The M&A Legal Landscape

The Sherman Act: Enacted in 1890, the Sherman Act is a fundamental antitrust law in the United States that prohibits monopolistic practices and anti-competitive agreements. It targets all contracts, combinations and conspiracies that restrain interstate and international trade, aiming to ensure a competitive market environment.

Clayton Act: This 1914 regulation enhances the Sherman Act by specifically addressing behaviors like price discrimination, exclusive deals, and mergers and acquisitions that might substantially lessen competition. It aims to prevent such anti-competitive practices before they create monopolies, thereby promoting fair business competition.

Federal Trade Commission (FTC) Act: Passed in 1914, this established the FTC to enforce antitrust laws and protect consumers by banning unfair methods of competition and deceptive practices in commerce. It serves as a critical tool in promoting fair business practices and consumer protection in the United States.

The Hart-Scott-Rodino Act: Since 1976, this act requires companies to file pre-merger notifications for large mergers and acquisitions, providing the FTC and Department of Justice time to review for potential anti-competitive impacts before completion. This allows enforcement agencies to address antitrust issues proactively, maintaining market competition and consumer interests.