Proposed Changes To HSR Process Could Quadruple The Burden Of Making Premerger Notification To Antitrust Enforcement Agencies

The Federal Trade Commission and the Department of Justice Antitrust Division have proposed a massive redesign of the premerger notification process—one that may increase the time to complete an HSR filing from 37 to 144 hours per filing, according to the FTC's own estimate. The proposed revisions would be the first significant changes to the filings under the Hart-Scott-Rodino Antitrust Improvements Act since the late 1970s. If adopted, a new HSR filing would require the disclosure of much more information and documents, and greatly increase the burden on the filing parties.

Although there is no exact indication of when the changes would take effect, it is possible that the new rules could be in place by the end of the year. Parties contemplating transactions subject to HSR reporting obligations should take into account the fact that preparing HSR filings is likely to become significantly more expensive and time-consuming in 2024.