FTC’s Crackdown on Serial Mergers Will Put Consumers at Risk

Arlington, VA — The American Consumer Institute (ACI), a nonprofit organization dedicated to protecting consumer interests, has submitted its comments to the Federal Trade Commission (FTC) and the Department of Justice (DOJ) in response to their Request for Information (RFI) on serial acquisitions and roll-up strategies across the U.S. economy. ACI’s comments caution against unnecessary regulatory overreach and emphasize the importance of evaluating mergers on a case-by-case basis using established economic principles.

Read the full comment here.

Key Takeaways:

• Burden of Duplication: Introducing separate analysis for serial acquisitions would duplicate existing procedures and impose unnecessary burdens without clear benefits, as current antitrust enforcement already addresses concerns such as market concentration and competition.
• Mixed Research Results: Limited and mixed research on serial acquisitions provides insufficient support for treating them as a distinct category requiring new regulatory approaches. Existing tools and methodologies are adequate for assessing their impacts.
• Case-by-Case Evaluation: The ACI advocates for the continued use of case-by-case evaluation and rule of reason analysis to allow competitive deals to proceed while preventing harmful mergers. This approach recognizes the complexity and variation in merger outcomes.

The American Consumer Institute urges the FTC and DOJ to refrain from expanding regulatory frameworks based on speculative theories that lack strong empirical support. Instead, ACI recommends that agencies focus on current and potential harms using the tools already available in antitrust law. This balanced approach will protect consumers while ensuring beneficial mergers are not unintentionally stifled.

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The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.