FTC and DOJ Signal Increased Scrutiny of Private Equity Firms

The United States Federal Trade Commission and the Department of Justice recently took actions that signal their intent to increase antitrust enforcement, particularly in the private equity sector.

• Last month, the FTC released a new policy statement noting its broadened view of the scope of its power under Section 5 of the FTC Act, signaling that it may find certain private equity rollups violate its interpretation.
• The FTC policy statement came on the heels of a DOJ announcement that it would be increasing the enforcement of Section 8 of the Clayton Act.
• These developments underscore the need for private equity companies to take particular care in observing U.S. competition laws, as there will be greater scrutiny of private equity firms.

In this client alert, Melissa Maxman, Ronald Wick, and Alisa Lu analyze what these actions mean for the future of antitrust enforcement in the private equity sector and provide insight into how PE firms can prepare themselves for continued additional scrutiny.