FTC Competition Director Announces Guidelines for Negotiating Merger Remedies

Federal Trade Commission Competition Director Joe Simons today announced the issuance of the Bureau's new "Statement of the Federal Trade Commission's Bureau of Competition on Negotiating Merger Remedies." This Statement is the latest in a continuing effort of the Commission to increase the transparency of its processes - this one relating specifically to negotiation of merger remedies.

The Statement, which is available on the FTC's Web site as a link to this press release, addresses issues raised in workshops held across the country over the last year focusing on these issues. The Bureau hopes the Statement will streamline the merger settlement negotiation process by explaining the basis for decisions that have been made in recent cases and that are likely to drive future decisions as well.

In general, the Statement indicates that the staff will continue to listen to all alternatives the parties wish to present when negotiating merger settlements. The Statement, however, points out that the merging parties can exercise a considerable amount of influence over the time and analytical detail needed to reach agreement. The divestiture of an ongoing, stand-alone business, for example, often can be done after the close of the primary transaction, and the negotiation of such an order can be done with substantially less time and effort than more complicated proposals.

Today's announcement is part of a continuing dialogue on the merger settlement process. The Bureau will continue to review its position and will consider the particular facts of a case when negotiating any settlement.