The American Bar Association Antitrust Law Spring Meeting, held at the Marriott Marquis in Washington, D.C. on March 31, 2023, saw Assistant Attorney General for Antitrust Jonathan Kanter and Federal Trade Commission Chair Lina Khan participate in a panel discussion.
In Washington, two of the nation’s top corporate regulators defended new merger enforcement guidelines that have faced criticism from the business community.
“Determining which mergers are approved and which ones are not can have significant implications for people’s lives,” said Lina Khan, Chair of the Federal Trade Commission, during an event organized by the nonprofit American Economic Liberties Project.
Khan further explained, “For workers, it could mean that their new employer has increased power that can be used to suppress wages or create unpredictable schedules. For businesses, it could mean that suppliers, previously offering competitive rates, can now raise prices.”
Joining Khan at the event was Jonathan Kanter, Assistant Attorney General for the Justice Department’s antitrust division.
“I believe that much of the panic surrounding this issue is exaggerated. We are not blocking every merger; we only block those that violate the law,” Kanter stated.
Kanter also emphasized that only a “small fraction” of mergers each year undergo investigation. “While we receive thousands of filings annually, we certainly do not challenge thousands of them,” he added.
The Federal Trade Commission and the Justice Department’s Antitrust Division jointly released the draft guidelines in July. These guidelines consist of 13 points that will be used to assess vertical and horizontal mergers. They consider factors such as increased market concentration, elimination of competition, and the risk of coordination.
One example of a pending merger awaiting FTC approval is the merger between grocery chains Kroger and Albertsons. The FTC is currently investigating potential supply chain strains for smaller grocery chains.
Senator Elizabeth Warren, known for her corporate oversight role, praised the updated merger guidelines as a necessary response to the detrimental effects of corporate monopolies.
However, Neil Bradley from the U.S. Chamber of Commerce, the world’s largest business organization, criticized the DOJ and FTC for disproportionately focusing on mergers. Bradley argued that the agencies overlook the benefits and efficiencies created by mergers and ignore their positive impact on innovation.
Public comments on the guidelines will be accepted by both agencies until September 18.
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