Texas Court Blocks FTC's New Merger Form as States Challenge DOJ Deal

*TL;DR A Texas district court declared the FTC’s 2025 Hart‑Scott‑Rodino (HSR) merger notification form unlawful, forcing regulators back to the older form as dozens of states press the DOJ over a contested tech merger settlement.*

Context The HSR Act requires companies planning large acquisitions to file detailed information with antitrust agencies. In 2025 the FTC expanded the form, adding data fields that increased filing costs and time. The change sparked a legal battle that reached the Fifth Circuit Court of Appeals.

Key Facts - On February 12, 2026 a federal court in Texas ruled the new HSR form violated the Administrative Procedure Act, which governs how agencies create regulations. The decision was upheld when the Fifth Circuit denied the FTC a pause on the ruling. - With the injunction in place, the FTC and the Department of Justice (DOJ) must revert to the legacy HSR form while they consider another rulemaking round. - FTC Chair Lina K. Ferguson announced the agency will now negotiate settlements, a shift from the Biden administration’s approach that favored court‑based resolutions. Ferguson criticized “fake settlements” that require extensive monitoring and said the FTC will demand full divestitures for high‑risk industries. - The FTC also plans to seek permanent injunctions—court orders that permanently block a merger—rather than the traditional two‑step process of a preliminary injunction followed by an administrative hearing. This raises the evidentiary bar and could lengthen litigation. - Twelve states and the District of Columbia are still contesting the DOJ’s settlement that cleared Hewlett Packard Enterprise’s $7.4 billion purchase of Juniper Networks. The challenge follows allegations that lobbyists improperly influenced the settlement. - Recent DOJ actions, including a swift approval of the $1.6 billion Compass‑Anywhere merger, have drawn scrutiny for possible political interference and the resignation of senior antitrust officials.

What It Means The Texas ruling curtails the FTC’s attempt to modernize merger oversight, at least temporarily restoring a simpler filing process. However, the agency’s push for more aggressive settlement negotiations and permanent injunctions signals a tougher stance on future deals. Simultaneously, state‑level challenges to the HPE‑Juniper settlement highlight growing frustration with perceived gaps in federal enforcement. Watch for the Fifth Circuit’s final decision on the new HSR form and any new rulemaking proposals that could reshape merger review across the United States.