The FTC: see how many block mergers and acquisitions blocked during Biden admin

of The Biden administration The Federal Trade Commission (FTC) has used its regulatory powers on a number of occasions in recent years to challenge proposed mergers and acquisitions.

The FTC’s Bureau of Competition is responsible for enforcing the antitrust laws and reviews proposed regulations. Mergers and Acquisitions The company believes that consumers could be negatively affected if a company were to acquire a competitor.

If the agencies determine that a merger or acquisition would harm competition in the market, they can investigate the ongoing transaction and potentially seek to force the companies to revise the terms to address their concerns or sue to stop the merger. The agencies also work with the Department of Justice to investigate and litigate proposed mergers.

“The FTC is committed to fully enforcing the nation’s antitrust laws, using the tools Congress has given the Commission to stop anticompetitive mergers that threaten free and fair competition,” an FTC spokesperson told FOX Business. “Mergers and acquisitions can raise competition concerns in a variety of ways, including by stifling innovation, raising prices, denying access to competitors’ products and services, or reducing quality — all of which can harm consumers, workers, and new businesses.”

Kroger-Albertsons Merger: Good or Bad for Shoppers?

of FTC Initiatives Regulators’ willingness to investigate and challenge proposed mergers has drawn criticism from the industry, with companies arguing that while mergers help small and medium-sized companies become more competitive in the global economy, regulatory challenges could undermine incentives for innovation and entrepreneurs to pursue acquisitions for their own companies.

Here are some notable mergers and acquisitions that the FTC has investigated or sued to block in recent years.

Albertsons and Kroger

Grocery store chain Kroger announced in October 2022 that it would acquire Albertsons for $24.6 billion. Biggest Supermarket Merger It was the largest number of stores in U.S. history. The companies then announced plans to sell more than 500 stores to C&S Wholesale to address regulatory concerns and give those stores a chance to stay in business.

Albertsons and Kroger plan to sell more than 500 stores to ensure the proposed merger goes through. (Kroger: Charles Bertram/Lexington Herald-Leader/Tribune News Service via Getty Images | Albertsons: Shelby Tauber/Bloomberg via Getty Images/Getty Images)

The FTC filed suit in February 2024 to block the proposed merger, arguing it would eliminate competition between the two major supermarket chains, leading to higher prices for consumers and lower demand for workers.

The dispute is currently pending in federal court.

Kroger and Albertsons to sell 166 more stores in $25 billion merger

The FTC is appealing the ruling after losing its attempt to block Microsoft’s acquisition of Activision Blizzard. (Pablo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)

Microsoft and Activision Blizzard

Technology giant Microsoft announced in January 2022 that it had signed a deal to acquire Activision Blizzard, the video game studio behind the Call of Duty series, for $68.7 billion, making it the largest merger proposal in Microsoft’s history. Video Game Industry.

The FTC filed suit in December 2022 to block the merger, arguing that Microsoft would stifle competition from rival video game platforms. Microsoft Xbox By denying access to the popular video game series.

In July 2023, a federal judge in the Northern District of California denied the FTC’s request to block the merger and allowed it to proceed.

The transaction is expected to close in October 2023, but the FTC Appealed The case was filed in December with the 9th Circuit Court of Appeals and remains pending.

FTC files lawsuit to block Mattress Firm’s $4 billion merger

The FTC filed suit to block the Mattress Firm-Tempur Sealy merger. (Photo by Don and Melinda Crawford/UCG/Universal Images Group via Getty Images/Getty Images)

Mattress Firm and Tempur Sealy

Mattress manufacturer Tempur Sealy The deal was announced It will acquire retailer Mattress Firm in May 2023 for $4 billion.

In June 2024, the FTC announced it was filing a lawsuit over concerns that the company was harming competition from rivals Serta Simmons Bedding and Purple Innovations by cutting off market access, raising prices and reducing product quality for consumers.

“We continue to believe that our transaction with Tempur Sealy is beneficial for our consumers, our employees and the bedding and furniture industry as a whole,” Mattress Firm told Fox Business last month, adding that it would continue to offer both Tempur Sealy and non-Tempur Sealy branded products.

Tempur Sealy said in an investor call this week that it believes the merger is “compliant with the law” and expects “the legal proceedings to be successfully concluded in the coming months” with the transaction closing in late 2024 or early 2025.

The FTC may try to block another merger

Versace is one of the luxury brands owned by Tapestry. (Photo: Scott Olson/Getty Images/Getty Images)

Tapestry and Capri

Tapestry, the parent company of Coach and Kate Spade, said it would buy Capri, which owns the Michael Kors brand, in August 2023 for $8.5 billion. Luxury Brands Under one company.

In April 2024, the FTC filed a lawsuit seeking to block the acquisition, citing areas in which the two companies compete, including price, discounts, promotions, design, marketing and advertising, and alleging that the merger would “deprive millions of American consumers of the benefits of direct competition between Tapestry and Capri.”

The case is due to return to court in September this year.

Amazon cancels iRobot acquisition due to regulatory issues

Amazon and iRobot abandoned their proposed merger amid regulatory scrutiny. (Alex Tye/SOPA Images/LightRocket via Getty Images / Getty Images)

Amazon and iRobot

Tech giant Amazon The company announced in August 2022 that it would acquire robotics company iRobot for $1.4 billion, but faced scrutiny from regulators in the U.S. and Europe.

The FTC investigated the proposed merger due to concerns about Amazon’s growing market power, and while it did not file a lawsuit, Amazon and iRobot announced they would undo their merger in January 2024 after facing regulatory scrutiny.

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“Mergers and acquisitions like this one help companies like iRobot better compete in the global marketplace, especially in rapidly changing technology areas like robotics, against companies and countries that are not subject to the same regulatory requirements,” Amazon general counsel David Zapolsky said in announcing the merger dissolution.

“Unfair and disproportionate regulatory hurdles discourage entrepreneurs who should see acquisitions as a path to success, and they harm both consumers and competition – the very things regulators are trying to protect,” Zapolsky added.