Hart-Scott-Rodino Antitrust Improvements Act Law and Legal Definition
The Hart-Scott-Rodino Antitrust Improvements Act (HSR Act) of 1976 is a U.S. federal statute. The Act is a set of amendments to the antitrust laws in the U.S. The Act provides that any company intending to acquire or merge with another company should make an application about its intention to the Federal trade Commission and to the Assistant Attorney General in charge of the Antitrust Division of the Department of Justice. The application need to be submitted thirty days prior to consummation of such a transaction.
The object of the Act is to ensure that transactions did not close when there was a likelihood that it would result in a reduction in competition.
The Act made an impact on the way transactions were reviewed. The Act provides that the Department of Justice (DOJ) and Federal Trade Commission (FTC) be given an opportunity to review transactions for antitrust considerations prior to their consummation.
The Act provides that a transaction will not end unless the specified waiting period has expired, and the DOJ and FTC did not object the transaction.
The Act provides for two principal test to ensure that if a transaction will come under the HAS Act. They are:
1. the size of parties test; and
2. the size of transaction test.
The Act permits the states to sue any company in a federal court for monetary damages under the antitrust laws.