Antitrust Division Supports Modernizing Merger Filing Exemptions For Certain Investments

On Monday, September 21, Assistant Attorney General Makan Delrahim concurred in the Federal Trade Commission’s (FTC) Federal Register publication of a Notice of Proposed Rulemaking (NPRM) to revise the premerger notification rules (the Rules) that implement the Hart-Scott-Rodino Antitrust Improvements Act (HSR).

The NPRM proposes to create a new reporting exemption for certain de minimis investments of 10% or less.  The proposed amendments in the NPRM also change the definition of “person,” and make explanatory and ministerial changes to the HSR Rules as well as the HSR Form and Instructions to effect the proposed amendments.  In another Advance Notice of Proposed Rulemaking (ANPRM), also supported by the Antitrust Division, the FTC seeks to gather information, related to seven topics, that will help to determine the path for future amendments to the HSR Rules.

“One of my goals as Assistant Attorney General has been to right-size the HSR regime to better account for how the economy has changed in the decades since the HSR regime was first enacted, including changes in the investment landscape and investor behavior,” said Assistant Attorney General Delrahim.  “I am pleased to be working with the FTC towards this goal.  In particular, I have been an advocate for the creation of a new exemption for certain de minimis investments of 10% or less in order to address the regulatory burdens of an overbroad HSR requirement for certain minority investments that do not raise competition concerns.”

A comment period will follow publication in the Federal Register, and the Antitrust Division encourages all interested stakeholders to submit comments on both the NPRM and the ANPRM.  The Antitrust Division is particularly interested in comments on the following features of the NPRM, which will greatly benefit both the Antitrust Division and the FTC as they work collaboratively towards a final rule:

  • The Director/Officer Carve-Out: Should this carve-out be removed, given that the new exemption already has carve-outs for competitors and common ownership?  How does it meaningfully increase the likelihood of receiving filings that have the potential to raise competition concerns?
  • The Vendor/Vendee Carve-Out: Should this carve-out be removed?  Does it meaningfully increase the likelihood of receiving filings that have the potential to raise competition concerns?

