Merger Rules

By Joy Jacob · Updated 2026-07-13 · 3 min read

The Federal Trade Commission (FTC) recently announced that it has secured $12 million in penalties from Edwards Lifesciences and Genesis for violating the Pre-Merger Reporting Act, also known as the Hart-Scott-Rodino Act (HSR). This act requires companies to notify the federal government before completing certain large mergers and acquisitions. You can read more about the announcement on the FTC's website.

What is the Hart-Scott-Rodino Act?

The Hart-Scott-Rodino Act is a federal law that requires companies to notify the government before completing certain large mergers and acquisitions. The law applies to transactions that meet certain size and value thresholds, and it requires companies to submit a notification form to the government and wait a certain period of time before completing the transaction. This waiting period gives the government time to review the transaction and determine whether it may harm competition. For example, if a company wants to acquire a competitor, it may need to notify the government and wait for approval before completing the deal.

The HSR Act is designed to prevent companies from completing mergers and acquisitions that may harm competition. By requiring companies to notify the government before completing a transaction, the law gives the government the opportunity to review the deal and determine whether it may have negative effects on competition. If the government determines that a transaction may harm competition, it can take action to block the deal or require the companies to make changes to the transaction.

What this means for you

The HSR Act has important implications for consumers and businesses. Here are a few key points to consider:

• Competition is important for consumers: The HSR Act helps to ensure that companies do not complete mergers and acquisitions that may harm competition. This is important for consumers because competition can lead to lower prices, better products, and more innovation. When companies compete with each other, they are incentivized to offer better products and services at lower prices, which can benefit consumers.
• Companies must comply with the law: The HSR Act requires companies to notify the government before completing certain large mergers and acquisitions. Companies that fail to comply with the law can face significant penalties, as seen in the recent FTC announcement. This means that companies must carefully review the HSR Act and ensure that they are complying with all of its requirements.
• The government is actively enforcing the law: The FTC's recent announcement demonstrates that the government is actively enforcing the HSR Act. This means that companies that attempt to avoid complying with the law can face significant consequences. The government is committed to ensuring that companies comply with the HSR Act and that mergers and acquisitions do not harm competition.
• Consumers can benefit from a competitive market: The HSR Act helps to ensure that companies do not complete mergers and acquisitions that may harm competition. This can benefit consumers by leading to lower prices, better products, and more innovation. When companies compete with each other, they are incentivized to offer better products and services at lower prices, which can benefit consumers.

In general, the HSR Act is an important law that helps to ensure that companies do not complete mergers and acquisitions that may harm competition. By requiring companies to notify the government before completing certain large transactions, the law gives the government the opportunity to review the deal and determine whether it may have negative effects on competition. This can benefit consumers by leading to lower prices, better products, and more innovation.