DOJ and FTC Officials Testify Before Senate on Enforcement Priorities and Accomplishments | Practical Law

DOJ and FTC Officials Testify Before Senate on Enforcement Priorities and Accomplishments | Practical Law

Department of Justice (DOJ) Assistant Attorney General Bill Baer and Federal Trade Commission (FTC) Chairwoman Edith Ramirez delivered remarks to the US Senate on the DOJ's and FTC's current antitrust enforcement priorities and recent accomplishments promoting and protecting competition.

DOJ and FTC Officials Testify Before Senate on Enforcement Priorities and Accomplishments

by Practical Law Antitrust
Published on 10 Mar 2016USA (National/Federal)
Department of Justice (DOJ) Assistant Attorney General Bill Baer and Federal Trade Commission (FTC) Chairwoman Edith Ramirez delivered remarks to the US Senate on the DOJ's and FTC's current antitrust enforcement priorities and recent accomplishments promoting and protecting competition.
On March 9, 2016, DOJ Assistant Attorney General Bill Baer and FTC Chairwoman Edith Ramirez testified to the US Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights Committee on the Judiciary on the agencies' antitrust enforcement efforts and the importance of maintaining an active antitrust enforcement program.

Department of Justice

In his remarks, Assistant AG Baer stressed the importance of the DOJ's antitrust enforcement work and urged Congress to approve President Obama's request for $16 million in additional funding for the DOJ in Fiscal Year 2017. Baer focused his remarks on key areas of DOJ enforcement, including:
  • Preventing and deterring cartels.
  • Ensuring the DOJ is prepared to challenge anticompetitive mergers.
  • Obtaining strong and effective remedies.
  • Continuing competition advocacy domestically and abroad.

Cartel Work

Baer stated that in the last year, the DOJ collected more than $3.6 billion in criminal fines and penalties and prosecuted over 400 individuals as a result of its cartel investigations. The DOJ is continuing to investigate cartels related to:

Merger Enforcement

Baer explained that DOJ attorneys must be ready for trial so companies know the DOJ is always prepared to effectively enforce antitrust laws (see, for example, What's Market, U.S. v. AB Electrolux, Electrolux North America, Inc., and General Electric Company (litigated case)). Baer noted that in 2015 compared to 2014, mergers valued at more than $10 billion more than doubled and that overall global merger activity has reached historic levels.

Strong Remedies

Baer explained that the DOJ's resources also go towards ensuring that proposed remedies are sufficient to punish and deter illegal conduct. Baer stated that the DOJ reviews every settlement offer and is reluctant to agree to any offer that will only partially remedy the harm. Additionally, Baer stated that the DOJ will not settle any Clayton Act violation unless the remedy will fully protect customers into the future.

Competition Advocacy

Finally, Baer stated that the DOJ uses other tools to protect competition, including:
  • Working with the FTC to:
    • hold public workshops;
    • remove unnecessary regulation; and
    • issue joint policy statements.
  • Assisting antitrust authorities abroad with adopting strong merger and conduct enforcement policies.

Federal Trade Commission

In her remarks, Commissioner Edith Ramirez stated that in 2015 the FTC focused its enforcement efforts on:
  • Robust merger enforcement.
  • Preventing anticompetitive conduct.
  • Competition advocacy.

Merger Enforcement

Ramirez stated that since 2013, HSR filings have increased by 32%. In 2015, the FTC challenged 27 mergers and filed suit to block six of those mergers (see, for example, What's Market, F.T.C. v. Sysco Corp., USF Holding Corp., and US Foods, Inc. (litigated case)). The FTC focused much of its efforts in 2015 on preventing healthcare provider consolidation, including three hospital merger challenges that are currently pending. The FTC also focused on the pharmaceutical industry, challenging 17 mergers in the last two years.

Anticompetitive Conduct

Ramirez stated that the FTC's top priority for conduct-based enforcement is preventing pharmaceutical reverse payment settlement agreements (pay-for-delay agreements) pursuant to the Supreme Court's ruling in FTC v. Actavis (570 U.S. 756 (2013)) (see Practice Notes, Reverse Payment Settlement Agreements and Actavis Case Tracker). Ramirez noted that after Actavis, the number of pay-for-delay agreements declined, and more patent disputes were settled without reverse payments. Ramirez noted that the FTC will continue to monitor ongoing pay-for-delay cases and file amicus briefs where appropriate.
Ramirez also stated that the FTC is monitoring other forms of pharmaceutical anticompetitive behavior, including abusing safety protocols and product hopping (see Practice Note, Healthcare Competition: Pharmaceuticals).
The FTC also works to detect and prevent anticompetitive conduct in other markets. The FTC secured a victory in North Carolina Board of Dental Examiners v. Federal Trade Commission, in which the US Supreme Court held that the State Board of Dental Examiners was not protected by state-action immunity when it allegedly violated the FTC Act by prohibiting non-dentists from providing teeth-whitening services in North Carolina (see Legal Update, Supreme Court Rules that State Board of Dental Examiners Not Protected by State-action Antitrust Immunity).
Ramirez explained that conduct-based enforcement actions provide guidance to companies to help them avoid antitrust violations.

Competition Advocacy

Finally, Ramirez stated that the FTC continues to actively promote competition through research and advocacy. The FTC is currently conducting studies regarding:
  • Patent assertion entities (PAEs), which is nearing completion.
  • The effectiveness of remedies in past merger cases.
Ramirez explained that, together with the DOJ, the FTC holds workshops on emerging competition issues, including a recent workshop on the sharing economy. The FTC also works with domestic and international agencies to promote competition around the globe.