Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Federal Trade Commission relating to "Premerger Notification; Reporting and Waiting Period Requirements".
- Bill Number
- H.J.Res. 39
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-02-11: Referred to the House Committee on the Judiciary.
- Last Updated
- 2025-05-20T08:05:36Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 39) aims to block a new rule issued by the Federal Trade Commission (FTC) that updates requirements for companies to notify the government before merging. It uses the Congressional Review Act (CRA), a law allowing Congress to overturn certain federal agency rules, to ensure the rule does not take effect.
Key Provisions
- Disapproval of the Rule: The resolution explicitly disapproves the FTC's rule titled "Premerger Notification; Reporting and Waiting Period Requirements," published in the Federal Register on November 12, 2024 (89 Fed. Reg. 89216).
- No Force or Effect: If passed, the rule would be nullified, meaning companies would continue following the previous version of the premerger notification rules under the Hart-Scott-Rodino (HSR) Act.
- Introduction Details: Introduced in the House of Representatives on February 11, 2025, by Rep. Fitzgerald, along with Reps. Gooden and Cline, and referred to the House Committee on the Judiciary.
Significant Changes to Existing Law
- This resolution does not amend existing laws but invokes the CRA to reverse an agency rulemaking. The targeted FTC rule would have expanded reporting obligations for mergers (e.g., requiring more details on deals above certain thresholds and extending waiting periods for review). By disapproving it, the resolution prevents these expansions, maintaining the status quo under the HSR Act, which requires large companies to report proposed mergers to the FTC and Department of Justice (DOJ) for antitrust review.
Potential Impacts
- On Government Agencies: The FTC and DOJ would be unable to implement the new rule, potentially limiting their ability to scrutinize mergers more thoroughly and slowing antitrust enforcement efforts.
- On Citizens and Businesses: Companies involved in large mergers would face fewer paperwork burdens and shorter review delays, which could speed up business deals and reduce costs. Consumers might see indirect effects if easier mergers lead to more market consolidation, potentially affecting competition and prices.
- On International Relations: Minimal direct impact, though it could influence how U.S. merger rules align with global antitrust standards, affecting cross-border deals.
Main Stakeholders Affected
- Businesses and Corporations: Especially those in industries with frequent mergers (e.g., tech, healthcare, finance), who would benefit from avoiding increased reporting requirements.
- Federal Agencies: Primarily the FTC and DOJ's Antitrust Division, which enforce merger reviews.
- Congress: Members seeking to check executive branch rulemaking, particularly those favoring less regulation on business.
- Consumers and Advocacy Groups: Antitrust watchdogs and consumer protection organizations may oppose the disapproval, as it could weaken merger oversight.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on the CRA, which gives Congress a fast-track process (simple majority vote, no amendments) to veto agency rules within 60 legislative days of submission. If enacted, it sets a precedent for congressional override of FTC antitrust updates.
- Constitutional: Reinforces the separation of powers by allowing the legislative branch to limit executive agency actions, though critics argue it undermines expert regulatory processes.
- Political: Highlights partisan divides on regulation; introduced by Republicans, it reflects efforts to reduce perceived overreach by the FTC under Democratic leadership, potentially influencing future business-friendly policies. As an introduced bill, its passage depends on congressional control and presidential approval (or veto override).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fitzgerald, Scott [R-WI-5]
Cosponsors (3)
Rep. Gooden, Lance [R-TX-5], Rep. Cline, Ben [R-VA-6], Rep. Schmidt, Derek [R-KS-2]
Recent Actions
- 2025-02-11: Referred to the House Committee on the Judiciary.
- 2025-02-11: Introduced in House
- 2025-02-11: Introduced in House
Bill Versions
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Federal Trade Commission relating to "Premerger Notification; Reporting and Waiting Period Requirements". — issued 2025-02-11 — PDF (2 pages)