IN process: New Materials will be posted as they are finalized
Dale Collins
Georgetown University Law Center
NB: "±" indicates that the hyperlink will take you to another site.
This page contains the memorandum introducing the course, class schedule, reading materials, and class notes for the Merger Antitrust Law course taught during the 2023 fall semester at Georgetown. It also contains links to related supplemental materials on the Applied Antitrust web site. There is no textbook for this course. Everything you need will be linked to this page.
Introduction and "Rules of the Road" Memorandum (revised Aug. 8, 2024)
Class schedule 0.1 (revised July 8, 2024)
Cumulative class slides deck
DOJ/FTC Merger Guidelines (rev. Dec. 18, 2023)
DOJ/FTC Horizontal Merger Guidelines (rev. Aug. 19, 2010; superseded Dec. 18, 2023
Required Reading
Comments and Optional Reading
Unit 1
Merger Antitrust Law: TransDigm/Takata
Class 1
Tuesday, August 27
Introduction to course
TransDigm/Takata
Introduction and "Rules of the Road" Memorandum (revised Aug. 8, 2024)
Merger Antitrust Law: Introduction to Substance and Process (class notes)
Class 1 homework assignment (optional in the first week)
TransDigm/Takata case study (complete)
Note on Antitrust Hornbooks and Other Study Aids
Demand curves and consumer surplus (YouTube videos):
Marginal Revolution University, The Demand Curve
Marginal Revolution University, A Deeper Look at the Demand Curve
Marginal Revolution University, What Is Consumer Surplus?
Marginal Revolution University, What Is Producer Surplus?
Marginal Revolution University, What Is Deadweight Loss?
Deadweight Loss- Key Graphs of Microeconomics
Consumer welfare and alternative goals of antitrust law
± Stigler Center, Defining the Consumer Welfare Standard (Apr. 20, 2023)
± ABA Section of Antitrust Law, Is Consumer Welfare In Hot Water? (Sep't 9, 2022) (YouTube) (transcript)
Twombly/Iqbal
Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007)
Ashcroft v. Iqbal, 556 U.S. 662 (2009)
Unit 2
Predicting Merger Antitrust Enforcement Challenges
Class 2
Thursday, August 29
Predicting merger antitrust enforcement challenges
Advising clients at the first client meeting
DOJ/FTC 2010 Horizontal Merger Guidelines
Predicting Merger Antitrust Enforcement Challenges (class notes)
Class 2 homework assignment (optional in the first week)
Changes in antitrust enforcement policy
± Susan Athey & Aviv Nevo, DOJ and FTC Chief Economists Explain the Changes to the 2023 Merger Guidelines, ProMarket.org (Dec. 19, 2023)
Lina M. Khan, Chair. Fed. Trade Comm'n, Remarks As Prepared for Delivery Economic Club of New York, New York, NY (July 24, 2023),
± Oversight of Federal Enforcement of the Antitrust Laws, Hearing before the Subcomm. on Competition Policy, Antitrust, and Consumer Rights of the S. Comm. on the Judiciary (Sept. 20, 2022) (video)
Jonathan Kanter. Ass't Att'y Gen., Antitrust Div., U.S. Dep't of Justice (prepared statement)
Lina Khan, Chair, Fed. Trade Comm'n (prepared statement)
Lina M. Khan, Chair. Fed. Trade Comm'n, Remarks Prepared for Delivery at the Fordham Annual Conference on International Antitrust Law & Policy, New York, NY (Sept. 16, 2022)
Jonathan Kanter, Ass't Att'y Gen. Antitrust Div., U.S. Dep't of Justice, Respecting the Antitrust Laws and Reflecting Market Realities, Prepared Remarks Before the Georgetown Antitrust Law Symposium, Washington, DC (Sept. 13, 2022)
Noah Joshua Phillips, Comm'nr, Fed. Trade Comm'n, Disparate Impact: Winners And Losers From The New M&A Policy, Prepared Remarks Before the Eighth Annual Berkeley Spring Forum on M&A and the Boardroom, San Francisco, CA (Apr. 27, 2022)
± Jeffrey T. Macher, John W. Mayo, David Sappington & Mark Whitener, The Evolution of Judicial Standards: Evidence from Litigated Merger Trials (Georgetown McDonough School of Business Research Paper No. 3809174, June 5, 2022).
