Key facts
- The US Justice Department is implementing a new policy to fast-track merger investigations.
- This policy involves reducing the amount of information companies must initially provide.
- The move is intended to streamline reviews, with companies agreeing to allow more time for initial concerns.
- Experts and career DOJ attorneys express concerns that this approach could harm consumers and increase market concentration.
- Specific mergers, including those involving Viva Aerobus, Volaris, Saipem, Subsea7, and TransDigm, are cited as examples of expedited reviews or blocked investigations.
The US Justice Department (DOJ) is implementing a new policy to expedite antitrust reviews of proposed corporate mergers, a move that critics fear could lead to increased consumer prices and reduced market competition. Under the revised approach, enforcers will initially focus on the most significant risks associated with a deal, with companies agreeing to allow the government adequate time for a more thorough assessment of these initial concerns. If these early issues are resolved, the review will conclude.
This shift in enforcement strategy comes as Trump administration appointees have reportedly overruled career attorneys who had recommended lawsuits or launched reviews into mergers that could potentially lead to price gouging. Experts warn that this abdication of consumer protection laws could result in higher prices for goods and services, including gas, airline travel, and federal military contracts. The division's historical mission, dating back to the Great Depression, has been to limit companies' monopoly power before approving mergers.
Sources indicate that DOJ staff have privately expressed concerns that the administration is effectively choosing not to enforce antitrust laws designed to prevent single-source providers from charging exorbitant prices. The DOJ leadership is reportedly pushing to approve mergers without comprehensive reviews or legal challenges. Specific deals mentioned include the proposed merger of Mexican low-cost carriers Viva Aerobus and Volaris, and the combination of Italian firm Saipem with UK firm Subsea7, which controls a significant portion of subsea oil operation equipment sales. Major oil companies like ExxonMobil, Petrobras, and TotalEnergies have formally objected to the Saipem/Subsea7 merger, citing concerns about creating a subsea monopoly that would increase costs and force clients into expensive contracts.
In another instance, Trump appointees have reportedly blocked the antitrust division from suing to prevent aerospace giant TransDigm from acquiring a competitor. This move followed concerns raised by lawmakers, including Senator Elizabeth Warren, about TransDigm's history of acquiring companies to limit competition and inflate prices for specialized military aircraft parts. The shift in antitrust enforcement approach has been described by one former assistant attorney general as a "unilateral surrender on antitrust enforcement" that will ultimately harm consumers.