Opinion ID: 2806462
Heading Depth: 2
Heading Rank: 1

Heading: The HSR Act

Text: As noted above, the Act fosters Government identification of mergers and acquisitions likely to violate federal antitrust laws before the proposed transactions are consummated. Pharm. Research, 44 F. Supp. 3d at 100 (citing S. REP. NO. 94-803, at 1 (1976); H.R. REP. NO. 94-1373, at 5 (1976); Mattox v. FTC, 752 F.2d 116, 119–20 (5th Cir. 1985)). The statute states in part that, [e]xcept as exempted pursuant to subsection (c) of this section, no person shall acquire, directly or indirectly, any voting securities or assets of any other person, unless both persons (or in the case of a tender offer, the acquiring person) file notification pursuant to rules under subsection (d)(1) of this section and the waiting period described in subsection (b)(1) of this section has expired .... 15 U.S.C. § 18a(a). A merger or acquisition triggers the Act’s requirements if one of the parties “is engaged in commerce or in any activity affecting commerce” and one of the threshold financial values defined in the Act is met. Id. § 18a(a)(1), (2). The HSR Act does not define “asset[],” “acquire,” or “person.” It does, however, list a number of exempt transactions, id. § 18a(c), none of which are relevant here. 6 The Commission’s delegated authority under the Act is extensive. The Act provides in relevant part that: The Federal Trade Commission, with the concurrence of the Assistant Attorney General and by rule in accordance with section 553 of Title 5, consistent with the purposes of this section— (1) shall require that the notification required under subsection (a) of this section be in such form and contain such documentary material and information relevant to a proposed acquisition as is necessary and appropriate to enable the Federal Trade Commission and the Assistant Attorney General to determine whether such acquisition may, if consummated, violate the antitrust laws; and (2) may— (A) define the terms used in this section; (B) exempt, from the requirements of this section, classes of persons, acquisitions, transfers, or transactions which are not likely to violate the antitrust laws; and (C) prescribe such other rules as may be necessary and appropriate to carry out the purposes of this section. Id. § 18a(d). The Act also provides enforcement mechanisms for the FTC and the Assistant Attorney General. The FTC or the Assistant Attorney General may apply to the United States 7 district courts to “order compliance” or “grant such other equitable relief as the court in its discretion determines necessary or appropriate.” Id. § 18a(g)(2)(A), (C). It also provides for civil penalties of up to $10,000 for each day against “[a]ny person, or any officer, director, or partner thereof, who fails to comply with any provision of this section.” Id. § 18a(g)(1).