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DOJ, FTC Temporarily Suspend HSR Early Termination
Practical Law Legal Update w-029-5445 (Approx. 3 pages)
DOJ, FTC Temporarily Suspend HSR Early Termination
by Practical Law Antitrust
| Law stated as of 04 Feb 2021 • USA (National/Federal) |
The Antitrust Division of the US Department of Justice (DOJ) and Federal Trade Commission (FTC) announced that the agencies will be temporarily suspending the grant of early terminations for filings under the Hart-Scott-Rodino Act (HSR Act). The agencies cited a high volume of HSR filings and challenges related to the transition to a new administration as reasons for the suspension.
On February 4, 2021, the Federal Trade Commission (FTC), with the support of the Antitrust Division of the Department of Justice (DOJ) announced that the agencies will be temporarily suspending the grant of early termination to filings made under the Hart-Scott-Rodino Act (HSR Act).
The agencies did not state when the procedure for early termination will resume, but that they anticipate the suspension to be brief. A similar temporary suspension was instituted in March 2020, for approximately two weeks in response to the Premerger Notification Office's establishment of its e-filing system.
The FTC noted that it will use the time during the suspension to review the processes and procedures used to grant early termination to filings. In addition, the suspension was necessary because the agencies are facing:
- An unprecedented volume of HSR filings.
- Challenges associated with the transition to a new administration.
- Ongoing impacts of COVID-19 on government operations.
For more on the HSR Act generally, see Practice Note, Hart-Scott-Rodino Act: Overview. For more reportability of transactions under the HSR Act, see Practice Note, Determining Hart-Scott-Rodino Applicability.