Think Before Sharing Due Diligence Info With A Competitor
By Kathy Osborn, Anna Konradi and Justin Olson (April 3, 2018, 12:50 PM EDT) -- Competitors exploring mergers or acquisitions may find themselves under a microscope regarding what information they exchange in the process. On March 20, 2018, the Federal Trade Commission reaffirmed its long-standing commitment to monitoring competitors who exchange sensitive competitive information — like price projections, customer lists or future product offerings — during premerger negotiations and due diligence. Improper information exchange can occur as "standalone conduct or during the merger process," the FTC explained in its recent web posting. The FTC cited past enforcement actions from prior administrations, illustrating instances where information exchanges lacked a pro-competitive and "legitimate business purpose" or were not properly firewalled — signaling continuity of the agency's enforcement priorities....
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