What is the Hart-Scott-Rodino Act?
The Hart-Scott-Rodino Act (HSR) is a federal antitrust law that was enacted in 1976 to promote fair competition and prevent large companies from getting too powerful. This law requires businesses to inform the Federal Trade Commission (FTC) and the Department of Justice (DOJ) of certain large proposed mergers or acquisitions before they take place. The Act also requires submitting “pre-merger notification” forms, which provide the FTC and DOJ with information about the proposed transaction. HSR is intended to help the FTC and DOJ monitor large mergers and understand their potential competitive effects. With the information obtained from HSR filings, the federal government can decide whether to challenge a merger that might limit competition or lead to higher prices. The HSR Act applies to transactions of more than $94 million in Washington and more than $189 million in the US as a whole. It requires both companies to provide information about how their merger would affect the market and the public. HSR filings also require the companies to pay a filing fee of up to $280,000 depending on the size of the transaction. The fee helps pay for the work of the FTC and DOJ in reviewing the application and investigating the merger. In Washington and throughout the US, the Hart-Scott-Rodino Act serves as an important tool for ensuring fair competition in the marketplace. By providing the FTC and DOJ with information and resources to monitor large proposed mergers, the HSR helps keep competition alive and markets functioning efficiently.
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