Logan Billman & Steven C. Salop, Merger Enforcement Statistics: 2001-2020 (Nov. 4, 2022)
The 2010 Horizontal Merger Guidelines
Evolution of the Merger Guidelines (not yet updated to include the 2023 Draft DOJ/FTC Draft Merger Guidelines)
± Carl Shapiro & Howard Shelanski, Judicial Response to the 2010 Horizontal Merger Guidelines, 58 Rev. Indus. Org. 51 (2021)
± Joseph Farrell & Carl Shapiro, The 2010 Horizontal Merger Guidelines After 10 Years, 58 Rev. Indus. Org. 1 (2021)
± Carl Shapiro, The 2010 Horizontal Merger Guidelines: From Hedgehog to Fox in Forty Years, 77 Antitrust 701 (2010).
2022-23 Merger Guidelines revision project
Press Release, U.S. Dept. of Justice & Fed. Trade Comm'n, Justice Department and Federal Trade Commission Seek to Strengthen Enforcement Against Illegal Mergers (Jan. 18, 2022)
Press Release, Fed. Trade Comm'n, FTC and DOJ Seek Comment on Draft Merger Guidelines (July 19, 2023)
Press Release, U.S. Dep't of Justice, Justice Department and FTC Seek Comment on Draft Merger Guidelines (July 19, 2023)
U.S. Dep’t of Justice & Fed. Trade Comm’n, Draft Merger Guidelines (July 19, 2023)
U.S. Dep’t of Justice & Fed. Trade Comm’n, Fact Sheet–2023 Draft Merger Guidelines for Public Comment (July 19, 2023)
Unit 3
Some Merger Antitrust History
Class 3
Tuesday, September 3
A Brief History of Antitrust Law (class notes)
Commentary
± Herbert Hovenkamp, The Slogans and Goals of Antitrust Law (June 14, 2022).
Dale Collins, Antitrust on the Brink: The Calls for Radical Reform, Presentation to the Antitrust Law Association (Sept. 16, 2021) (slides)
Christine S. Wilson, Comm'r, Fed. Trade Comm'n, The Neo-Brandeisian Revolution: Unforced Errors and the Diminution of the FTC, Prepared Remarks for the ABA Antitrust Law Section’s 2021 Fall Forum (Nov. 9, 2021)
± Herbert Hovenkamp & Fiona Scott Morton, Framing the Chicago School of Antitrust Analysis, 168 U. Pa. L. Rev. 1843 (2020)
± Carl Shapiro, Antitrust in a Time of Populism, 61 Int'l J. Indus. Org. 714 (2018).
Withdrawal of FTC 2015 Section 5 Policy Statement
Fed. Trade Comm'n, Statement of Enforcement Principles Regarding “Unfair Methods of Competition” Under Section 5 of the FTC Act (2015)
FTC video of July 1, 2021, open meeting (excerpts of Section 5 Policy Statement discussion)
NB: This is a very large file that needs to be downloaded before it can be played. Alternatively, go to the complete streaming version on the FTC web page, listen to the introduction up to the first issue and then skip to around 43:20
Congressional testimony
Oversight of Federal Enforcement of the Antitrust Laws: Hearing Before the Subcomm. on Competition Policy, Antitrust & Consumer Rights of the S. Comm. on the Judiciary, 117th Cong. (Sept. 20, 2022) (statement of the Federal Trade Commission)
Dissenting Statement of Commissioners Noah Joshua Phillips and Christine S. Wilson, Federal Trade Commission (Sept. 20, 2022)
2022 FTC Section 5 Policy Statement
Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the Federal Trade Commission Act (Nov. 10, 2022) (3-1 vote)
Press Release, Fed. Trade Comm'n, FTC Restores Rigorous Enforcement of Law Banning Unfair Methods of Competition (Nov. 10, 2022)
Statement of Chair Lina M. Khan Joined by Commissioner Rebecca Kelly Slaughter and Commissioner Alvaro M. Bedoya (Nov. 10, 2022)
Statement of Commissioner Alvaro M. Bedoya, Joined by Chair Lina M. Khan and Commissioner Rebecca Kelly Slaughter (Nov. 10, 2022)
Dissenting Statement of Commissioner Christine S. Wilson (Nov. 10, 2022)
Unit 4
The DOJ/FTC Merger Review Process
Class 4
Thursday, September 5
Settlements
Kroger/Albertsons
The DOJ/FTC Merger Review Process (class notes)
Class 4 homework assignment #1
Optional: Albertsons/Safeway case study (complete)
NB: There is no need for you to look at this case study in order to do the homework. It is here only if you have some interest in learning more about the transaction.
