Mr. Speaker, I thank the chairman for yielding. H.R. 3843 is a modest yet critical first step to modernizing the antitrust laws. It generates revenue; it makes foreign adversarial interests in transactions more apparent; and it allows more…
Mr. Speaker, I thank the chairman for yielding.
H.R. 3843 is a modest yet critical first step to modernizing the antitrust laws. It generates revenue; it makes foreign adversarial interests in transactions more apparent; and it allows more streamlined antitrust enforcement by State attorneys general.
On the first issue, I think there is general agreement that the fees that are involved in mergers haven't been raised in decades. This simply allows smaller mergers to pay less and larger mergers to pay more.
There is no question about it--this issue came up at the Committee on Rules--this bill does not fund a single additional dollar to any agency. This is a revenue generator. There is no appropriation. The appropriations process will require that this be treated like any other revenue the Federal Government generates, in that the Appropriations Committee, in regular order, will decide how to spend the money.
People should also not be concerned because, under the Consolidated Appropriations Act of 2022, the DOJ Antitrust Division's use of appropriated funds is limited to ``expenses necessary for the enforcement of antitrust and kindred laws.'' There is already a limitation.
It doesn't provide any additional funding. It simply generates revenues and shifts burdens to the largest transactions so that the taxpayers don't have to be responsible for their review.
In recent decades, the rising tide of economic concentration has given rise to monopolies that exercise outsized influence over our democracy and our political institutions. At the same time, the budgets for antitrust enforcement agencies have not kept pace with the demands placed on them.
As Brian Deese, the director of the National Economic Council, explained: ``It is unacceptable for these agencies' resources to lag so far behind the growth of the economy they are charged with protecting.'' That is why the Biden-Harris administration issued a Statement of Administration Policy in support of this bill.
We can have the fight about whether additional resources are necessary during the appropriations process. This bill simply raises the fees, gives smaller businesses a break, and doesn't appropriate a single dollar.
Title III of the bill strengthens antitrust enforcement by preventing the State antitrust actions from being dragged into private litigation in another venue.
This legislation enjoys wide support among the States. Last year, the National Association of Attorneys General and every single State attorney general in the United States wrote a letter urging Congress to pass the bill's amendment to the multidistrict litigation statute ``as soon as possible so that our citizens can benefit from more efficient, effective, and timely adjudication of antitrust actions.''
Mr. Speaker, I, too, urge my colleagues to vote in favor of this legislation, and I applaud them for their sponsorship. I thank Mr. Buck, who has been a tremendous leader on this package of bills. There should be no question. Senator Lee, Senator Cotton, and Senator Grassley have said that this package represents ``a strong bipartisan consensus.''
These bills improve antitrust enforcement without appropriating any more funds. You don't have to believe me. Those are your Republican colleagues who made the same point.
In addition to that, this multijurisdiction litigation robs State attorneys general who bring a Federal antitrust action in Federal court from the ability to litigate in that court, which often, by dragging them to another State, is a great benefit to the big corporations, to the monopolists, but it is harmful to their own constituents, their consumers, their businesses, which is why they support this legislation.
Mr. Speaker, I include in the Record a number of items to reflect the broad support enjoyed by H.R. 3843.
First, is a strong Statement of Administration Policy, which makes clear this legislation is necessary to support the President's mission to enforce the antitrust laws, to combat the excessive concentration of industry, the abuse of market power, and the harmful effects of monopoly and monopsony.
Second, is a letter of support for the State Antitrust Enforcement Venue Act of 2021, signed by every attorney general in the United States, including California's Rob Bonta, who makes clear that: ``States should accordingly be on equal footing with Federal enforcers in deciding where, when, and how to prosecute cases'' and not subject to a system where their enforcement actions ``may be subject to transfer to a multidistrict litigation at the request of the defendant,'' where the cases are typically ``postponed and may be joined with other lawsuits brought by private plaintiffs.''
Third, is a letter from a broad coalition of 36 labor, consumer, and public interest groups, including Public Citizen, Public Knowledge, Open Markets Institute, AFL-CIO, Teamsters, and SEIU, which states: ``This bipartisan, bicameral legislation represents a critical first step for Congress to reverse the course of lax antitrust enforcement that has proved to be destructive to small businesses, workers, communities, and innovation.''
Fourth, is a statement from Chris Jones of the National Grocers Association, who says that: ``This bipartisan bill does not change the antitrust laws; it takes the simple step of helping enforcers have a better shot of deterring abusive marketplace conduct that American consumers cannot afford right now.''
