On the coattails of announcing an initiative to thwart collusion in supply chain disruptions during the pandemic, the DOJ reaffirmed a continuing commitment to jointly enforce antitrust laws with the Federal Maritime Commission (FMC), a bipartisan Executive Branch agency designed to ensure a competitive and reliable international ocean transportation supply system to protect the public from unfair and deceptive business practices.
In a press release on February 28, 2022, U.S. Attorney General Merrick B. Garland advised, “Competition in the maritime industry is integral to lowering prices, improving quality of services, and strengthening supply chain resilience. Expanding joint enforcement partnerships like the partnership between FMC and DOJ is one of our most powerful tools for promoting competition. Law breakers should know that the Justice Department will provide the Federal Maritime Commission all the necessary litigation support as it pursues its mission of promoting competition in ocean shipping.”
FMC Chairman Daniel B. Maffei agreed, “The Attorney General and I share both the priority of a competitive marketplace and a commitment to pursue enforcement actions when necessary. Our agencies have a history of cooperating to the benefit of the American consumer and this new support will help ensure that the working relationship will help both government entities in our shared goal of fair competition.”
The DOJ’s Antitrust Division has a longstanding history of successful prosecutions in the maritime shipping industry, including convictions of large U.S. companies that provided freight shipping services to customers transporting goods between the continental U.S. and Puerto Rico. In that 2008 investigation, five corporate executives were charged with eliminating competition and raising prices by agreeing not to compete for one another’s customers (market allocation); agreeing to rig bids submitted to government and commercial buyers; agreeing to fix the prices of rates, surcharges, and other fees charged to customers; and obstructing justice. One of those defendants received a 48 month sentence, the longest jail term ever imposed for a single antitrust violation at that time.
If you find yourself in need of experienced antitrust representation, please contact Senior Counsel Jim Kurosad of Dysart Willis, who has over 30 years of experience in DOJ white collar crime investigations from both sides of the aisle.