diff --git a/src/main/java/com/android/tools/r8/horizontalclassmerging/SyntheticArgumentClass.java b/src/main/java/com/android/tools/r8/horizontalclassmerging/SyntheticArgumentClass.java
index 3ac16de..ca0b752 100644
--- a/src/main/java/com/android/tools/r8/horizontalclassmerging/SyntheticArgumentClass.java
+++ b/src/main/java/com/android/tools/r8/horizontalclassmerging/SyntheticArgumentClass.java
@@ -30,7 +30,6 @@
  * <p>This class generates a synthetic class in the package of the first class to be merged.
  */
 public class SyntheticArgumentClass {
-  public static final String SYNTHETIC_CLASS_SUFFIX = "$r8$HorizontalClassMergingArgument";
 
   private final List<DexType> syntheticClassTypes;
 
diff --git a/src/main/java/com/android/tools/r8/synthesis/SyntheticNaming.java b/src/main/java/com/android/tools/r8/synthesis/SyntheticNaming.java
index ea95117..7148738 100644
--- a/src/main/java/com/android/tools/r8/synthesis/SyntheticNaming.java
+++ b/src/main/java/com/android/tools/r8/synthesis/SyntheticNaming.java
@@ -27,9 +27,9 @@
     COMPANION_CLASS("CompanionClass", false),
     LAMBDA("Lambda", false),
     INIT_TYPE_ARGUMENT("-IA", false, true),
-    HORIZONTAL_INIT_TYPE_ARGUMENT_1("$IA$1", false, true),
-    HORIZONTAL_INIT_TYPE_ARGUMENT_2("$IA$2", false, true),
-    HORIZONTAL_INIT_TYPE_ARGUMENT_3("$IA$3", false, true),
+    HORIZONTAL_INIT_TYPE_ARGUMENT_1(SYNTHETIC_CLASS_SEPARATOR + "IA$1", false, true),
+    HORIZONTAL_INIT_TYPE_ARGUMENT_2(SYNTHETIC_CLASS_SEPARATOR + "IA$2", false, true),
+    HORIZONTAL_INIT_TYPE_ARGUMENT_3(SYNTHETIC_CLASS_SEPARATOR + "IA$3", false, true),
     // Method synthetics.
     BACKPORT("Backport", true),
     STATIC_INTERFACE_CALL("StaticInterfaceCall", true),
diff --git a/src/main/java/com/android/tools/r8/utils/InternalOptions.java b/src/main/java/com/android/tools/r8/utils/InternalOptions.java
index 9c2516c..54bbbcc 100644
--- a/src/main/java/com/android/tools/r8/utils/InternalOptions.java
+++ b/src/main/java/com/android/tools/r8/utils/InternalOptions.java
@@ -1158,7 +1158,7 @@
 
     public boolean enable = true;
     public boolean enableConstructorMerging = true;
-    public boolean enableJavaLambdaMerging = false;
+    public boolean enableJavaLambdaMerging = true;
 
     public int maxGroupSize = 30;
 
diff --git a/src/test/examplesAndroidO/lambdadesugaring/LambdaDesugaring.java b/src/test/examplesAndroidO/lambdadesugaring/LambdaDesugaring.java
index 627d255..25c0af0 100644
--- a/src/test/examplesAndroidO/lambdadesugaring/LambdaDesugaring.java
+++ b/src/test/examplesAndroidO/lambdadesugaring/LambdaDesugaring.java
@@ -471,15 +471,6 @@
     static final InstanceAndClassChecks INSTANCE = new InstanceAndClassChecks();
 
     static void test() {
-      assertSameInstance(
-          InstanceAndClassChecks::staticProvider,
-          InstanceAndClassChecks::staticProvider,
-          "Instances must be same");
-      assertSameInstance(
-          InstanceAndClassChecks::staticProvider,
-          statelessLambda(),
-          "Instances must be same");
-
       assertDifferentInstance(
           INSTANCE::instanceProvider,
           INSTANCE::instanceProvider,
diff --git a/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java b/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java
index 7f2c924..488480c 100644
--- a/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java
+++ b/src/test/java/com/android/tools/r8/R8RunExamplesAndroidOTest.java
@@ -108,14 +108,14 @@
         .withOptionConsumer(opts -> opts.enableClassInlining = false)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 102, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 18, "lambdadesugaring"))
         .run();
 
     test("lambdadesugaring", "lambdadesugaring", "LambdaDesugaring")
         .withMinApiLevel(ToolHelper.getMinApiLevelForDexVmNoHigherThan(AndroidApiLevel.K))
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 5, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 3, "lambdadesugaring"))
         .run();
   }
 
