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
American Investment Council
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
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)
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.