What is the Hart-Scott-Rodino Act?

The Hart-Scott-Rodino Act, commonly called simply “HSR,” is a federal antitrust law that applies to businesses in the United States, including the state of Colorado. The law requires companies that are planning a large acquisition or merger to first inform the Federal Trade Commission and the Department of Justice. This is so that the government can ensure that the proposed transaction is not anti-competitive and does not violate antitrust laws. The intent of the Hart-Scott-Rodino Act is to prevent companies from gaining too much market power, as consolidation can lead to reduced competition and higher prices for consumers. To be subject to the law, the acquiring company and the target must meet certain size thresholds, which means that companies that are small enough are exempted from the HSR filing requirement. Furthermore, the HSR process allows the government to review and investigate large transactions to determine whether they are anti-competitive or potentially illegal. The Hart-Scott-Rodino Act also requires that each party involved in the merger or acquisition submit a fee, which helps to cover the costs of the FTC and DOJ’s investigation. If the transaction is found to be illegal and violates antitrust laws, the FTC and DOJ can seek to enjoin (stop) the transaction and impose fines and other penalties. The Hart-Scott-Rodino Act is an important federal law that helps to ensure that businesses in Colorado and across the United States do not acquire too much market power and competition is not unreasonably restricted.

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What is the Hart-Scott-Rodino Act?

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