The case is viewed as a litmus test for vertical mergers, in which a company buys a business in a similar industry, and the fight became spicier on Monday when Illumina accused the F.T.C. of operating unconstitutionally.
The F.T.C. has ordered Illumina to divest Grail. But Illumina says the agency is applying a new standard to vertical mergers and exercising power that goes far beyond what Congress intended for unelected administrators. The Fifth Circuit Court of Appeals will hear the case and might be inclined to agree, based on its record in two cases last year.
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The appeals court sided with payday lenders in a case challenging the constitutionality of the C.F.P.B.; the Supreme Court will review it next term.
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The appeals court agreed with a hedge fund manager charged by the S.E.C. for violating securities laws who said the agency’s enforcement power was unconstitutional; the government is petitioning for review.
A decision could come quickly. The Fifth Circuit recently granted Illumina’s request for expedited review, and a hearing is set for August. The loser will probably appeal. But the Supreme Court has made some decisions that suggest it is not so friendly to regulators, either.
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In April, the justices ruled unanimously to streamline federal court challenges to the constitutionality of agencies, making it easier to sue administrators.
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The high court last year found that the E.P.A. exceeded its congressional authority with a rule on emissions.
Some lawyers think Illumina will eventually end up before the Supreme Court, which could rule in the company’s favor. But everything depends on timing: Illumina is also facing opposition in Europe and the company has said that it would sell Grail if it loses on either continent. A decision on Illumina’s appeal of a European Commission move to block the deal could come late this year, which may be why the F.T.C. has been asking the Fifth Circuit to slow down.
A big hotelier writes off San Francisco
Park Hotels & Resorts, operator of two of the most prominent hotels in San Francisco, is handing in the keys on the properties — and, in essence, giving up on a city that has fallen on hard times.
Park Hotel stopped making payments on a $725 million loan tied to the Hilton Union Square and Parc 55 San Francisco, the real estate investment trust said on Monday. The hotels, a few blocks from the once-bustling Moscone Center conference hall, have a combined total of nearly 3,000 rooms.
A slowing economy and a remote-work thunderclap have emptied offices across the country, with some warning of a ticking time bomb in the commercial real estate market. Slammed by a wave of tech layoffs and a steep slowdown in Moscone’s conference calendar, downtown San Francisco has been hit hard.
“Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges,” said the Park C.E.O., Thomas Baltimore, Jr.