The Federal Trade Commission has
acknowledged it's probably not a good
idea to improvise when it comes to challenging mergers. Late Thursday
the FTC
proposed new rules that would allow it to speed its in-house
trials on merger challenges and other antitrust proceedings. If
approved, the new rules would codify recent ad hoc efforts to expedite
in-house merger trials.
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Under the new rules, the agency aims to set tighter time limits on the adjudicative process, make the discovery and motion practice more efficient, expedite and streamline evidentiary hearings, and change the process for issuing initial decisions by administrative law judges employed at the agency and subsequent commission review.
The FTC has long been criticized for the pace of its in-house litigation, known as a "Part 3 proceeding." From the time the FTC announces a merger challenge, the process can take about two years to wind its way through the agency to a federal appeals court for resolution. The Part 3 process is a major difference between the FTC and Department of Justice, which have separate merger litigation procedures. DOJ cases typically can be resolved in half the time.
The FTC in recent months has experimented with ways to speed up its process. The agency in May launched an unusual two-pronged attack of Inova Health System's proposed $200 million purchase of Prince William Hospital in Manassas, Va. The threat of trial caused the deal to be dropped and was the first time in 15 years that antitrust regulators stopped a hospital merger in its tracks. In August the FTC announced it would also try to expedite its in-house trial against Whole Foods Market Inc.'s $700 million purchase of Wild Oats Markets Inc. -
Bill McConnell See FTC announcement
See FTC proposal
See July 23 story from TheDeal.com on expediting FTC trials
