US Senate Passes Bill To Raise Fees On Mega-Mergers

On Tuesday, June 8, the US Senate passed a bill that would increase fees that companies planning the biggest mergers pay to government antitrust agencies and give those agencies bigger budgets, reported Reuters.

Co-sponsored by Democrat Amy Klobuchar and Chuck Grassley the bill would lower the fee for smaller mergers under US$161.5 million to US$30,000 from US$45,000. But for deals worth US$5 billion or more, the fee would rise to US$2.25 million from US$280,000.

“Now that my bill with Senator Grassley passed the Senate, the Federal Trade Commission and Department of Justice’s Antitrust Division are one step closer to having additional resources to conduct rigorous reviews of large mergers,” Klobuchar said in a statement.

The antitrust measure was included in a Senate package aimed at boosting the country’s ability to compete with Chinese technology. The bill must pass the House of Representatives to be sent to the White House for President Joe Biden to sign into law.

The Federal Trade Commission (FTC) and the Justice Department’s Antitrust Division assess mergers to ensure that they comply with antitrust law.

The measure would increase authorizations to each, giving the FTC a budget of US$418 million, while the Antitrust Division would receive US$252 million.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.