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Joint Trade Associations Warn Congress of ‘Detrimental Impact’ of FTC, DOJ’s HSR Pre-Merger Proposal



WASHINGTON, D.C. – The American Securities Association (ASA) earlier this week joined with 30 trade associations, including the National Association of Manufacturers, American Investment Council, U.S. Chamber of Commerce, and Managed Funds Association, in sending a letter to the U.S. House and U.S. Senate Judiciary Committees cautioning Congress of the impact of the Federal Trade Commission’s (FTC) and the Department of Justice’s (DOJ) proposal to amend Hart-Scott-Rodino (HSR) pre-merger notification rules.

“The FTC and DOJ proposal needlessly inhibits business transactions that are not anti-competitive by imposing unnecessary bureaucratic hurdles that Congress did not intend or authorize,” said ASA President & CEO Chris Iacovella. “If enacted, the new policy will do nothing but result in a government-mandated transfer of wealth from American businesses and who risk capital to a professional class lawyers and consultants who do not.”

The letter noted the detrimental impact the Agencies’ Proposal would have on small and middle-market companies, as well as U.S. antitrust policy.

“The FTC’s and DOJ’s new regime would subject thousands of businesses each year to costly and unnecessary new burdens. Smaller and middle-market businesses will be hit the hardest. Economists project the new regime will equate to over $2 billion in annual costs on these businesses with no identifiable benefit. The full negative impact of the proposed regulations is detailed in the hundreds of comment letters submitted in response to the Agencies’ proposed rulemaking by small businesses, startups, manufacturers, retailers, consumers, and others from a variety of sectors across the economy. They warn that the regime will stifle U.S. innovation and chill transactions that could benefit consumers, workers, and the U.S. economy. Furthermore, they warn that the costs and delays associated with the proposed requirements will be detrimental to pro-competitive, pro-consumer transactions that are vital to small business growth across the country—disproportionately harming these businesses with less resources,” the organizations wrote in the letter.

The letter, signed by the below organizations, can be found here.


National Association of Manufacturers

U.S. Chamber of Commerce

Center for American Entrepreneurship

International Franchise Association

Business Roundtable

American Investment Council

Engine

National Retail Federation

National Venture Capital Association

Biotechnology Innovation Organization

Federation of American Hospitals

Pharmaceutical Research and Manufacturers of America

Consumer Technology Association

USTelecom – The Broadband Association

Global Business Alliance

Managed Funds Association

Motion Picture Association

National Council of Farmer Cooperatives

Consumer Brands Association

TechNet

Software & Information Industry Association (SIIA)

National Waste & Recycling Association

Metals Service Center Institute

Information Technology Industry Council

ACT | The App Association

American Securities Association

Council for Investor Rights and Corporate Accountability

Professional Services Council

Computer & Communications Industry Association

Technology Councils of North America (TECNA)

CTIA



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About the American Securities Association


American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.

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