In light of today’s announcement and the FTC release of its finalized rule on filing requirements under the Hart-Scott-Rodino (HSR) Act, ACT | The App Association’s President Morgan Reed issued the following statement:
“Today, we are encouraged by the FTC’s decision to listen to the significant concerns voiced by small businesses, making meaningful changes to its original proposal,” said Morgan Reed, President of ACT | The App Association. “After meeting with over 50 App Association members in May, the finalized rule on filing requirements reflects many of the concerns voiced in the room. We look forward to continuing to work with the FTC to ensure the concerns of small businesses are at the top of their minds and are reflected in rulemaking that supports entrepreneurship and competition.”
Notably, the final rule released today comes with the reinstatement of early termination letters, which restores much needed certainty around mergers and acquisitions, which the original proposal would have disrupted.
When the FTC first proposed updates to the Hart-Scott-Rodino (HSR) merger notification rule in September 2023, the App Association sent a letter to the Federal Trade Commission (FTC) highlighting how these changes fail to properly account for small business concerns. These changes to the FTC’s original proposal also follow meetings and advocacy from 50 members of the App Association, who shared their perspective and opposition to proposed updates during meetings in May 2024. The App Association will continue to work with its members and partners to advocate for M&A rules that reflect current economic realities and ensure the voices of small companies and app developers are at the table as part of FTC decision-making.
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About ACT | The App Association & Members
The App Association is a global trade association for small and medium-sized technology companies. Our members are entrepreneurs, innovators, and independent developers within the global app ecosystem that engage with verticals across every industry. We work with and for our members to promote a policy environment that rewards and inspires innovation while providing resources that help them raise capital, create jobs, and continue to build incredible technology.