US Court Blocks Expanded Merger Disclosure Rule

Federal judge rules FTC exceeded authority with new requirements

Published on Feb. 13, 2026

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A federal judge in Texas has blocked a rule finalized in 2024 that expanded the amount of information companies have to provide when seeking merger reviews. The rule, which gave antitrust enforcers at the FTC and DOJ more data, was challenged by the U.S. Chamber of Commerce. The judge ruled the FTC failed to show the benefits of the rule would outweigh the costs.

Why it matters

This ruling is a setback for antitrust regulators who were seeking more transparency around mergers and acquisitions. It could make it harder for the government to detect potentially anti-competitive deals. The business community had pushed back against the new disclosure requirements, viewing them as an unnecessary burden.

The details

The rule, finalized in the final days of the Biden administration, required companies to provide more information when seeking merger approval. Some dealmakers rushed to file before the rule took effect to avoid the new requirements. The U.S. Chamber of Commerce, a major business lobby group, sued to block the rule. The judge ruled the FTC failed to justify the benefits of the rule outweighing the costs.

  • The rule was finalized in 2024.
  • Some companies filed for merger approval before the rule took effect in February 2025 to avoid the new requirements.
  • The U.S. Chamber of Commerce sued to block the rule last year.

The players

Federal Trade Commission (FTC)

The U.S. government agency responsible for promoting consumer protection and preventing anticompetitive business practices.

U.S. Chamber of Commerce

The largest business lobby group in the U.S., representing the interests of companies and industries.

Jeremy Kernodle

A U.S. District Judge in Tyler, Texas, appointed by former President Donald Trump.

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What they’re saying

“Though the FTC asserts that the rule will detect illegal mergers and save ‌agency resources, ‌the FTC fails to substantiate these ‌assertions.”

— Jeremy Kernodle, U.S. District Judge (Court ruling)

“We are pleased with the court's decision today rejecting the ‌Biden Administration's onerous merger ‌tax.”

— Daryl Joseffer, Executive Vice President, U.S. Chamber of Commerce Litigation Center (U.S. Chamber of Commerce)

What’s next

The FTC is reviewing the ruling and considering its options for appealing the decision.

The takeaway

This court ruling represents a victory for the business community, which had pushed back against the expanded merger disclosure requirements. It's a setback for antitrust regulators who were seeking more transparency around deals, which could make it harder to detect potentially anti-competitive mergers and acquisitions.