鶹ý attorneys Kate Gehl, Ellen Matheson, and Anna Busse authored the CPI Antitrust Chronicle article, “Supply Chain Risks and Vertical Merger Enforcement,” exploring the evolving stance of the Federal Trade Commission and U.S. Department of Justice towards vertical mergers.
The authors assess new merger guidelines that refine theories of vertical harm, changes to reporting rules under the Hart-Scott-Rodino Antitrust Improvements Act, judicial interpretations, and potential developments that may impact vertical mergers in the future.
“There is additional reason to think that the agencies under the second Trump administration may regard at least some vertical mergers with heightened scrutiny, such as those in technology, health care, and other rapidly evolving sectors,” the authors conclude. “Consider, for example, the implementation of sweeping tariffs and their effect on the international supply chain. As tariffs raise input prices, businesses that rely on foreign suppliers may face higher costs or limited access to key products, which can slow production and lead to price hikes for consumers.”
“To offset such supply chain problems, the Trump administration may decide to challenge vertical mergers in those industries facing tariff-induced disruptions,” they added. “The tools for it to do so are all there.”
