Sen. Elizabeth Warren of (D-Mass. and Rep. Alexandria Ocasio-Cortez (D-N.Y.) escalated pushback against M&A during the pandemic, the New York Times reported. The two introduced the Pandemic Anti-Monopoly Act, which would temporarily block many corporate acquisitions, including those by companies with more than $100 million in revenue and those owned by private equity or hedge funds. It would also direct the Federal Trade Commission to block deals that “pose a risk to the government’s ability to respond to a national emergency.” The legislation expands on a M&A moratorium proposed by Rep. David Cicilline (D-R.I.), who leads the House antitrust panel. It’s the latest shot across the bow of the deal industry, particularly private equity. Investment firms have argued that they shouldn’t be singled out for punishment during the pandemic, and they have successfully lobbied on issues like expanded lending programs from the Fed. The proposal is unlikely to go anywhere in the Senate, which is controlled by Republicans. Noah Joshua Phillips, an F.T.C. commissioner, recently argued that regulators were capable of carefully scrutinizing mergers during the crisis.
