A group of Democratic representatives sent a letter to House leadership on Tuesday pushing for a freeze on most mergers in the next coronavirus relief package.
Rep. David CicillineDavid Nicola CicillineHillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce Democratic lawmakers push for merger freeze in next coronavirus relief package Hillicon Valley: House committee calls on Amazon CEO Jeff Bezos to testify | Trump issues executive order to protect power grid against attacks | Department of Education investigates ties between University of Texas and China MORE (D-R.I.), chairman of the House Judiciary antitrust subcommittee, is leading the letter, which backers include Energy and Commerce consumer protection subcommittee chair Jan Schakowsky (D-Ill.), leadership member Rep. Jamie RaskinJamin (Jamie) Ben RaskinHillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce Democratic lawmakers push for merger freeze in next coronavirus relief package The ‘new normal’ takes shape on Capitol Hill MORE (D-Md.) and progressive lawmakers Reps. Alexandria Ocasio-CortezAlexandria Ocasio-CortezHillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce Democratic lawmakers push for merger freeze in next coronavirus relief package NY Democrats call for mortgage forgiveness in next coronavirus relief bill MORE (D-N.Y.), Pramila JayapalPramila JayapalHillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce Democratic lawmakers push for merger freeze in next coronavirus relief package Hillicon Valley: House committee calls on Amazon CEO Jeff Bezos to testify | Trump issues executive order to protect power grid against attacks | Department of Education investigates ties between University of Texas and China MORE (D-Wash.) and Mark PocanMark William PocanHillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce Democratic lawmakers push for merger freeze in next coronavirus relief package The ‘new normal’ takes shape on Capitol Hill MORE (D-Wis.).
“Powerful corporations and private equity firms are standing ready to exploit this crisis for unfair financial gain. We know that market consolidation produces higher prices and few choices for consumers, lower wages for workers, and contributes to grotesque levels of economic inequality,” Cicilline said in a statement.
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“To protect American consumers and workers, the next COVID-19 relief package should include a merger moratorium for transactions that do not involve firms that are truly failing and have exhausted all other options or are in bankruptcy proceedings.”
The letter to House Speaker Nancy PelosiNancy PelosiMcConnell pressed to expand coronavirus testing in Senate Pelosi says she believes Biden’s denial of assault claim: ‘I’m not going to answer this question again’ Hillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce MORE (D-Calif.) and House Minority Leader Kevin McCarthyKevin Owen McCarthyMcConnell pressed to expand coronavirus testing in Senate Hillicon Valley: Uber, Lyft sued in California | Ratcliffe refuses to say whether Russian interference favored Trump | Facebook takes down QAnon conspiracy accounts | Airbnb cuts workforce Democrats frustrated in coronavirus oversight efforts MORE (R-Calif.) calls for an exception for mergers involving the purchase of a severely distressed company that would otherwise likely go bankrupt.
Cicilline first proposed a merger moratorium during the pandemic last month.
A full moratorium on mergers would be unprecedented in the U.S., although the government has paused sector-specific mergers before.
Ocasio-Cortez and Sen. Elizabeth WarrenElizabeth WarrenSanders not urging Biden to pick Warren as running mate: report Pelosi says she believes Biden’s denial of assault claim: ‘I’m not going to answer this question again’ Overnight Defense: Esper fires back at Senate criticism | Joint Chiefs of Staff chair says evidence suggests coronavirus occurred naturally | DOD identifies casualty MORE (D-Mass.) are set to propose legislation detailing what such a freeze would look like.
The Pandemic Anti-Monopoly Act would freeze mergers that include companies that have more than $100 million in revenue, are run by hedge funds or private equity firms or that have exclusive patents impacted by the crisis, like key medical equipment.
Additionally, all mergers that must be reported to the Federal Trade Commission (FTC) under current law, which in 2020 is any valued over $94 million, would be frozen as well.
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