FTC Announces Revised Thresholds and Filing Fees for Mergers and Acquisitions in 2024

Federal Trade Commission (FTC)

WASHINGTON, D.C. — The Federal Trade Commission (FTC) recently announced revised jurisdictional thresholds and an updated filing fee schedule under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.

The HSR Act mandates the FTC to revise jurisdictional thresholds annually, reflecting changes in the gross national product. It also requires the commission to adjust the HSR filing fee schedule each year, based on fluctuations in both the gross national product and the consumer price index, per Division GG of the 2023 Consolidated Appropriations Act.

For 2024, the reporting threshold for proposed mergers and acquisitions under Section 7A of the Clayton Act will increase from $111.4 million to $119.5 million. This shift means that any planned merger or acquisition valued over $119.5 million must be reported to the FTC.

The new thresholds and filing fee schedule will apply to all transactions closing 30 days after the notice’s publication in the Federal Register. The unanimous vote approving the Federal Register Annual Notice of Revision was 3-0.

The FTC’s decision to raise the reporting threshold could have far-reaching implications for businesses planning mergers and acquisitions. The move effectively reduces the number of transactions that would need to be reported to the FTC, potentially speeding up the process for smaller-scale mergers and acquisitions.

However, the change also raises questions about oversight and market concentration. While larger corporations may benefit from less regulatory red tape, consumer advocates might worry about the potential for unchecked consolidation in certain industries.

Furthermore, this revision could impact the FTC’s workload. Fewer reported transactions could mean fewer antitrust investigations, allowing the agency to focus its resources on scrutinizing larger, potentially more impactful mergers and acquisitions.

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In the broader economic context, this adjustment reflects the ongoing changes in our nation’s gross national product and consumer price index, highlighting the FTC’s commitment to adapt its regulations accordingly.

As the revised thresholds and filing fees come into effect, businesses, economists, and consumer advocates alike will be watching closely to assess the impact of these changes on the American market.

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