The U.S. Federal Trade Commission and the Department of Justice today launched a joint public inquiry that could lead to the overhaul of the regulatory guidelines governing company mergers.

An update to merger guidelines would have the potential to affect acquisitions in the tech sector. Several of the tech industry’s leading players are already facing increased regulatory scrutiny over matters such as in-app payments, online advertising and chip industry competition. 

The joint public inquiry announced by the FTC and Justice Department today will run until March 21. Through the inquiry, the FTC and Justice Department will seek to collect input from the public on potential ways that antitrust guidelines concerning mergers could be improved. 

“This inquiry launched by the FTC and DOJ is designed to ensure that our merger guidelines accurately reflect modern market realities and equip us to forcefully enforce the law against unlawful deals,” said FTC Chair Lina Khan. “Hearing from a broad set of market participants, especially those who have experienced first-hand the effects of mergers and acquisitions, will be critical to our efforts.”

The FTC and Justice Department have listed several antitrust topics on which they seek to receive input from the public. One of the topics on the agenda is the digital economy.

“The agencies seek information on how to account for key areas of the modern economy like digital markets in the guidelines, which often have characteristics like zero-price products, multi-sided markets, and data aggregation that the current guidelines do not address in detail,” the official announcement for the inquiry stated.

Additionally, the FTC and Justice are seeking feedback on whether the methods used to evaluate the market impact of a merger should be updated. Regulators rely on various metrics to determine if a proposed acquisition would harm the competition. The FTC and Justice are asking for suggestions on additional metrics and factors that could potentially be used to evaluate if a deal may be anticompetitive.

Another focus of the inquiry is finding potential ways to improve how the agencies approach matters involving “potential and nascent competitors.” The phenomenon of established companies acquiring emerging rivals is drawing growing regulatory attention. Last month, the FTC, 46 states, the District of Columbia and Guam sued Meta Platforms Inc. over the company’s acquisition of rivals in the social media market.

The newly launched public inquiry also covers a number of other antitrust topics. Individuals, private sector organizations, government agencies and others interested in providing input will have 60 days to submit their feedback. 

“The information will be used by the agencies to consider updates and revisions to the guidelines,” the FTC and Justice Department stated. “If such revisions are contemplated in light of the evidence received and the agencies’ independent research, the agencies will publish proposed guidelines for public comment.”

Image: FTC