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    What GAO Found Personnel in the Department of Defense (DOD)—including service members and civilian employees—may be eligible for federal student loan forgiveness through the Public Service Loan Forgiveness (PSLF) program if they remain in public service employment for 10 years while making 120 qualifying loan payments, among other requirements. As of January 2020, Department of Education (Education) data show that 287 DOD borrowers received loan forgiveness, while 5,180 DOD borrowers (about 94 percent) were denied (see figure). The most common reasons for the denials were not enough qualifying payments and missing information on the form. GAO previously reported in September 2019 an overall denial rate of 99 percent for all PSLF applications submitted by borrowers. More information from DOD could help potential applicants be aware of all eligibility requirements. Number of Department of Defense (DOD) Personnel Approved or Denied for Public Service Loan Forgiveness (PSLF), as of January 31, 2020 Note: The “Civilian” categories include all civilian employees within DOD, including the military services. As its administrator, Education has specialized knowledge about the PSLF program but has not shared complete information with DOD. Education officials have not shared with DOD summary information about its personnel who have taken steps to pursue PSLF or service members who may be eligible. Education officials also stated they have not shared the benefits of using the PSLF program together with DOD's student loan repayment program. Education officials have also not updated the student loan guide for service members with specific information on PSLF. Education could take additional steps to improve information sharing about PSLF with DOD personnel. DOD officials expressed interest in obtaining more program information. Collaboration among the departments and updated program information could help DOD officials and its personnel to take full advantage of PSLF. DOD does not widely use the PSLF program for recruitment and retention to promote readiness despite facing challenges in certain specialty career fields. Some DOD officials we interviewed stated that they preferred to use other DOD benefits and incentives that DOD directly controls, such as bonuses or DOD's student loan repayment program. DOD could enhance its recruitment and retention efforts to promote readiness with department-wide and service-specific guidance about how the PSLF program could be used as a tool for such efforts. Why GAO Did This Study At a time when student loan debt continues to mount for many, the PSLF program—established in 2007 and administered by Education—is intended to encourage individuals to pursue careers in public service. Senate Report 116-48 included a provision for GAO to study the effectiveness of the PSLF program at promoting military and civilian recruitment and retention as well as military readiness. GAO's report assesses the extent to which (1) DOD personnel pursue and receive loan forgiveness through the PSLF program, (2) Education has shared information with DOD officials and its military and civilian personnel about the program, and (3) DOD uses the program for recruitment and retention to promote readiness. GAO analyzed student loan data from Education and the PSLF servicer from the beginning of the program through January 2020; reviewed relevant laws, documents, and other information related to PSLF, benefits, recruitment, retention, and readiness; and interviewed DOD and Education officials.
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    In Crime Control and Security News
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  • Veterans Health Care: Agency Efforts to Provide and Study Prosthetics for Small but Growing Female Veteran Population
    In U.S GAO News
    The Department of Veterans Affairs' (VA) Veterans Health Administration (VHA) provides veterans with prosthetic services to assist with their mobility, vision, and hearing needs. The proportion of prosthetics VHA provided to female veterans has been small compared to the share provided to male veterans. However, in fiscal years 2015 to 2019, this proportion grew from 6.8 percent to 7.9 percent and accounted for about $889.1 million of the $15.4 billion total cost of prosthetics. Artificial limbs comprised a relatively small number of the total prosthetics VHA provided to veterans in fiscal years 2015 to 2019; however, veterans who use artificial limbs have complex needs and are significant users of health care services. VHA provided prosthetic services to a small but growing female veteran amputee population (almost 3 percent of veteran amputees in fiscal year 2019), who were generally younger than male veteran amputees. VHA has established an individualized patient care approach in its Amputation System of Care that seeks to address the prosthetic needs of each veteran, including accounting for gender-specific factors. VHA officials said that using a standardized, multidisciplinary approach across VA medical facilities also helps them incorporate the concerns and preferences of female veterans. For example, veterans are provided care by a team that includes a physician, therapist, prosthetist (clinician who helps evaluate prosthetic needs and then designs, fabricates, fits, and adjusts artificial limbs), and other providers as needed. Female veteran amputees GAO spoke with at one VA medical facility said they were satisfied with their VHA care. They also noted a lack of commercially available prosthetic options that VHA providers can use to meet women's needs. Examples of Female Veterans' Artificial Limb Prosthetics Women are generally studied less than their male counterparts in prosthetic and amputee rehabilitation research. VHA designated prosthetics for female veterans a national research priority in 2017, and has funded eight related studies as of May 2020: four pertain to lower limb amputation, three pertain to upper limb amputation, and one pertains to wheelchairs. VHA officials noted the importance of this research priority and the ongoing challenge of recruiting study participants due to the small female veteran population. VHA researchers said they employ various tactics to address this challenge, such as using multi-site studies and recruiting participants from the non-veteran population. Women are the fastest growing veteran subpopulation, with the number of female veterans using VHA health care services increasing 29 percent from 2014 to 2019. Female veterans accounted for an estimated 10 percent of the total veteran population in fiscal year 2019. They are eligible to receive a full range of VHA health care services, including obtaining prosthetics. House Report 115-188 included a provision for GAO to review VHA's prosthetic services for female veterans. This report examines 1) trends in prosthetics provided by VHA to female veterans; 2) characteristics of the female veteran population with limb loss and how VHA provides prosthetic services to these veterans through its Amputation System of Care; and 3) VHA's research efforts and the challenges that exist in studying prosthetics for female veterans with limb loss. GAO analyzed VHA documents, as well as data from fiscal years 2015 to 2019 on prosthetics and veterans with amputations. GAO interviewed agency officials from VHA central office and officials and female veteran amputees at two VA medical facilities selected for expertise in amputation care and prosthetics research activities. In addition, GAO interviewed VHA researchers conducting studies on prosthetics for female veterans. GAO provided a draft of this report to VA. VA provided general and technical comments, which were incorporated as appropriate. For more information, contact Jessica Farb at (202) 512-7114 or farbj@gao.gov.
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  • Sargeant Marine Inc. Pleads Guilty and Agrees to Pay $16.6 Million to Resolve Charges Related to Foreign Bribery Schemes in Brazil, Venezuela, and Ecuador
    In Crime News
    Sargeant Marine Inc., an asphalt company formerly based in Boca Raton, Florida, pleaded guilty today to conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a criminal fine of $16.6 million to resolve charges stemming from a scheme to pay bribes to foreign officials in three South American countries.
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    In Crime Control and Security News
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    In Crime Control and Security News
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    In Human Health, Resources and Services
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  • Justice Department Awards $144 Million to Improve Services for Crime Victims
    In Crime News
    The Department of Justice today awarded grants totaling over $144 million to enhance services for victims of crime across the United States.
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