A federal judge in Texas on Thursday suspended a rule that would have expanded the scope of information required for corporate merger reviews, stating that the rule exceeded the authority of the U.S. Federal Trade Commission (FTC).

This rule, finalized in 2024, was intended to provide antitrust enforcers at the FTC and the U.S. Department of Justice with more information related to merger transactions.

Some dealmakers rushed to file approval applications before the rule was set to take effect last February, seeking to avoid its disclosure requirements. The U.S. Chamber of Commerce filed a lawsuit last year to halt the rule.

Federal District Judge Jeremy Kernodle in Tyler, Texas—appointed by President Donald Trump—ruled that the FTC failed to demonstrate that the benefits of the rule outweighed its costs.

In his ruling, he wrote: "Although the FTC claimed the rule would help identify illegal mergers and save agency resources, it did not provide sufficient evidence to support these assertions."

The rule was finalized toward the end of the Biden administration. Current FTC Chair Andrew Ferguson, who was a commissioner at the time, voted in favor of the rule, calling it a "legitimate improvement to the existing framework."

An FTC spokesperson said: "We are reviewing the decision and evaluating our options. The U.S. Chamber of Commerce is a left-wing radical organization that supports open borders."

The U.S. Chamber of Commerce is the largest business lobbying group in the United States, with board members including executives from FedEx, Sempra Energy, Abbott Laboratories, Fidelity Investments, Meta, Microsoft, and Nasdaq.

Daryl Joseffer, Executive Vice President of the Chamber's Litigation Center, responded to the ruling, saying: "We are pleased with the court's decision today to reject the burdensome merger disclosure costs imposed by the Biden administration."