|For Release: April
FTC Competition Director
Announces Guidelines for Negotiating Merger Remedies
Federal Trade Commission Competition Director Joe Simons
today announced the issuance of the Bureau's new "Statement of the Federal Trade
Commission's Bureau of Competition on Negotiating Merger Remedies." This Statement is
the latest in a continuing effort of the Commission to increase the transparency of its
processes - this one relating specifically to negotiation of merger remedies.
The Statement, which is available on the FTC's Web site as
a link to this press release, addresses issues raised in workshops held across the country
over the last year focusing on these issues. The Bureau hopes the Statement will
streamline the merger settlement negotiation process by explaining the basis for decisions
that have been made in recent cases and that are likely to drive future decisions as well.
In general, the Statement indicates that the staff will
continue to listen to all alternatives the parties wish to present when negotiating merger
settlements. The Statement, however, points out that the merging parties can exercise a
considerable amount of influence over the time and analytical detail needed to reach
agreement. The divestiture of an ongoing, stand-alone business, for example, often can be
done after the close of the primary transaction, and the negotiation of such an order can
be done with substantially less time and effort than more complicated proposals.
Today's announcement is part of a continuing dialogue on
the merger settlement process. The Bureau will continue to review its position and will
consider the particular facts of a case when negotiating any settlement.