FTC And DOJ Propose 2020 Vertical Merger Guidelines

The FTC and the DOJ's Antitrust Division proposed draft Vertical Merger Guidelines ("Vertical Guidelines") that would replace the DOJ's 1984 Non-Horizontal Merger Guidelines. The proposed new Vertical Guidelines present an analytical framework that the agencies plan to use in evaluating whether proposed vertical mergers would violate antitrust laws. A vertical merger is a merger between two firms that are in the same supply chain. By contrast, a horizontal merger is a merger between firms that compete for the same customers. The proposed Vertical Guidelines rely on many of the same principles, such as market definition, that may be found in the agencies' joint Horizontal Merger Guidelines. The proposal is subject to a 30-day comment period that expires on February 11, 2020.