The U.S. Department of Justice (DoJ) has announced a new approach to streamline its merger review process, aiming to reduce the investigative burden on businesses amid a surge in corporate dealmaking. The revised policy focuses on narrowing the scope of antitrust probes to key competition concerns, potentially allowing certain mergers to clear regulatory scrutiny more quickly.
Under the updated procedure, the DoJ’s antitrust division will limit the extent of its investigations by targeting requests for information to priority areas that present clear risks to competition. Rather than conducting expansive fact-finding missions that can last up to a year, the department plans to decide whether to close or expand an inquiry within approximately five weeks following receipt of requested documents. This change is intended to make more efficient use of government resources while preserving the integrity of antitrust enforcement.
The new framework marks a return to practices seen in earlier administrations, contrasting with the broader and more intensive investigations favored under the Biden administration. The shift aligns with policies pursued during former President Donald Trump’s tenure, which emphasized a more deal-friendly approach and settlements rather than lengthy legal battles. This is exemplified by recent DoJ actions such as settling a lawsuit against Live Nation, the parent company of Ticketmaster, shortly after the commencement of its antitrust trial, and approving the $110 billion merger of Warner Bros Discovery and Paramount Skydance. However, the latter deal has faced legal challenges by several states, including California, resulting in a temporary judicial pause.
Associate Attorney General Stanley Woodward characterized the adjustments as a means to “eliminate bureaucratic burdens while preserving the integrity” of the review process. He noted that the changes would help the department focus its review on core competitive risks, allow quicker and more efficient examination of transactions, and better safeguard a competitive marketplace while maintaining an environment conducive to business activity.
The announcement comes amid a record-breaking first half of the year for global mergers and acquisitions, with activity reaching $2.8 trillion. Many companies that had previously been hesitant to engage in deals are now seizing opportunities in a regulatory environment perceived as more permissive.
Leadership changes within the DoJ’s antitrust division have accompanied this policy shift. Following the departure of acting head Omeed Assefi last month, Woodward has taken the helm. President Trump also recently nominated Adam Candeub, currently general counsel at the Federal Communications Commission, to formally lead the antitrust division, though his Senate confirmation is expected to take several months. This appointment follows the removal of former antitrust chief Gail Slater, who had advocated continuing the crackdown on corporate consolidation initiated under the Biden administration.
Overall, the revised merger review process underscores the department’s intention to strike a balance between rigorous antitrust enforcement and facilitating business transactions in a competitive economy. While not every deal will qualify for the expedited process, the targeted approach aims to prioritize resources on transactions most likely to harm market competition.