Trump retains Biden's merger review guidelines, angering corporations

In a significant policy decision, the Trump administration announced on Tuesday that it would continue to use the strict guidelines for antitrust reviews of corporate mergers that were introduced during the Biden administration in 2023. This resolution was primarily articulated by Federal Trade Commission Chairman Andrew Ferguson and confirmed in a memo by Omeed Assefi, who is currently acting as the head of the Department of Justice's antitrust division. Corporations have largely criticized these Biden-era guidelines since their inception, as they mark a shift towards a more aggressive approach to merger oversight. The guidelines themselves include a framework of over a dozen criteria that both the FTC and DOJ consider when evaluating proposed mergers, with particular emphasis on preventing a significant increase in market concentration, sustaining substantial competition between involved firms, and avoiding vertical mergers that could stifle competition. Vice President JD Vance, a prominent figure within the populist wing of the Trump administration, has expressed strong support for these guidelines, indicating a surprising alliance with Biden’s FTC chair Lina Khan, who is known for her robust stance on antitrust enforcement. Vance's perspective suggests that the administration's focus aligns more with anti-corporate sentiments rather than traditional pro-business approaches. This decision represents a setback for Wall Street and corporations that were anticipating a relaxation of these rules, which they believe could facilitate a new wave of mergers and acquisitions. According to Ferguson's statements, maintaining the existing guidelines is essential for the credibility of the enforcement agencies. He noted that altering the guidelines frequently would lead to instability and could undermine the trust of businesses and the court system in the regulatory processes. Incorporating feedback on the current guidelines, Ferguson emphasized the importance of stability for both the enforcement agencies and the broader business community, especially given their limited resources. In summary, the Trump administration's decision to continue the Biden-era merger review guidelines reveals an unexpected dynamic within the current administration, representing both a victory for anti-corporate agendas and a blow to corporate interests hoping for a more lenient regulatory environment. The ongoing application of these guidelines underscores the administration’s commitment to an aggressive antitrust stance, potentially cementing a more hostile environment for future corporate consolidations and reshaping the landscape of business transactions in the foreseeable future.