On January 10, 2020, the Federal Trade Commission and Department
of Justice's Antitrust Division ("the Agencies")
announced proposed draft Vertical Merger Guidelines
("VMGs") for public comment. Vertical mergers combine two
or more companies that operate at different levels in the same
supply chain. The VMGs describe how the Agencies currently analyze
vertical mergers and provide updated insight on vertical merger
enforcement policy.
Existing Agency guidance on vertical mergers, promulgated in
1984, has been sharply criticized as outdated and not reflective of
the Agencies' current enforcement approach. If accepted, the
VMGs will replace the 1984 guidance, which will be withdrawn.
