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The Fifth Circuit paused a lower court’s repeal of FTC merger rules, allowing them to stay in effect during appeal.
The Fifth Circuit has issued a temporary stay, preserving the Federal Trade Commission’s expanded Hart-Scott-Rodino premerger notification rules while an appeal proceeds.
The rules, which took effect in February 2025, significantly increased the information required for mergers, raising compliance costs and preparation time.
A Texas federal court had previously vacated the rules in February 2026, ruling the FTC failed to justify the added burden under the Administrative Procedure Act.
The stay allows businesses to continue using the updated HSR forms, maintaining regulatory continuity during the appellate review, which could result in the rules being upheld, modified, or overturned.
El Quinto Circuito suspendió la derogación de las reglas de fusión de la FTC por parte de un tribunal inferior, permitiendo que se mantuvieran en vigor durante el proceso de apelación.