DOJ Assistant Attorney General Baer Delivers Remarks on Effective Antitrust Enforcement | Practical Law

DOJ Assistant Attorney General Baer Delivers Remarks on Effective Antitrust Enforcement | Practical Law

Assistant Attorney General Bill Baer delivered remarks on the elements of effective antitrust enforcement at the Global Competition Review Fourth Annual Antitrust Leaders Forum.

DOJ Assistant Attorney General Baer Delivers Remarks on Effective Antitrust Enforcement

by Practical Law Antitrust
Published on 06 Feb 2015USA (National/Federal)
Assistant Attorney General Bill Baer delivered remarks on the elements of effective antitrust enforcement at the Global Competition Review Fourth Annual Antitrust Leaders Forum.
On February 6, 2015, Assistant Attorney General Bill Baer of the Antitrust Division of the Department of Justice (DOJ) delivered remarks on effective antitrust enforcement. Baer explained that antitrust enforcement is intended to protect, not regulate, competition, and listed principles that lead to effective enforcement, including:
  • Be prepared for trial. Baer noted that though most cases settle, the DOJ must be able to prove their case to a judge.
  • Coordinate with other agencies, both domestic and foreign. Baer explained that engaging with other antitrust agencies is important to protect consumers and competition. Baer noted that the FTC and DOJ routinely collaborate on law enforcement, policy-making and competition advocacy. For instance, the FTC refers hard-core Sherman Act Section 1 violations to the DOJ for criminal prosecution, and the DOJ refers to the FTC matters that best fall under Section 5 of the FTC Act. Baer also lauded the DOJ's coordination with other US government agencies and international competition authorities, particularly with respect to recent cartel investigations and merger control.
  • Limit needless burdens and costs. As examples of the DOJ's commitment to lowering unnecessary burdens and costs, Baer pointed to:
    • the streamlined procedure for parties wishing to terminate or modify settlement agreements and other judgments entered before 1980;
    • the DOJ's acceptance of predictive coding for more efficient electronic records production; and
    • standardized electronic production requirements.
  • Give meaningful front-end guidance to businesses, courts and the public on antitrust analysis. Baer noted that the antitrust agencies educate consumers by issuing formal guidelines, such as the Horizontal Merger Guidelines, as well as business review letters and speeches, sometimes specific to certain sectors or conduct.
  • Anticipate market disruptors and protect innovators. Baer explained that when new business models disrupts a market, competitors are tempted to resort to anticompetitive means to preserve their profits. For example, Baer pointed to the current pharmaceutical market and how competition from generic manufacturers led to anticompetitive conduct by other competitors.
  • Pay careful attention to remedies. Baer explained that remedies are crucial to maximize competition and minimize regulatory involvement. In addition to continued demand for civil penalties and disgorgement, as seen in the gun-jumping enforcement action in last year's Flakeboard/SierraPine merger, Baer noted the importance of:
    • effective pre-merger structural remedies, as seen in divestitures required in the mergers of Anheuser-Busch InBev/Grupo Modelo and US Airways/American Airlines;
    • post-merger structural remedies, as seen in the unwinding of the Bazaarvoice/PowerReviews merger; and
    • behavioral remedies, as seen in the Apple e-books investigation.
Baer stated that the DOJ will continue to seek the most effective relief for antitrust violations and continuously review the effectiveness of those remedies.