WASHINGTON - U.S. Senators Amy Klobuchar (D-MN), Chairwoman of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, and Chuck Grassley (R-IA), along with Representatives Ken Buck (R-CO), Joe Neguse (D-CO), and Jerry Nadler (D-NY) sent a letter to Senators Patty Murray (D-WA) and Susan Collins (R-ME), Chair and Ranking Member of the U.S. Senate Committee on Appropriations, as well as to Representatives Kay Granger (R-TX) and Rosa DeLauro (D-CT), Chair and Ranking Member of the U.S. House of Representatives Committee on Appropriations, to urge them to support antitrust enforcement by ensuring the Department of Justice Antitrust Division can fully access the premerger filing fees as envisioned under the Merger Filing Fee Modernization Act.
In December 2022, Congress enacted the bipartisan Merger Filing Fee Modernization Act to update the funding formula for premerger filing fees as part of the year-end government funding package. The legislation updated the merger filing fees for the first time since 2001 - lowering fees on smaller acquisitions and increasing them for the largest mergers - raising additional revenue that Congress intended to be used to strengthen enforcement of the antitrust laws. The Antitrust Division has been partially funded through these merger filing fees since 1989 when Congress amended the Hart-Scott-Rodino Antitrust Improvements Act.
“While we appreciate the work of the Appropriations Committee, as written, the bill would undermine the intent of the Merger Filing Fee Modernization Act, which was supported in the Senate by a vote of 88-8 and was enacted in 2022 as part of the Consolidated Appropriations Act of 2023.” wrote the lawmakers. “The Merger Filing Fee Modernization Act restructured premerger filing fees, raising fees for the largest mergers and reducing them for smaller transactions, and was explicitly intended to provide additional funding, through access to the merger filing fees, to strengthen enforcement of the antitrust laws.”
“Unfortunately, the 2024 appropriations bill does not provide the Antitrust Division with full access to the premerger filing fees.” continued the lawmakers. “We urge you to support the enforcement work of our antitrust agencies by committing to ensure the DOJ Antitrust Division can fully access the premerger filing fees as envisioned under the Merger Filing Fee Modernization Act. This will allow the Antitrust Division to use those additional resources to more effectively to fulfill its mission to protect competition and consumers.”
Full text of the letter is available HERE and below:
Dear Chairs Murray and Granger and Ranking Members Collins and DeLauro:
We write in strong opposition to the funding levels for the Antitrust Division of the U.S. Department of Justice (DOJ) in the recently-circulated 2024 appropriations package. While we appreciate the work of the Appropriations Committee, as written, the bill would undermine the intent of the Merger Filing Fee Modernization Act, which was supported in the Senate by a vote of 88-8 and was enacted in 2022 as part of the Consolidated Appropriations Act of 2023. The Merger Filing Fee Modernization Act restructured premerger filing fees, raising fees for the largest mergers and reducing them for smaller transactions, and was explicitly intended to provide additional funding, through access to the merger filing fees, to strengthen enforcement of the antitrust laws.
Unfortunately, the 2024 appropriations bill does not provide the Antitrust Division with full access to the premerger filing fees. Specifically, the bill prohibits the Antitrust Division from using filing fees collected in excess of $233,000,0000. This provision is in direct conflict with the Merger Filing Fee Modernization Act and forces any additional funding from the merger fees into a separate appropriations process before those funds can go to the Antitrust Division. This limitation will hamper the ability of the Antitrust Division to utilize those additional funds to enhance its enforcement activities.
While the American economy has grown significantly in size, the funding for our federal antitrust agencies has failed to keep pace. As an example, the Antitrust Division at the Department of Justice had 352 fewer employees in 2022 than it did in 1979. While there has long been a strong commitment to fully enforce our antitrust laws, we must ensure the DOJ has ample resources to take on cases that have become more complex and involve some of the largest companies the world has ever known.
We urge you to support the enforcement work of our antitrust agencies by committing to ensure the DOJ Antitrust Division can fully access the premerger filing fees as envisioned under the Merger Filing Fee Modernization Act. This will allow the Antitrust Division to use those additional resources to more effectively to fulfill its mission to protect competition and consumers.
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