FTC shifts to federal court strategy for blocking mergers
FTC shifts to federal court strategy for blocking mergers
The Federal Trade Commission (FTC) has recently shifted its strategy for blocking corporate mergers, moving away from its traditional internal administrative process toward direct litigation in federal courts.
Historically, the agency relied on an in-house system with Administrative Law Judges (ALJs) to challenge anticompetitive behavior.
However, this approach faced significant constitutional scrutiny, notably culminating in the 2023 Supreme Court decision in Axon Enterprise, Inc. v.
FTC, which allowed companies to bypass these internal proceedings to challenge the FTC's structure in federal court.
Under the leadership of Lina Khan, the agency adopted a litigation-first strategy, aiming for outright blocks of mergers rather than negotiating settlements.
This evolution highlights a broader struggle: balancing the agency's goal of strong antitrust enforcement with the practical necessity of meeting strict judicial standards of evidence and statutory authority.
