American Small Business Success Relies on Growth Options, Not Limitations: Statement on FTC/DOJ Proposed Merger Guidelines

For the more than 33.2 million startups or small businesses operating in the United States, success means the ability to explore various acquisition avenues that can enhance products and streamline market entry. Options empower our economy, and limiting choices for small businesses to explore a strategic acquisition or merger would limit possibilities for our nation’s innovators and consumers.

At ACT | The App Association, our members have always embraced the idea that once their innovative concepts materialize, acquisition becomes a viable path. This approach allows our members to continually forge ahead, developing new businesses and generating more job opportunities. Our members’ ability to combine their novel products with the resources, technical expertise, and market knowledge of acquiring companies has been immense, benefiting both the U.S. economy and consumers alike. Emphasizing mergers that lead to better products or services for consumers aligns with our objectives and supports a healthy competition policy framework, which is already reflected in the existing merger enforcement guidance.

With today’s announcement that the FTC-DOJ merger enforcement guidelines are under review, we maintain our position that any modifications should be undertaken with caution and in a narrowly-scoped manner. A blanket rewrite that diminishes our members’ potential for success through acquisitions would be counterproductive. Our members’ continued success relies on preserving the foundational role of thorough economic analysis in any merger review or enforcement process. Eliminating or downplaying the significance of economic analysis would introduce uncertainty and hinder our members’ ability to achieve success through pro-competitive mergers.

We believe that success for startups and small businesses can be optimally realized through strategic acquisitions and by maintaining a focus on thorough economic analysis during merger reviews. This approach not only benefits business owners but also promotes the interests of consumers and ensures a healthy and competitive market landscape.