Finally, a statement from Diana Moss, president of the American Antitrust Institute, states that: ``Additional resources are needed to enable the U.S. Department of Justice Antitrust Division and the Federal Trade Commission to review and investigate billion-dollar deals.''
For all of those reasons, Mr. Speaker, I urge my colleagues to support this commonsense package that will help to enhance competition, give us the ability to improve our economy, and benefit consumers, workers, innovators, and small businesses.
Statement of Administration Policy,
H.R. 3843--Merger Filing Fee Modernization Act of 2022--Rep. Neguse, D-
CO, and 39 cosponsors
The Administration supports House passage of H.R. 3843, the
Merger Filing Fee Modernization Act of 2022.
Open, fair, and competitive markets are essential to the
welfare of American families, workers, farmers, and
businesses. As the President stated in his Executive Order on
Promoting Competition in the American Economy, ``it is the
policy of my Administration to enforce the antitrust laws to
combat the excessive concentration of industry, the abuses of
market power, and the harmful effects of monopoly and
monopsony.'' The Act would support this critical mission in
three important respects.
First, to vigorously enforce the antitrust laws, the
Department of Justice (DOJ) and the Federal Trade Commission
(FTC) need the resources to do their jobs. Yet even as the
number, size, and complexity of mergers has grown, the amount
oft he filing fees that parties must pay in advance of
premerger review by the DOJ and the FTC has not kept pace.
Moreover, both agencies' annual appropriations support many
fewer employees today than they did in 1979, even though the
economy has grown significantly since then, and even though
the agencies' core missions involve bringing complex cases
against some of the best-resourced companies in the world.
The Act would update the regime for merger filing fees to
make it fairer and better targeted. The Act would reduce the
size of the fees required for smaller transactions, while
raising them for the largest mergers that often require the
most extensive reviews.
Second, the Act would respect the important role of State
Attorneys General in Federal antitrust enforcement by
harmonizing the process for transferring antitrust cases
filed by State Attorneys General with those filed by Federal
agencies. This would increase the efficiency and efficacy of
antitrust enforcement.
Third and finally, the Act would require disclosure of
merger subsidies by foreign adversaries. Requiring disclosure
of foreign subsidies, such as by Chinese and Russian
entities, in the premerger notification process would assist
the DOJ and the FTC in preventing anticompetitive
transactions through which adversaries could gain influence
over important parts of the economy.
The Administration encourages the House to pass the
bipartisan Merger Filing Fee Modernization Act of 2022 and
looks forward to working with Congress on this important
legislation.
Mr. Speaker, I thank the chairman again for yielding.
I just want to make clear, once again, that this bill does not appropriate money to the FTC, and I think the chairman of the Judiciary Committee and I will continue to advocate for more funding. But this is not an appropriations bill. The ultimate decision about whether money will be appropriated to the FTC or the Department of Justice will be made like every other appropriation: by the Members of the Congress of the United States after a robust debate, and the Congress will decide.
This generates revenue and makes certain that big mergers are paid for by gigantic near monopolies of big corporations and not by our constituents, and it lowers the price for merger reviews on smaller transactions. So that is all it does.
Secondly, it is important to remember that, as Mr. Buck said, this isn't a Republican or Democrat bill.
I want to read to you a statement from Senator Klobuchar and Senator Durbin:
``The Merger Filing Fee Modernization Act is the product of years of bipartisan work in both the House and
Senate to improve the enforcement of our antitrust laws and protect competition and consumers. This package of bills will update merger filing fees and help ensure that the Federal antitrust agencies can be properly funded, that information on foreign subsidies is made available to Federal enforcers, and that State antitrust enforcement can proceed more efficiently and without needless delays.''
I have a statement from Senator Lee, Senator Cotton, and Senator Grassley--Republicans in the Senate--who say: ``This package represents a strong, bipartisan consensus approach to strengthening enforcement of the Federal antitrust laws, against both Big Tech and other bad actors.''
So this is widely supported by Republicans and Democrats in both Chambers, and I think it is an example of where we can work together collectively to respond to a serious problem: the consolidation of economic power. Antitrust is important because we know competition is the single greatest driver of innovation. Without competition you don't have innovation, and innovation produces more choices, better quality, and lower prices. It benefits consumers, small businesses, and workers.
I say again, this is about supporting competition with some very commonsense proposals that have strong bipartisan support in both Chambers.
We can finally let Big Tech know that the time in which they can do whatever they want and continue to behave as monopolists is coming to an end.
Overwhelmingly, the American people support reining in Big Tech--over 70 percent in poll after poll.
But one other thing I wanted to just mention is that with concentrated economic power often comes concentrated political power. That is one of the dangers of monopoly. They have too much political power. Let's prove them wrong and pass this bill.