COVID-19 Update: Antitrust Enforcement Remains Robust Despite COVID-19

May 07, 2020

Many clients have asked about the state of federal antitrust enforcement during the current pandemic. We can tell you this: the Agencies are taking longer to clear or challenge deals, but the level of antitrust enforcement, for both merger and conduct cases, remains robust despite the investigating staff operating from home offices and kitchen tables. 

Our progressive-minded friends at the American Antitrust Institute and the leaders of the FTC and DOJ have been locked in a public feud over the level of rigor in the Trump Administration’s antitrust enforcement programs generally. We come down squarely on the side of the FTC/DOJ that the AAI has cherry-picked and manipulated data to support its assertion that enforcement productivity is down. Instead, we see evidence that enforcement during the current regime is comparable to previous Democratic and Republican administrations for the past several decades. Moreover, and despite a call by some progressive FTC Commissioners and Congressional leaders for a COVID‑19 moratorium on most mergers, the FTC and DOJ continue apace at investigating and clearing deals and investigating civil and criminal conduct for antitrust violations.

To make the point that enforcement remains robust, we thought it would be useful to collect reports about all enforcement actions from March 1, 2020 to date.  The reports below that contain a link are linked to official FTC or DOJ press releases, except for the final category on merger-related action from the Hill, which are linked to media sources. Other reports without a link were drawn from various media sources. 

Merger Enforcement

  • AbbVie/Allergan deal cleared with conditions. AbbVie announced on May 5 that the FTC accepted a proposed consent order requiring divestitures.
  • Cengage and McGraw-Hill terminated their merger agreement in response to DOJ concerns (May 4).
  • Bankrupt dairy company Dean Foods and the Dairy Farmers of America reached an agreement with DOJ allowing the parties to merge with conditions (May 1). The companies must divest Dean dairy plants in Illinois, Wisconsin and Massachusetts.
  • DOJ closed its investigation into Prairie Farms’ proposed acquisition of fluid milk processing plants from Dean Foods in the South and Midwest (May 1). DOJ concluded that the plants at issue likely would be shut down if not purchased by Prairie Farms due to Dean’s distressed financial condition and the lack of alternate operators who could buy the plants in time.
  • Willis Towers Watson’s CEO on April 30 downplayed the pandemic’s impact on the regulatory approval process for its acquisition by Aon. The deal would combine the world’s second- and third-largest insurance brokers by sales.
  • Stryker CEO on April 30 stated that the companies expect to close their merger at the end of October. The parties are in the market to divest their STAR ankle reconstructive-joint business and toe-joint products to address FTC concerns. The FTC reportedly still is reviewing the companies’ products and services for additional overlapping products.
  • As of late April, DOJ’s review of Anheuser-Busch’s proposed acquisition of Craft Brew Alliance reportedly is limited to potential effects in Hawaii, where Kona is a leading brand and one of Hawaii’s largest craft breweries.
  • Eldorado entered into a definitive agreement on April 23 to divest two casino properties to Twin River to address FTC concerns regarding its acquisition of Caesars Entertainment.
  • FTC approved a final order settling charges that FXI Holdings, Inc./Innocor, Inc. merger was anticompetitive (April 21). The polyurethane foam producers will divest certain plants in order to preserve competition in three regional markets for the low-density conventional polyurethane that is used in home furnishings.
  • Thermo Fisher Scientific and Qiagen received a Second Request from the FTC on April 20 regarding their proposed deal.
  • Morgan Stanley/E*Trade deal cleared. Morgan Stanley told investors during its quarterly earnings call on April 16.
  • Press reports indicate that DOJ is evaluating Liberty Media’s potential acquisition of iHeartMedia, prompting a group of consumer and artist advocacy organizations to send a letter to DOJ opposing the deal on April 15. DOJ reportedly is looking at competition for advertisements between the two parties.
  • Brazil’s Administrative Council for Economic Defense, or CADE, approved the International Airlines Group/Air Europa deal on April 13. CADE stated that the transaction also has been approved by DOJ, but the approval date has not been disclosed.
  • Under pressure from the FTC and European enforcers, Johnson & Johnson abandoned its acquisition of TachoSil Fibrin Sealant Patch from Takeda Pharmaceuticals on April 10. The FTC then closed its investigation of the proposed acquisition (April 10).
  • FTC approved final order imposing conditions on Compassion First/National Veterinary Associates deal (April 10). The parties must divest three clinics in order to preserve competition in three local geographic markets for various specialty and emergency veterinary services.
  • FTC imposed conditions on Össur Hf’s acquisition of College Park Industries, Inc. (April 7). The conditions aim to remedy competition loss in the U.S. market for myoelectric devices.
  • Constellation Brands announced on April 3 that the FTC is vetting potential buyers for divestiture assets related to Constellation’s sale of more than 30 wine and spirits brands to E. & J. Gallo.
  • Novartis announced on April 2 its mutual agreement with Aurobindo Pharma USA Inc. to terminate the agreement to sell Aurobindo its Sandoz US generic oral solids and dermatology business because FTC approval was not obtained within anticipated timelines.
  • DOJ required divestitures in UTC/Raytheon merger to address vertical and horizontal concerns (March 26). Divestitures will preserve competition in the U.S. for military airborne radios, military GPS systems and reconnaissance components.
  • FTC approved Danaher Corporation’s acquisition of GE Biopharma with conditions (March 19). Danaher agreed to divest 10 products in markets where the company competed head-to-head with GE’s biopharma business.
  • DOJ won historic arbitration of Novelis Inc./Aleris Corporation merger dispute (March 9). DOJ succeeded in its first attempt to resolve a key dispute in a merger challenge through arbitration. Novelis must divest assets in order to consummate transaction with Aleris.
  • There also have been 125 early terminations since March 1, with 89 being granted since the FTC resumed issuing early terminations on March 30 after a brief pause of about two weeks due to COVID-19.


Criminal Enforcement

Business Review Letters


Joint Actions

Merger-Related Actions from The Hill


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