US Senator Elizabeth Warren and Rep. Mondale Jones proposed an American Economic Freedom Project, issued a statement on the 2022 Prohibition of Anti-Competitive Mergers Act, aiming to promote the prohibition of large-scale mergers and acquisitions. Legislation for tech company mergers.
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After the passage of the Prohibiting Anticompetitive Mergers Act (hereinafter referred to as “PAMA”), all mergers and acquisitions that exceed $5 billion in size or may result in excessive market share will be directly and automatically blocked and regarded as illegal mergers.
“The Anti-Competitive Mergers Prohibition Act of 2022 directly targets the current merger frenzy that is fueling the concentration of wealth and power in the United States,” said Sarah Miller, executive director of the American Economic Freedom Project.
“This legislation prioritizes the needs of working people, honest businesses and consumers.”, expressly prohibits large mergers, and provides antitrust enforcers with an important tool to block and unwind bad deals.
It provides important support to the Federal Trade Commission and the Department of Justice as these agencies grapple with the current merger boom.”
If the PAMA goes through, Amazon’s merger with MGM ($8.4 billion), Microsoft’s deal with Activision Blizzard ($68.7 billion), and Google’s acquisition of Mandiant ($5.4 billion) would all be automatically barred. That is to say, strong alliances between large companies are no longer possible, but cooperation with small companies is not affected.
