FTC Chairwoman Ramirez Testifies Before Congress on Legislation That Would Alter the FTC’s Role in Adjudicating Merger Cases

Testifying on behalf of the Federal Trade Commission before the Senate Antitrust Subcommittee, FTC Chairwoman Edith Ramirez described the FTC's work to promote competition, and its concerns about proposed federal legislation would eliminate the FTC’s role in adjudicating some merger cases. Chairwoman Edith Ramirez described the proposed legislation -- known as the Standard Merger and Acquisition Reviews Through Equal Rules Act (SMARTER Act) -- as an unnecessary step that would remove a key tool the FTC has used successfully for many decades to promote competition and advance consumer welfare.

“The current system has worked well for over one hundred years, and all indications are that it will continue to do so to the benefit of competition and consumers,” the testimony states. Describing the FTC’s creation by Congress in 1914 as an independent, bipartisan agency, Chairwoman Ramirez noted its ability to consider and decide cases as an expert tribunal, subject to review by a federal court of appeals. The testimony concludes that the proposed SMARTER Act legislation could undermine the beneficial role the FTC plays in merger enforcement, and cites several reasons why the legislation is unnecessary, including because there is no evidence of a difference in outcomes between merger cases handled by the FTC and those handled by the Department of Justice.