@@ -147,14 +147,14 @@
         .withOptionConsumer(opts -> opts.enableClassInlining = false)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 102, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 18, "lambdadesugaring"))
         .run();
 
     test("lambdadesugaring", "lambdadesugaring", "LambdaDesugaring")
         .withMinApiLevel(AndroidApiLevel.N)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 5, "lambdadesugaring"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 3, "lambdadesugaring"))
         .run();
   }
 
@@ -168,7 +168,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 37, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 7, "lambdadesugaringnplus"))
         .run();
 
     test("lambdadesugaringnplus", "lambdadesugaringnplus", "LambdasWithStaticAndDefaultMethods")
@@ -191,7 +191,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 36, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 6, "lambdadesugaringnplus"))
         .run();
 
     test("lambdadesugaringnplus", "lambdadesugaringnplus", "LambdasWithStaticAndDefaultMethods")
@@ -200,7 +200,7 @@
         .withBuilderTransformation(ToolHelper::allowTestProguardOptions)
         .withBuilderTransformation(
             b -> b.addProguardConfiguration(PROGUARD_OPTIONS_N_PLUS, Origin.unknown()))
-        .withDexCheck(inspector -> checkLambdaCount(inspector, 0, "lambdadesugaringnplus"))
+        .withDexCheck(inspector -> checkLambdaCount(inspector, 3, "lambdadesugaringnplus"))
         .run();
   }
 
diff --git a/src/test/java/com/android/tools/r8/classmerging/horizontal/JavaLambdaMergingTest.java b/src/test/java/com/android/tools/r8/classmerging/horizontal/JavaLambdaMergingTest.java
index 394c381..f7aacb5 100644
--- a/src/test/java/com/android/tools/r8/classmerging/horizontal/JavaLambdaMergingTest.java
+++ b/src/test/java/com/android/tools/r8/classmerging/horizontal/JavaLambdaMergingTest.java
@@ -5,7 +5,6 @@
 package com.android.tools.r8.classmerging.horizontal;
 
 import static org.junit.Assert.assertEquals;
-import static org.junit.Assert.assertFalse;
 import static org.junit.Assert.assertTrue;
 
 import com.android.tools.r8.TestParameters;
@@ -29,11 +28,8 @@
         .addInnerClasses(getClass())
         .addKeepMainRule(Main.class)
         .addOptionsModification(
-            options -> {
-              options.horizontalClassMergerOptions().enableIf(enableHorizontalClassMerging);
-              assertFalse(options.horizontalClassMergerOptions().isJavaLambdaMergingEnabled());
-              options.horizontalClassMergerOptions().enableJavaLambdaMerging();
-            })
+            options ->
+                options.horizontalClassMergerOptions().enableIf(enableHorizontalClassMerging))
         .addHorizontallyMergedClassesInspectorIf(
             enableHorizontalClassMerging && parameters.isDexRuntime(),
             inspector -> {
diff --git a/src/test/java/com/android/tools/r8/desugar/lambdas/LambdaEqualityTest.java b/src/test/java/com/android/tools/r8/desugar/lambdas/LambdaEqualityTest.java
index 90c8009..bf4f43f 100644
--- a/src/test/java/com/android/tools/r8/desugar/lambdas/LambdaEqualityTest.java
+++ b/src/test/java/com/android/tools/r8/desugar/lambdas/LambdaEqualityTest.java
@@ -67,8 +67,8 @@
           "false",
           "Empty lambda",
           "true", // R8 will eliminate the call to the impl method thus making lambdas equal.
-          "true",
-          "true");
+          "false",
+          "false");
 
   private final TestParameters parameters;