Merger Filing Fee Modernization Act of 2021 explained

Merger Filing Fee Modernization Act of 2021
Fullname:A bill to promote antitrust enforcement and protect competition through adjusting premerger filing fees, and increasing antitrust enforcement resources.
Introduced In The:117th
Number Of Co-Sponsors:2 (Senate)
Introducedin:Senate
Leghisturl:https://www.congress.gov/bill/117th-congress/senate-bill/228/actions
Introducedbill:S. 228
Introduceddate:February 4, 2021
Introducedby:Amy Klobuchar (D–MN)
Committees:United States Senate Committee on the Judiciary

The Merger Filing Fee Modernization Act of 2021 (MFFMA) is a proposed antitrust bill in the United States Congress. The legislation was introduced in the Senate by Amy Klobuchar (D-MN) and Chuck Grassley (R-IA) as S. 228 on February 4, 2021.[1] [2] Companion legislation was introduced in the House of Representatives by Joe Neguse (D-CO) and Victoria Spartz (R-IN) as H.R. 3843 on June 11, 2021.[3] [4]

The legislation increases filing fees for the largest mergers and acquisitions. In doing so, the legislation intends to increase the amount of available resources for the Federal Trade Commission (FTC) and Department of Justice's (DOJ) antitrust probes.[5] The original Senate and House versions of the bill have passed the Senate Judiciary Committee and House Judiciary Committee, respectively.

On September 29, 2022, the House voted to pass a legislative package led by the MFFMA in a 242—184 vote. The package also includes the State Antitrust Enforcement Venue Act and the Foreign Merger Subsidy Disclosure Act.[6] A version of the legislation was included in the Consolidated Appropriations Act, 2023.[7]

History

The legislation proposes the first increase to pre-merger filing fees in the United States since 2001.[8] Members of the FTC have argued that currently filing fees and agency funding have not kept pace with inflation and increase in merger activity.[9]

Provisions

Under the provisions of the original MFFMA, merger fees for:

At the same time, the legislation reduces filing fees for mergers under $500 million from $125,000 to $100,000.

Voting history

On May 13, 2021, the Senate Judiciary Committee voted to advance the legislation to a full vote in the Senate by voice vote.[10] On June 23, the House Judiciary Committee in favor of advancing H.R. 3843 to the House floor by a 29—12 margin.[11]

See also

Notes and References

  1. Web site: 2021-05-13 . S.228 - 117th Congress (2021-2022): Merger Filing Fee Modernization Act of 2021 . 2022-03-03 . www.congress.gov.
  2. Web site: Klobuchar, Grassley Bill to Provide Antitrust Enforcers Additional Resources Passes Senate . 2022-03-03 . U.S. Senator Amy Klobuchar . en.
  3. Web site: 2021-06-24 . H.R.3843 - 117th Congress (2021-2022): Merger Filing Fee Modernization Act of 2021 . 2022-03-03 . www.congress.gov.
  4. News: Zakrzewski . Cat . June 11, 2021 . Bipartisan proposals in House would mean major changes for the way tech giants operate . en-US . Washington Post . 2022-03-03 . 0190-8286.
  5. Web site: Cole . Christopher . May 13, 2021 . Senate Panel Clears Bill Hiking Megamerger Filing Fees - Law360 . 2022-03-03 . www.law360.com . en . "The Senate Judiciary Committee on Thursday easily advanced Sen. Amy Klobuchar's bill to raise government filing fees on the largest mergers and acquisitions in order to better fund enforcement agencies' antitrust probes.".
  6. Web site: Feiner . Lauren . House passes antitrust bill that hikes M&A fees as larger efforts targeting tech have stalled . 2022-12-07 . CNBC . en.
  7. Web site: Gold . Ashley . 2022-12-20 . Tech legislation's 2022 scorecard . 2022-12-21 . Axios . en.
  8. Web site: Senate Panel Clears Bill Hiking Megamerger Filing Fees - Law360 . 2022-03-03 . www.law360.com . en.
  9. Web site: Koenig . Bryan . January 24, 2022 . FTC Still Needs More Money For Merger Reviews, Dems Say - Law360 . 2022-03-03 . www.law360.com . en . "Democrats on the Federal Trade Commission used the annual increase in merger reporting thresholds Monday as an opportunity to renew their call for higher filing fees, more Congressional appropriations and other, more fundamental changes to the U.S. transaction review system. Accompanying the 4-0 vote to increase the dollar-value threshold requiring transaction notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 from $92 million to $101 million, Commissioner Rebecca Kelly Slaughter was joined by Chair Lina M. Khan in a statement arguing that filing fees and agency funding haven't kept pace with inflation or a "historic merger wave," straining the resources of the commission and the U.S. Department of Justice Antitrust Division.".
  10. News: 2021-05-13 . Bipartisan U.S. bill to raise merger fees for big deals passes Senate panel . en . Reuters . 2022-03-03.
  11. News: 2021-06-23 . U.S. House panel votes to increase fees for biggest mergers, budgets for antitrust enforcers . en . Reuters . 2022-03-03.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Merger Filing Fee Modernization Act of 2021".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.