The effective date of the Formal Interpretation under the Hart-Scott-Rodino Act (HSR) rules setting forth the conditions under which the creation, or acquisition of an interest in, a Limited Liability Company will be reportable under the HSR Act has been extended until February 1, 1999, according to a Federal Register Notice published today, in order to review and analyze the comments received.
On October 13, 1998,the Premerger Notification Office (PNO) of the Federal Trade Commission, with the concurrence of the Antitrust Division of the Department of Justice, issued a Formal Interpretation under the Hart-Scott-Rodino Act (HSR) and rules stating that the creation of an LLC which unites two or more independently-owned businesses under common control may be subject to the reporting requirements of the HSR Act, if the size thresholds of the HSR Act are met. The Federal Register Notice announcing the Formal Interpretation asked for public comment on the burden of compliance with the Formal Interpretation and whether the antitrust agencies treatment of partnerships, which remains unchanged, should be altered to be the same as its treatment of LLCs. The Formal Interpretation was to become effective on December 14, 1998, after a thirty day comment period.
Copies of the Federal Register Notice are available from the FTC’s web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-FTC-HELP (202-382-4357); TDD for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.
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