Merger Filing Fee Modernization Act Of 2022
Mr. Chairman, Americans are tired of monopolies that saddle them with less choices and higher prices. The Federal Trade Commission and the Department of Justice must have the resources that they need to aggressively combat anticompetitive…
Mr. Chairman, Americans are tired of monopolies that saddle them with less choices and higher prices.
The Federal Trade Commission and the Department of Justice must have the resources that they need to aggressively combat anticompetitive mergers.
This commonsense, bipartisan legislation that we are considering today is absolutely needed right now in order to protect consumers. It makes giant companies pay their fair share, improves transparency, and streamlines litigation.
This should not be--and it isn't--a partisan piece of legislation. At a hearing I was chairing as the chair of the Subcommittee on Consumer Protection and Commerce, we had testimony last year from a Bush- appointed member of the Federal Trade Commission, Bill Kovacic, who called for a tripling in the FTC budget. He recognized that this agency should play a leading role in enforcing our laws that protect consumers, workers, and innovation.
I urge all my colleagues to vote in favor of this legislation.
Mr. Speaker, I include in the Record a very compelling statement made by both Senator Klobuchar and Senator Durbin in favor of the legislation.
(By Amy Klobuchar, U.S. Senator from Minnesota, Sept. 29, 2022)
Klobuchar, Durbin Issue Statement Urging House to Pass Bipartisan
Legislation to Strengthen Antitrust Enforcement
Washington.--U.S. Senators Amy Klobuchar (D-MN), Chairwoman
of the Senate Judiciary Subcommittee on Competition
Policy, Antitrust, and Consumer Rights, and Dick Durbin (D-
IL), Chair of the Senate Judiciary Committee, released the
statement below urging the House of Representatives to pass--
H.R. 3843, the Merger Filing Fee Modernization Act.
``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. We call on all House Members to
support this important bipartisan legislation.''
The Merger Filing Fee Modernization Act includes the House
companion to Klobuchar's merger filing fees reform bill with
Senator Chuck Grassley (R-IA) and Senator Durbin to help
ensure antitrust enforcers have sufficient resources to
protect consumers by updating merger filing fees and lowering
the burden on small and medium-sized businesses. It also
includes the State Antitrust Enforcement Venue Act,
Klobuchar's legislation with Senator Mike Lee (R-UT) to
empower state antitrust enforcement by allowing state
attorneys general litigating antitrust cases to remain in
their selected courts. H.R. 3843 has been endorsed by a
coalition of State Attorney Generals:
Mr. Speaker, I also include in the Record Mr. Kovacic's testimony.
House of Representatives,
Committee on Energy and Commerce,
Hearing Before the Subcommittee on Consumer Protection and Commerce
Safeguarding American Consumers: Fighting Frauds and Scams During the
Pandemic
Testimony of William E. Kovacic, February 4, 2021
Federal Trade Commission Budget and Compensation Levels for Employees
There is a grave mismatch between the duties Congress has
assigned the FTC and the resources it has given the agency to
carry out its mandate. There is a serious need to raise the
FTC's budget, but not simply to build a larger staff by
hiring more people. Reforms to the federal compensation
system are necessary to attract and retain a larger number of
elite personnel. I do not see how the FTC or many other
public agencies can recruit and retain necessary personnel
without a significant increase in the salaries paid to
managers and staff.
Consider two possibilities for compensation reform. The
first is to align FTC salaries with the highest scale paid to
the various US financial service regulators. One model would
be the compensation scale used to pay employees of the
banking regulatory agencies; the salary scale for these
bodies exceeds the General Schedule (GS) federal civil
service wage scale by roughly twenty percent. In adopting the
Dodd-Frank Wall Street Reform and Consumer Protection Act in
2010, Congress concluded that the importance of the mission
of the new Consumer Financial Protection Bureau (CFPB)
warranted higher salaries for the agency's personnel. If the
higher salary scale made sense for the CFPB, I see no good
reason why a more generous compensation schedule is not
appropriate for what is the nation's leading consumer
protection agency (and its leading federal data protection
authority.
A second, more ambitious alternative would be to triple the
FTC's existing budget of about $330 million per year and use
the increase mainly to raise salaries and partly to add more
employees. This experiment might be carried out for a decade
to test whether a major hike in pay would increase the
agency's ability to recruit the best talent, retain the
talent for a significant time, and apply that talent with
greater success in a program that involves prosecuting
numerous ambitious cases and devising other significant
policy initiatives.
A major increase in compensation, either by adopting the
CFPB model or trying our my more ambitious proposal, is a
crucial test of our national commitment to improve the
foundations for effective consumer protection enforcement.
The nation should spend what it takes to get the best
possible personnel to run the difficult cases (and carry out
other measures, such as the promulgation of trade regulation
rules) that will be the pillars of a new, expanded
enforcement program. Such steps will become even more
important if new political leadership seeks to close the
revolving door, which has operated as a mechanism to
encourage attorneys and economists to accept lower salaries
in federal service in the expectation of receiving much
higher compensation in the private sector at a later time.