FTC Consent Decrees Underscore Skepticism and Scrutiny of Private Equity Firms
July 5, 2022
Twice in the past month, the Federal Trade Commission (FTC) unanimously announced consent decrees that are a strong signal of the current Commission’s intent to investigate private equity transactions aggressively.
- The consent decrees allow the private equity fund JAB Consumer Partners SCA SICAR's National Veterinary Associates to close two recent deals with some divestitures but also impose a series of strict prior notice requirements that are unprecedented in their breadth.
- The announcements come a month after the confirmation of a fifth commissioner that gave the Democrats a 3-2 majority on the FTC.
- As long as Democrats control the majority, private equity firms should be prepared for additional scrutiny and be cognizant of other competition issues that may impact them.