The US Justice Department and Federal Trade Commission’s new merger guidelines represent a radical departure from the neoliberal assumptions that have long underpinned US antitrust enforcement. By directing agencies to focus on market structure and power, the guidelines could stop runaway consolidation and help preserve US democracy.
WASHINGTON, DC – In the summer of 1982, the United States government sent corporate America a love letter. President Ronald Reagan’s top antitrust official, William Baxter, who made no secret of his desire to use his position to assist the country’s largest companies, issued the Justice Department’s new merger guidelines, instructing staff how to determine whether a merger violated antitrust laws and should be blocked. Baxter’s new rules made it clear to big business that federal agencies would no longer limit their ability to amass power. An era of nearly unrestricted corporate consolidation followed.
WASHINGTON, DC – In the summer of 1982, the United States government sent corporate America a love letter. President Ronald Reagan’s top antitrust official, William Baxter, who made no secret of his desire to use his position to assist the country’s largest companies, issued the Justice Department’s new merger guidelines, instructing staff how to determine whether a merger violated antitrust laws and should be blocked. Baxter’s new rules made it clear to big business that federal agencies would no longer limit their ability to amass power. An era of nearly unrestricted corporate consolidation followed.