What is the Hart-Scott-Rodino Act?

The Hart-Scott-Rodino Act is a federal antitrust law that was enacted by the United States Congress in 1976 and amended in 2004. It is enforced by the Federal Trade Commission (FTC) and the Department of Justice to review certain mergers and acquisitions that may affect the competition of markets in the District of Columbia and throughout the U.S. The purpose of this law is to ensure that large mergers and acquisitions do not lead to a decrease in competition or prices, and also to give the government the opportunity to review and evaluate these types of business transactions. Under the Act, companies must file a notification of their merger or acquisition with the FTC and Department of Justice, and must submit pre- and post-acquisition information relating to the target company and the acquiring company. This allows antitrust enforcers to review the terms and conditions of the deal, as well as the companies’ business operations, in order to determine if the transaction would result in anti-competitive behavior in the market. If a potential anti-competitive outcome is found, the FTC and Department of Justice can challenge the transaction in court. The Act’s effectiveness in deterring anti-competitive behavior is credited for the rise of large business acquisitions since its 1976 implementation. It has significantly increased the antitrust enforcement of the FTC and Department of Justice in District of Columbia, and has become an integral part of both the business and legal communities in the District.

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What is the Hart-Scott-Rodino Act?

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