectors of the U.S. economy.
The agencies issued a Request for Information (RFI) seeking public input on corporate consolidation strategies where companies become larger by acquiring multiple smaller firms within the same or related industries. These transactions often go unreported to federal antitrust agencies, enabling firms to gain significant control over key markets without government scrutiny, potentially harming competition, consumers, workers, and innovation.
“Firms can use serial acquisitions to roll up markets, consolidate power, and undermine fair competition, all while jacking up prices and degrading quality,” said FTC Chair Lina M. Khan. “As the FTC scrutinizes these stealth consolidation schemes, we invite the public to submit information about where serial acquisitions have occurred and their effects.”
Assistant Attorney General Jonathan Kanter of the DOJ’s Antitrust Division added: “When companies use serial acquisitions and other roll-up strategies to consolidate industries while evading antitrust scrutiny, they deprive the American people of the benefits of competition. Public input about where these acquisitions have occurred and how they have impacted competition will help us identify and pursue harmful conduct.”
The RFI is open to submissions from a wide range of stakeholders including consumers, workers, businesses, advocacy organizations, professional associations, elected officials at all levels of government, academics, and others. The inquiry spans various sectors such as housing, defense, cybersecurity, distribution businesses, agriculture, construction, aftermarket/repair services, and professional services.
This RFI complements another government inquiry into how health care market transactions by private equity firms may increase consolidation while negatively impacting patient health care quality and affordability.
The FTC and DOJ are also working on amending premerger notification forms to require more detailed disclosures about acquisition histories. Additionally, their 2023 Merger Guidelines acknowledge that serial acquisitions can violate antitrust laws. The FTC's Section 5 policy statement clarifies that serial mergers or joint ventures can be anticompetitive.
Public comments will be accepted until July 22, 2024 via Regulations.gov. Submitted comments will be publicly accessible on the website.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. For more information or to file an antitrust complaint visit their official channels.
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