Class 4 homework assignment #2 (preparation for client meeting)
± Hart-Scott-Rodino Act, Clayton Act § 7A, 18 U.S.C. § 18a (Premerger notification and waiting period)
± HSR Form (ver. 1.0.2) (updated Aug. 4, 2017)
± HSR form instructions (Sept. 25, 2019)
Note: These forms may not display on some browsers. If you do not get the proper forms, please hit the "download" button on your browser and view the download for Adobe Acrobat Viewer (or just search for the forms using your favorite search engine).
Revised Jurisdictional Thresholds for Section 7A of the Clayton Act, 89 Fed. Reg. 7708 (Feb. 5, 2024) (effective Mar. 6, 2024)
Merger Filing Fee Modernization Act of 2022 (contained in the Consolidated Appropriations Act of 2023, Pub. L. No. 117-328, Div. GG, 136 Stat. 4459, ____ (Dec. 29, 2022)).
"Clearance"
U.S. Gov't Accountability Office, DOJ and FTC Jurisdictions Overlap, but Conflicts Are Infrequent (Jan. 2023)
Preliminary investigations
± John W. Mayo, Robert Press & Mark Whitener, Understanding Early-Stage Merger Investigations: What Drives the Antitrust Agencies? (Sept. 2023)
Second request investigations
DOJ Model Second Request (Apr. 2022)
Note: This document does not appear on the ATD's website. It was obtained through a FOIA request.
FTC Model Second Request (Oct. 2021)
Model timing agreements
DOJ Model Timing Agreement (July 2022)
Note: This document does not appear on the ATD's website. It was obtained through a FOIA request.
FTC Model Timing Agreement (Feb. 2019)
Privilege
Order re Petition to Limit or Quash Subpoenas Ad Testificandum Dated April 24, 2009, File No. 091-0064 (F.T.C. July 21, 2009) (in the FTC’s investigation of Thoratec Corp.’s pending acquisition of HeartWare International)
Blockbuster "substantial compliance" second request litigation
Complaint for Injunctive Relief Pursuant to Section 7A(g)(2) of the Clayton Act and Section 13(b} of the Federal Trade Commission Act, FTC v. Blockbuster. Inc., No. 1:05-cv-00463-ESH (D.D.C. filed Mar. 4, 2005)
Docket sheet (downloaded Aug. 5, 2023)
Motion for Order Pursuant to Section 7A(g)(2) of the Clayton Act and Section 13(b) of the Federal Trade Commission Act--Mar. 4, 2005
Supporting memorandum filed under seal
FTC's reply filed under seal
Notice of Settlement (Mar. 9, 2005)
Agreed Order Regarding Extension of Hart-Scott-Rodino Waiting Period (Mar. 9, 2005)
Dismissed with prejudice (Mar 9, 2005)
Withdrawal of FTC 1995 Policy Statement on Prior Approvals
Press Release, Fed. Trade Comm’n, FTC Acts To Reduce Prior-Approval Burden on Companies in Merger Cases (June 22, 1995)
Fed. Trade Comm'n, Notice and Request for Comment Regarding Statement of Policy Concerning Prior Approval and Prior Notice Provisions in Merger Cases, 60 Fed. Reg. 39745 (Aug. 3, 1995).
