By: Robert Connolly (Cartel Capers)
There are a number of reasons to expect increased criminal antitrust enforcement in the new administration. One reason may be the activity in the pipeline from the previous administration. The Antitrust Division has reported a very robust number of active grand jury matters. The Procurement Strike Force has been underway for some time–and it takes times to see the full effect of those efforts. It can also be expected that the Antitrust Division will see a reasonable, and perhaps significant increase in funding. The antitrust reforms proposed by Senator Amy Klobuchar call for significantly greater resources for the Antitrust Division. See http://cartelcapers.com/blog/senator-klobuchar-unveils-wide-ranging-antitrust-enforcement-legislation/. And the COVID pandemic, unfortunately, may be providing temptation for collusion. As of September 1, 2020, roughly $2.59 trillion in new budgetary resources have been made available for federal agencies to respond to the pandemic. President Biden is seeking an additional $1.9 trillion. The Antitrust Division has long recognized that times of crisis can bring out the best, and worst, in companies and people. In the aftermath of Hurricanes Harvey and Irma in 2017 the Antitrust Division and FTC issued a joint statement on Antitrust Guidance that included this: “While natural disasters often bring out the best in human compassion and spirit, they can also lead to unscrupulous individuals and organizations taking advantage of those in need.”
This is an ideal time to add another tool for exposing covert conspiracies to the Antitrust Divisions’ arsenal: legislation that gives the Antitrust Division the same whistleblower incentives that has skyrocketed SEC prosecutions. I recently had an article published on Law 360, DOJ Should Take Cue From SEC On Whistleblower Incentives. The article describes a hypothetical situation facing a potential criminal antitrust whistleblower given the current situation of no potential financial reward…
