FTC and DOJ Expand Search for Businesses Using “Roll Up” Strategies to Reduce Competition Across U.S. Economy

The Federal Trade Commission (“FTC”) and the Antitrust Division of the Department of Justice (“DOJ”) have announced that they are expanding their search for businesses using “roll up” strategies to consolidate competitors and reduce competition across the U.S. economy. This latest joint Request for Information invites members of the public to submit examples of companies using a “serial acquisition strategy,” regardless of the market or industry where those firms compete.

Previously, the agencies had focused their efforts on the healthcare industry, but this new Request for Information significantly expands the scope to include any industry in the U.S. economy. The agencies have expressed skepticism towards multiple mergers at once or in succession by different players in the same industry, warning that a merger creating a firm with a market share of as little as 30% could be presumed to substantially lessen competition in certain circumstances.

The FTC has been aggressive in pursuing litigation against serial acquisition strategies in the healthcare industry, with recent efforts including the launch of an online reporting portal for the public to report potentially unfair and anticompetitive healthcare practices. The agencies are now seeking input from consumers, businesses, advocacy organizations, and others to identify specific examples of companies using “serial acquisition strategies” and describe the effects on competition.

Members of the public have 60 days to make submissions, and comments submitted in response to the Request for Information may inform the government’s enforcement priorities and future actions across the U.S. economy. This latest effort by the FTC and DOJ aims to combat unfair and anticompetitive practices in various industries, not just limited to healthcare.