Press Release, Fed. Trade Comm’n, FTC Rescinds 1995 Policy Statement that Limited the Agency’s Ability to Deter Problematic Mergers (July 21, 2021).
Dissenting Statement of Commissioner Noah Joshua Phillips (July 21, 2021)
Other supplemental materials
± FTC Competition Enforcement Database: Merger Enforcement Actions (since 1996)
± FTC Enforcement: Cases and Proceedings
± DOJ Merger Enforcement web page
± DOJ and FTC, Hart-Scott-Rodino Annual Report: Fiscal Year 2021 (Feb. 2023) (latest published report)
Makan Delrahim, It Takes Two: Modernizing the Merger Review Process, Prepared Remarks Before the 2018 Global Antitrust Enforcement Symposium, Washington, DC (Sept. 25, 2018)
Unit 5
Merger Antitrust Settlements
For additional supplemental materials, see 13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com
Class 5
Tuesday, September 10
Settlements
Kroger/Albertsons
Press Release, The Kroger Co., Kroger and Albertsons Companies Announce Comprehensive Divestiture Plan with C&S Wholesale Grocers, LLC in Connection with Proposed Merger (September 8, 2023)
Unit 5. Merger Antitrust Settlements (class notes)
There is no homework assignment for this class
Case studies
Albertsons/Safeway case study (complete)
TransDigm/Takata case study (complete)
DaVita/University of Utah case study (complete)
Kroger/Albertsons (investigation only; currently in litigation)
Agency materials: DOJ
Makan Delrahim,Ass't Att'y Gen., U.S. Dep't of Justice, Antitrust Div., Improving the Antitrust Consensus, Prepared Remarks Before the New York State Bar Association Antitrust Section, New York, NY (Jan. 25, 2018)
U.S. Dep't of Justice, Antitrust Div., Antitrust Division Manual Ch. 4 D: Negotiating and Entering Consent Decrees (5th ed. updated Mar. 2014)
U.S. Dep't of Justice, Antitrust Div., Antitrust Division Policy Guide to Merger Remedies (rev. June 2011) (news release)
Agency materials: FTC
Fed. Trade Comm’n, Bureau of Competition, Negotiating Merger Remedies (Jan. 2012)
Fed. Trade Comm'n, The FTC’s Merger Remedies 2006-2012: A Report of the Bureaus of Competition and Economics (Jan. 2017) (FTC news release)
Dan Ducore & Naomi Licker, Bureau of Competition, Fed. Trade Comm'n, Looking Back (Again) at FTC Merger Remedies (Feb. 3, 2017)
Fed. Trade Comm'n, Bureau of Competition, Frequently Asked Questions About Merger Consent Order Provisions (downloaded August 8, 2019)
Deborah L. Feinstein, Dir., Bureau of Competition, Fed. Trade Comm'n, The Significance of Consent Orders in the Federal Trade Commission’s Competition Enforcement Efforts (Sept. 17, 2013)
Other materials
Jonathan M. Jacobson, Issues in Antitrust Consent Decrees, Presented to the Department of Justice Antitrust Division (Apr. 26, 2018)
William J. Donovan & Breck P. McAllister, Consent Decrees in the Enforcement of Federal Anti-Trust Laws, 46 Harv. L. Rev. 885 (1933) (for some early history of the use of consent decrees in antitrust cases)
Unit 6
Merger Antitrust Litigation
For additional supplemental materials, see 14. Merger Antitrust Litigation in AppliedAntitrust.com
Class 6
Thursday, September 12
Litigating merger antitrust cases
ABI/Grupo Modelo
Unit 6. Merger Antitrust Litigation (class notes)
Case study
The Course of Litigation: EnergySolutions’ Acquisition of Waste Control Specialists (Nov. 16, 2016)
ABI/Grupo Modelo
± Planet Money, Episode 438: Mavericks, Monopolies and Beer (Feb. 23, 2013) (ABI/Grupo Modelo)
± WSJ Explains, The Antitrust Lawsuit That Helped Make Modelo America’s Top Beer, WSJ.coml (Sept. 20, 2023) (video)
