Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, submitted comments on the Federal Trade Commission’s (FTC) proposed amendments to the premerger notification rules that implement the Hart-Scott-Rodino Antitrust Improvements Act (HSR). The following statement can be attributed to TechNet President and CEO Linda Moore:
“Startups thrive when they have access to capital and markets. Mergers and acquisitions (M&A) are an essential part of the startup ecosystem and enable investments in the next generation of entrepreneurs, which drives innovation, creates new jobs, and strengthens our economy. For most startups, acquisition is an attractive and common exit opportunity. Last year, 1164 venture-backed companies were acquired, while just 36 went public.
“At a time when we are in a race to win the next era of innovation, proposed amendments to premerger notification rules will have a chilling effect on our nation’s M&A activity. These changes will place undue burdens on proposed mergers with no anti-competitive concerns, create uncertainty and confusion for companies that are seeking to comply with HSR in good faith, and hurt U.S. innovation, our economy, and our global competitiveness.
“Between 2001 and 2020, the government challenged approximately 780 mergers, with the merging parties winning in court only 11 times. The FTC already has the tools in place to protect competition, and we urge them to avoid any arbitrary restrictions that disproportionately disrupt and hurt the startup ecosystem and our economy.”
You can read the full comments here.