Sen Klobuchar Introduces Legislation to Modernize Antitrust Enforcement and Promote Competition

Sen. Amy Klobuchar (D-MN) reintroduced two pieces of legislation to modernize antitrust enforcement and promote competition. 1) The Merger Enforcement Improvement Act would update existing law to reflect the current economy and provide agencies with better information post-merger to ensure that merger enforcement is meeting its goals. This bill would modernize antitrust enforcement by improving the agencies’ ability to assess the impact of merger settlements, requiring studies of new issues, adjusting merger filing fees to reflect the 21^st century economy, and providing adequate funding for antitrust agencies to meet their obligations to protect American consumers. 2) The Consolidation Prevention and Competition Promotion Act of 2019 would restore the original purpose of the Clayton Antitrust Act to promote competition and protect American consumers. The bill would strengthen the current legal standard to help stop harmful consolidation that may materially lessen competition. It would clarify that a merger could violate the statute if it gives a company “monopsony” power to unfairly lower the prices it pays or wages it offers because of lack of competition among buyers or employers. The bill further strengthens the law to guard against harmful “mega-mergers” and deals that substantially increase market concentration, shifting the burden to the merging companies to prove that their consolidation does not harm competition.