diff --git a/src/main/java/com/android/tools/r8/horizontalclassmerging/HorizontalClassMerger.java b/src/main/java/com/android/tools/r8/horizontalclassmerging/HorizontalClassMerger.java
index adc4f12..50ceee2 100644
--- a/src/main/java/com/android/tools/r8/horizontalclassmerging/HorizontalClassMerger.java
+++ b/src/main/java/com/android/tools/r8/horizontalclassmerging/HorizontalClassMerger.java
@@ -7,6 +7,7 @@
 import com.android.tools.r8.graph.AppView;
 import com.android.tools.r8.graph.DexProgramClass;
 import com.android.tools.r8.graph.DirectMappedDexApplication;
+import com.android.tools.r8.horizontalclassmerging.policies.DontMergeIntoLessVisible;
 import com.android.tools.r8.horizontalclassmerging.policies.DontMergeSynchronizedClasses;
 import com.android.tools.r8.horizontalclassmerging.policies.NoAbstractClasses;
 import com.android.tools.r8.horizontalclassmerging.policies.NoAnnotations;
@@ -71,7 +72,10 @@
             new PreventChangingVisibility(),
             new SameFeatureSplit(appView),
             new RespectPackageBoundaries(appView),
-            new DontMergeSynchronizedClasses(appView)
+            new DontMergeSynchronizedClasses(appView),
+            // TODO(b/166577694): no policies should be run after this policy, as it would
+            // potentially break tests
+            new DontMergeIntoLessVisible()
             // TODO: add policies
             );
 
diff --git a/src/main/java/com/android/tools/r8/horizontalclassmerging/policies/DontMergeIntoLessVisible.java b/src/main/java/com/android/tools/r8/horizontalclassmerging/policies/DontMergeIntoLessVisible.java
new file mode 100644
index 0000000..e579310
--- /dev/null
+++ b/src/main/java/com/android/tools/r8/horizontalclassmerging/policies/DontMergeIntoLessVisible.java
@@ -0,0 +1,33 @@
+// Copyright (c) 2020, the R8 project authors. Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+package com.android.tools.r8.horizontalclassmerging.policies;
+
+import com.android.tools.r8.graph.DexProgramClass;
+import com.android.tools.r8.horizontalclassmerging.MultiClassPolicy;
+import java.util.Collection;
+import java.util.Collections;
+import java.util.Iterator;
+import java.util.LinkedList;
+import java.util.List;
+
+public class DontMergeIntoLessVisible extends MultiClassPolicy {
+  @Override
+  public Collection<Collection<DexProgramClass>> apply(Collection<DexProgramClass> group) {
+    Iterator<DexProgramClass> iterator = group.iterator();
+    while (iterator.hasNext()) {
+      DexProgramClass clazz = iterator.next();
+      if (clazz.isPublic()) {
+        iterator.remove();
+        List<DexProgramClass> newGroup = new LinkedList<>();
+        newGroup.add(clazz);
+        newGroup.addAll(group);
+        group = newGroup;
+        break;
+      }
+    }
+
+    return Collections.singletonList(group);
+  }
+}
diff --git a/src/test/java/com/android/tools/r8/classmerging/horizontal/MergePackagePrivateWithPublicClassTest.java b/src/test/java/com/android/tools/r8/classmerging/horizontal/MergePackagePrivateWithPublicClassTest.java
new file mode 100644
index 0000000..a1c8faa
--- /dev/null
+++ b/src/test/java/com/android/tools/r8/classmerging/horizontal/MergePackagePrivateWithPublicClassTest.java
@@ -0,0 +1,51 @@
+// Copyright (c) 2020, the R8 project authors. Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+package com.android.tools.r8.classmerging.horizontal;
+
+import static com.android.tools.r8.utils.codeinspector.Matchers.isPresent;
+import static com.android.tools.r8.utils.codeinspector.Matchers.notIf;
+import static org.hamcrest.MatcherAssert.assertThat;
+
+import com.android.tools.r8.TestParameters;
+import com.android.tools.r8.classmerging.horizontal.testclasses.PackagePrivateClassRunner;
+import org.junit.Test;
+
+public class MergePackagePrivateWithPublicClassTest extends HorizontalClassMergingTestBase {
+
+  public MergePackagePrivateWithPublicClassTest(
+      TestParameters parameters, boolean enableHorizontalClassMerging) {
+    super(parameters, enableHorizontalClassMerging);
+  }
+
+  @Test
+  public void testR8() throws Exception {
+    testForR8(parameters.getBackend())
+        .addInnerClasses(getClass())
+        .addProgramClasses(
+            PackagePrivateClassRunner.class, PackagePrivateClassRunner.getPrivateClass())
+        .addKeepMainRule(Main.class)
+        .addOptionsModification(
+            options -> options.enableHorizontalClassMerging = enableHorizontalClassMerging)
+        .enableInliningAnnotations()
+        .enableNeverClassInliningAnnotations()
+        .setMinApi(parameters.getApiLevel())
+        .compile()
+        .run(parameters.getRuntime(), Main.class)
+        .assertSuccessWithOutputLines("package private")
+        .inspect(
+            codeInspector -> {
+              assertThat(codeInspector.clazz(PackagePrivateClassRunner.class), isPresent());
+              assertThat(
+                  codeInspector.clazz(PackagePrivateClassRunner.getPrivateClass()),
+                  notIf(isPresent(), enableHorizontalClassMerging));
+            });
+  }
+
+  public static class Main {
+    public static void main(String[] args) {
+      new PackagePrivateClassRunner().run();
+    }
+  }
+}
diff --git a/src/test/java/com/android/tools/r8/classmerging/horizontal/testclasses/PackagePrivateClass.java b/src/test/java/com/android/tools/r8/classmerging/horizontal/testclasses/PackagePrivateClass.java
new file mode 100644
index 0000000..7deccb2
--- /dev/null
+++ b/src/test/java/com/android/tools/r8/classmerging/horizontal/testclasses/PackagePrivateClass.java
@@ -0,0 +1,14 @@
+// Copyright (c) 2020, the R8 project authors. Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+package com.android.tools.r8.classmerging.horizontal.testclasses;
+
+import com.android.tools.r8.NeverClassInline;
+
+@NeverClassInline
+class PackagePrivateClass {
+  public PackagePrivateClass() {
+    System.out.println("package private");
+  }
+}
diff --git a/src/test/java/com/android/tools/r8/classmerging/horizontal/testclasses/PackagePrivateClassRunner.java b/src/test/java/com/android/tools/r8/classmerging/horizontal/testclasses/PackagePrivateClassRunner.java
new file mode 100644
index 0000000..9c10bcc
--- /dev/null
+++ b/src/test/java/com/android/tools/r8/classmerging/horizontal/testclasses/PackagePrivateClassRunner.java
@@ -0,0 +1,23 @@
+// Copyright (c) 2020, the R8 project authors. Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+
+package com.android.tools.r8.classmerging.horizontal.testclasses;
+
+import com.android.tools.r8.NeverClassInline;
+import com.android.tools.r8.NeverInline;
+
+@NeverClassInline
+public class PackagePrivateClassRunner {
+
+  public PackagePrivateClassRunner() {}
+
+  @NeverInline
+  public void run() {
+    new PackagePrivateClass();
+  }
+
+  public static Class<?> getPrivateClass() {
+    return PackagePrivateClass.class;
+  }
+}
diff --git a/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/BufferedReaderTest.java b/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/BufferedReaderTest.java
index 380703c..c2a8275 100644
--- a/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/BufferedReaderTest.java
+++ b/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/BufferedReaderTest.java
@@ -150,8 +150,6 @@
 
