FTC and Department of Justice are asking the public for information on ‘serial seizures’, including cybersecurity

The Federal Trade Commission and the Antitrust Division of the Department of Justice (DOJ) jointly launched a public investigation to identify serial takeovers and roll-up strategies across the economy that led to consolidation that harmed competition.

In the joint information request, the agencies are asking the public for information on serial acquisitions and roll-up strategies, which are corporate consolidation strategies that occur when a company becomes larger – and potentially dominant – by purchasing several smaller companies at the same time. or related business sectors or industries.

Corporate entities, including private equity firms, engage in these types of acquisitions in many markets and industries. Often, companies are not required to report these transactions to federal antitrust agencies, allowing companies to accumulate significant control over key products, services or labor markets without government control. These types of transactions can harm competition to the detriment of consumers, workers and innovation across an industry or business sector.

“Companies can use serial takeovers to expand markets, consolidate power and undermine fair competition, all while raising prices and compromising quality,” said Chairwoman Lina M. Khan. “As the FTC examines these stealth consolidation plans, we encourage the public to submit information about where serial takeovers have occurred and their effects.”

“When companies use serial takeovers and other roll-up strategies to consolidate industries while avoiding antitrust scrutiny, they deprive Americans of the benefits of competition,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Public insight into where these takeovers occurred and their impact on competition will help us identify and prosecute harmful behavior.”

The RFI is seeking public input on serial takeovers in all sectors and industries of the U.S. economy, which includes, but is not limited to, housing, defense, cybersecurity, distribution companies, agriculture, construction, aftermarket/repair, and professional services markets. Comments submitted in response to this request for proposals will inform the agency’s enforcement priorities and future actions.

The FTC and the Department of Justice are seeking assistance from a wide range of stakeholders, including consumers, workers, businesses, advocacy organizations, professional and industry associations, local, state and federal elected officials, scientists and others.

This RFP complements a parallel government study that seeks to understand how certain health care transactions by private equity firms and other corporations may increase consolidation and generate profits while threatening patient health, worker safety, quality of care and affordability. the price of health care for patients and taxpayers.

The Department of Justice and FTC’s latest request for proposals builds on the agencies’ efforts to ensure that federal antitrust enforcement tools keep pace with changes in the way companies do business. The agencies have proposed amending pre-merger notification forms to require companies to disclose more information about each party’s prior acquisition history. Additionally, the FTC and Department of Justice’s 2023 Merger Guidelines recognize that serial acquisitions could potentially violate antitrust laws. The FTC’s Section 5 policy statement also explains that serial mergers, acquisitions, or joint ventures may be anticompetitive.

The public will have 60 days to submit comments on Regulacje.gov, no later than July 22, 2024. Once submitted, comments will be posted on Regulacje.gov.