± Morning Brew, How Mexican Beer Conquered The American Beer Market (YouTube undated)
Unit 7
Hertz/Avis Budget/Dollar Thrifty
For additional supplemental materials, see 13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com
Class 7
Tuesday, September 17
The 2010 Hertz/Dollar Thrifty deal
There are no class notes for this class
Class 7 homework assignment
I encourage you to work in groups on this assignment
YouTube videos
Present value of a perpetuity (perpetual annuity)
Class 8
Thursday, September 19
Antitrust risk-shifting in the merger agreement
The bidding war with Avis
FTC review and settlement
Aftermath
Allocating Antitrust Risk in Merger Agreements (class notes)
Risk-shifting in Hertz/Dollar Thrifty
Risk-shifting in Hertz/Dollar Thrifty (optional class notes)
Risk-shifting generally
For a collection of now somewhat datedd antitrust-related provisions appearing in merger agreements, see Dale Collins, Sample Antitrust-Related Provisions in M&A Agreements, AntitrustUnpacked.com (July 2, 2018)
± Scott Sher, Brendan Coffman & Alexandra Keck, Risk Allocation in Merger Agreements in an Era of Increased Enforcement (Oct. 23, 2020)
± Gail F. Levine, Martha E. McGarry, Andrew J. Noreuil, Camila Panama & William H. Stallings, Mayer Brown, M&A Lawyers Adapt to New Era of Antitrust Enforcement: How Contractual Provisions Are Evolving(Jan. 2023).
± Richard Hall & Maurio A. Fiore, Cravath, Swaine & Moore LLP, U.S. Regulatory Merger Control Regimes Negotiating with Deal Delays in Mind (2023).
± Stephen Fraidin, Joel Mitnick, & Ross Steinberg, Cadwalader, Wickersham & Taft LLP, Hell or High Water Provisions in Merger Agreements: A Practical Approach (May 25, 2022)
± Quinn Emanuel Urquhart & Sullivan, LLP, “Hell Or High Water” Clauses in Merger & Acquisition Agreements (Aug. 19, 2022)
+ Dale Collins, Shearman & Sterling LLP, Antitrust Reverse Termination Fees—2020 Q3 Update (Dec. 28, 2020) (data set).
Anthem/Cigna contract litigation
In re Anthem-Cigna Merger Litig., No. CV 2017-0114-JTL, 2020 WL 5106556 (Del. Ch. Aug. 31, 2020) (unpublished), judgment entered, (Del. Ch. 2020), summarily aff'd sub nom. Cigna Corp. v. Anthem, Inc., 251 A.3d 1015 (Del. 2021) (unpublished)
The Hertz/Avis Budget/Dollar Thifty bidding war
Hertz/Avis Budget/Dollar Thrifty: The Bidding War for a collection on SEC materials and press releases on the bidding war for Dollar Thrifty between Hertz and Avis Budget.
Unit 8
Competition Economics
Class 9
Tuesday, September 24
Part 1. Demand, Costs, and
Profit-Maximization
Competition Economics Part 1 (class notes)
There are no reading materials for this class
Studies
± The Merger Working Group, International Competition Network, The Role of Economics and Economic Evidence in Merger Analysis (Apr. 2013).
YouTube videos
Revenue, Costs and Profit Part 1
Revenue, Costs and Profit Part 2
Revenue, Costs and Profit Part 3
Marginal Revolution University, The Demand Curve
Marginal Revolution University, A Deeper Look at the Demand Curve
Marginal Revolution University, The Demand Curve Shifts
Marginal Revenue for a Monopolist Facing Linear Demand
Finding a Revenue Function from a Linear Demand Function
Marginal Revolution University, The Supply Curve
Marginal Revolution University, A Deeper Look at the Supply Curve
Marginal Revolution University, The Supply Curve Shifts
Marginal Revolution University, The Equilibrium Price and Quantity
Marginal Revolution University, Exploring Equilibrium
Marginal Revolution University. Maximizing Profit Under Competition
Commentary
Dennis W. Carlton & Jeffrey M. Perloff, Modern Industrial Organization (4th ed. 2005).