   @Test
   public void testBufferedReaderD8() throws Exception {
-    expectThrowsWithHorizontalClassMergingIf(
-        shrinkDesugaredLibrary && parameters.getApiLevel().isLessThan(AndroidApiLevel.N));
     Assume.assumeTrue(parameters.getRuntime().isDex());
     KeepRuleConsumer keepRuleConsumer = createKeepRuleConsumer(parameters);
     testForD8()
@@ -180,8 +178,6 @@
 
   @Test
   public void testBufferedReaderR8() throws Exception {
-    expectThrowsWithHorizontalClassMergingIf(
-        shrinkDesugaredLibrary && parameters.getApiLevel().isLessThan(AndroidApiLevel.N));
     Assume.assumeTrue(parameters.getRuntime().isDex());
     KeepRuleConsumer keepRuleConsumer = createKeepRuleConsumer(parameters);
     testForR8(parameters.getBackend())
diff --git a/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/CustomCollectionTest.java b/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/CustomCollectionTest.java
index eadaa9b..2330854 100644
--- a/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/CustomCollectionTest.java
+++ b/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/CustomCollectionTest.java
@@ -9,7 +9,6 @@
 import com.android.tools.r8.D8TestRunResult;
 import com.android.tools.r8.R8TestRunResult;
 import com.android.tools.r8.TestParameters;
-import com.android.tools.r8.utils.AndroidApiLevel;
 import com.android.tools.r8.utils.BooleanUtils;
 import com.android.tools.r8.utils.codeinspector.CodeInspector;
 import com.android.tools.r8.utils.codeinspector.InstructionSubject;
@@ -53,8 +52,6 @@
 
   @Test
   public void testCustomCollectionD8() throws Exception {
-    expectThrowsWithHorizontalClassMergingIf(
-        shrinkDesugaredLibrary && parameters.getApiLevel().isLessThan(AndroidApiLevel.N));
     KeepRuleConsumer keepRuleConsumer = createKeepRuleConsumer(parameters);
     D8TestRunResult d8TestRunResult =
         testForD8()
@@ -87,8 +84,6 @@
 
   @Test
   public void testCustomCollectionR8() throws Exception {
-    expectThrowsWithHorizontalClassMergingIf(
-        shrinkDesugaredLibrary && parameters.getApiLevel().isLessThan(AndroidApiLevel.N));
     KeepRuleConsumer keepRuleConsumer = createKeepRuleConsumer(parameters);
     R8TestRunResult r8TestRunResult =
         testForR8(Backend.DEX)
diff --git a/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/conversiontests/SummaryStatisticsConversionTest.java b/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/conversiontests/SummaryStatisticsConversionTest.java
index 9bce171..7fe00d5 100644
--- a/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/conversiontests/SummaryStatisticsConversionTest.java
+++ b/src/test/java/com/android/tools/r8/desugar/desugaredlibrary/conversiontests/SummaryStatisticsConversionTest.java
@@ -66,7 +66,6 @@
 
   @Test
   public void testStatsD8() throws Exception {
-    expectThrowsWithHorizontalClassMergingIf(shrinkDesugaredLibrary && shrinkDesugaredLibrary);
     KeepRuleConsumer keepRuleConsumer = createKeepRuleConsumer(parameters);
     testForD8()
         .setMinApi(parameters.getApiLevel())
@@ -86,7 +85,6 @@
 
   @Test
   public void testStatsR8() throws Exception {
-    expectThrowsWithHorizontalClassMergingIf(shrinkDesugaredLibrary && shrinkDesugaredLibrary);
     KeepRuleConsumer keepRuleConsumer = createKeepRuleConsumer(parameters);
     testForR8(parameters.getBackend())
         .setMinApi(parameters.getApiLevel())