Harmony Mappes Provides Insight to Indianapolis Business Journal About the FTC’s Noncompete Ban

The Indianapolis Business Journal reported on how the FTC’s new noncompete ban impacts mergers and acquisitions in the article “FTC’s new noncompete ban allows exceptions for mergers,” and reached out to business litigation partner and co-leader of the firm’s non-compete and trade secret practice, Harmony Mappes, for further insight.

She shared that based on what is known about the FTC rule, its impacts on mergers and acquisitions would be limited, adding that the upshot is that noncompete agreements would be allowed in that buying and selling context.

Mappes also noted that it likely could take months or even years for the courts to reach a final determination on the rule’s viability. If the rule as written survives legal challenges, Mappes said there is some potential for differing interpretations on what constitutes a bona fide sale or the definition of two independent parties in a sale. 

“'I’m sure down the road there will be disputes about what that means,” Mappes stated. 

In general, Mappes highlighted how the FTC rule has become a hot topic. “I think it has the potential to touch every industry. So many folks use non-competes or a restrictive covenant,” she said.