A Marginal Revenue Problem Step-by-Step (by Step)
A Profit-Maximization Problem Step-by-Step (by Step)
± See also Dave Berry, Up in the Air on the Question of Gravity, Baltimore Sun, Mar. 16, 1997, at 3J
Really, really optional: If you want to understand derivatives and would like a quick introduction, see the following YouTube videos:
Derivatives... What? (on the theory of derivatives)
Derivatives... How? (on calculating the derivative--first 6.5 minutes is sufficient)
Class 10
Thursday, September 26
Part 2. Markets and Market Equilibrium
Substitutes, complements, and elasticities
Perfectly competitive markets
Perfectly monopolized markets
Imperfectly competitive markets
OPTIONAL
REVIEW
Friday, September 27
Optional economics review session
Unit 9
H&R Block/TaxACT
Class 11
Tuesday, October 1
Analysis of the district court opinion
Institutional setting
Market definition: (Brown Shoe factors)
Introduction to the hypothetical monopolist test
Class 12
Thursday, October 3
Analysis of the district court opinion
Market definition (critical loss tests)
Class 13
Tuesday, October 8
Analysis of the district court opinion
Market definition (diversion ratio recapture tests)
Class 14
Thursday, October 10
Analysis of the district court opinion
PNB presumption
Ease of entry defense
Coordinated effects
Elimination of a "maverick"
—
Tuesday, October 15
LEGISLATIVE MONDAY
NO CLASS
Class 15
Thursday, October 17
Analysis of the district court opinion
Recapture unilateral effects
Efficiencies defense
Unit 10
U.S. Sugar/Imperial Sugar
Class 16
Tuesday, October 22
Analysis of the district court opinion
Product markets
Geographic markets
Unit 11
Sysco/U.S. Foods
Class 17
Thursday, October 24
Analysis of the district court opinion
Cluster markets
Targeted customer markets
Auction theory of unilateral effects
Power buyer defense
Unit 12
Case Study Problem: Ice Cream Merger
Class 18
Tuesday, October 29
Review of the Class 18 homework assignment
Class 19
Tuesday, October 29
Continue analysis of Class 18 homework assignment
Unit 13
Staples/Office Depot
Class 20
Tuesday, November 5
Analysis of the district court opinion
Unit 14
Potential Competition Mergers
Class 21
Thursday, November 7
Milan/Perrigo
Medtronic/Covidien
Mallinckrodt (Questcor)/Novartis)
Steris/Synergy Health
Meta/Within
OPTIONAL
REVIEW
Friday, November 8
Unit 15
Vertical Mergers
Class 22
Tuesday, November 12
General Electric/Avio
Comcast/NBCUniversal
AT&T/Time Warner
Class 23
Thursday, November 14
AT&T/Time Warner (con't)
Class 24
Tuesday, November 19
AT&T/Time Warner (con't)
Coca-Cola/Coca-Cola Enterprises
Monday, November 20
GRADED HOMEWORK ASSIGNMENT DUE BY 8:00 PM
Unit 16
Graded Homework Assignment
Class 25
Thursday, November 21
Analysis of district court opinion
Unit 17
UnitedHealth/Change Healthcare
Class 26
Tuesday, November 26
Analysis of district court opinion
Final Review Session (optional)
OPTIONAL
REVIEW
Wednesday, December 4
OPTIONAL review session
FINAL EXAM
Friday, December 6 (8:30 AM) –
Friday, December 13 (6:30 PM)
[Times to be confirmed]
5-hour
Open book
Take home
Instructions for the 2023 exam
(Approved by the Registrar's Office)
NB: Some exams in the past have included two merger hypotheticals. This year the exam will contain only one hypothetical.