On January 10, 2020, the Federal Trade Commission (FTC) and the
Department of Justice (DOJ) announced proposed draft Vertical
Merger Guidelines (“Draft Guidelines”) for public
comment. The Draft Guidelines outline the agencies
“analytical techniques, practices and enforcement
policy” for vertical mergers under the federal antitrust
laws. Vertical mergers combine two or more companies that
provide different supply chain functions for a common good or
service.
The Draft Guidelines would replace and supersede the DOJ’s
1984 guidelines on vertical mergers. The draft guidelines state
that they should be read in conjunction with the 2010 Horizontal
Merger Guidelines and are intended to provide guidance to
businesses and to assist courts in interpreting and applying
antitrust laws as it relates to vertical mergers.
