Regulatory Reform Subcommittee to Hold Hearing on the Smarter Act

Press Release

On Tuesday, June 16, 2015 at 2:00 p.m., the Subcommittee on Regulatory Reform, Commercial and Antitrust Law will hold a hearing on the re-introduced H.R. 2745, the Standard Merger and Acquisition Reviews Through Equal Rules Act (SMARTER Act).

Introduced by Regulatory Reform Subcommittee Vice-Chairman Blake Farenthold (R-Texas), the SMARTER Act harmonizes the standards and processes applied to the antitrust enforcement agencies for when they seek to block a proposed merger or acquisition. The House Judiciary Committee approved similar legislation last Congress.

Under existing law, the Federal Trade Commission and the Department of Justice can review proposed mergers and acquisitions. However, the two antitrust agencies face different standards in court and utilize different processes when reviewing these transactions. The way a reviewing agency is chosen can appear random, as if it is decided by the flip of a coin. The SMARTER Act eliminates the existing disparities between the two antitrust enforcement agencies and ensures that companies face the same standards and processes regardless of which federal agency reviews the merger.

The Subcommittee on Regulatory Reform, Commercial and Antitrust Law will hear testimony from an expert panel of witnesses to explore the merits of the SMARTER Act and whether any improvements can be made to the legislation.

The witnesses for Tuesday's hearing will be:

Ms. Deborah Garza, Esq., Partner, Covington & Burling LLP
Mr. David A. Clanton, Esq., Senior Counsel, Blake & McKenzie LLP
Mr. Abbott (Tad) B. Lipsky, Jr., Esq., Partner, Latham & Watkins LLP
Mr. Albert Foer, Esq., Senior Fellow, American Antitrust Institute
House Judiciary Committee Chairman Bob Goodlatte (R-Va.), Regulatory Reform Subcommittee Chairman Tom Marino (R-Pa.) and Subcommittee Vice-Chairman Blake Farenthold (R-Texas) issued the following statements on the bill's introduction and the upcoming hearing:

Chairman Goodlatte: "As we witness time and time again, mergers have the potential to significantly impact our nation's economy and the livelihood of millions of Americans. The stakes are high -- and the review process for proposed mergers should be fair, transparent and predictable. Under existing law, proposed mergers can appear to be assigned by the "flip of a coin' to either the Federal Trade Commission or the Justice Department, which utilize different standards and processes. The SMARTER Act harmonizes the merger review process to ensure that companies face the same standards and processes regardless of whether the Federal Trade Commission or the Justice Department reviews the merger."

Subcommittee Chairman Marino: "Our nation's antitrust laws exist to promote economic competition. However, two federal agencies, the Justice Department and the FTC, are assigned to enforce the same antitrust laws. That means the potential for duplication and uncertainty is greatly increased. A century of agency action and regulation has produced disparate frameworks and processes only compounding the confusion. The SMARTER Act harmonizes the enforcement mechanisms of antitrust law and it encourages greater certainty in our economy that businesses and consumers rely upon."

Subcommittee Vice-Chairman Farenthold: "When our businesses have to deal with the federal government, they should be treated as fairly, consistently, and transparently as possible. As it stands, federal review of the merger and acquisition process can often violate that principle by subjecting folks to different standards depending on which agency they have to deal with -- the DOJ or the FTC. The SMARTER Act restores fairness and predictability by putting in place the recommendations of the bi-partisan Antitrust Modernization Commission to ensure equal treatment regardless of the agency involved."

Source