FTC Revises Hart-Scott-Rodino Thresholds for 2019
Kelley Drye Client Advisory
On February 15, 2019, the Federal Trade Commission announced revised notification thresholds pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The HSR Act requires parties to file notification with the FTC and the United States Department of Justice prior to consummating a merger or acquisition that meets the HSR Act’s jurisdictional tests.
The FTC is required to revise the HSR thresholds annually based on changes in the gross national product. The following will go into effect sometime by the end of March, 30 days after the date of their publication in the Federal Register.
Original Threshold | 2018 Threshold | 2019 Threshold |
$10 million | $16.9 million | $18 million |
$50 million | $84.4 million | $90 million |
$100 million | $168.8 million | $180 million |
$200 million | $337.6 million | $359.9 million |
$500 million | $843.9 million | $899.8 million |
$1 billion | $1.6878 billion | $1.799.5 billion |
The FTC also revises the monetary thresholds that trigger prohibited interlocking directorates under Section 8. The 2017 thresholds are $36,564,000 for Section 8(a)(l) and $3, 656,400 for Section 8(a)(2)(A).
Mergers that do not meet these thresholds may nonetheless substantially lessen competition. Parties to these transactions may close them, however, without filing notification. The agencies may investigate them nonetheless.
The FTC also raised the penalty for violating the HSR Act from $41,484 to $42,530 per day.
Our client alerts are for general information purposes only and should not be regarded as legal advice. If you would like additional information, please contact:
David H. Evans+1 (202) 342-8479