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Antitrust Regulation: Why You Should Care?

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This is short review of why you should care about Antitrust regulation.
Born during the heyday of robber barons, antitrust regulations prohibit agreements or understandings between competitors that undermine competition.. Perhaps, you may be in violation and not even know it. Even indirect agreements with competitors may put you in violation - the proverbial (and prohibited) "wink and nod" agreement. Email Dr Singh for more insights: ncsingh@integtree.com

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This material is confidential and proprietary to IntegTree LLC and may not be reproduced, published or disclosed to others without the express authorization of IntegTree LLC. IntegTree LLC is not a law firm and is not engaged in providing legal or other similar professional advice or services. In providing our services, IntegTree LLC attempts to provide its clients with “effective practices” in light of then-current laws and/or regulations. IntegTree’s services should not replace advice from your in-house or outside counsel or their opinions concerning company practices.

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Antitrust Regulation: Why You Should Care?

  1. 1. Copyright © IntegTree (2014) www.IntegTree.com Anti-Trust Regulations Dr. Nitish Singh & Thomas J. Bussen (J.D./MBA) E-mail: ncsingh@integtree.com
  2. 2. Copyright © IntegTree (2014) www.IntegTree.com What are Antitrust Regulations? • Born during the heyday of robber barons, antitrust regulations prohibit agreements or understandings between competitors that undermine competition. It also regulates the behavior of dominant companies, and may require review and clearance of mergers or acquisitions. • The Sherman Act and the Robinson-Patman Act are competition laws that regulate companies. • The Sherman Act prohibits price agreement, bid rigging, territory or customer allocations and other agreement with competitors • The Sherman Act also prohibits monopolization or attempted monopolization – Price cutting by dominant companies could signal a violation – Limiting competitors' access to suppliers or markets could signal a violation • The Robinson-Patman Act prohibits price cutting by dominant companies, and works to curb large companies' ability to demand lower prices from suppliers
  3. 3. Copyright © IntegTree (2014) www.IntegTree.com Why Do You Care? • You may be in violation and not even know it • Even indirect agreements with competitors could put you in violation - the proverbial (and prohibited) "wink and nod" agreement • You could be sued by private entities or individuals, or by the government, either civilly or criminally • The DOJ has recovered over $1 billion in criminal fines; private suits often result in settlements in the hundreds of millions • In any event, fighting an antitrust suit is very time consuming and expensive. The best approach is defensive, and includes proper training and avoidance
  4. 4. Copyright © IntegTree (2014) www.IntegTree.com What Can You Do to Comply? • Train your workforce, including management. – Review the intersecting areas of antitrust law to which you may be subject. – Identify the prohibited practices, including practices that may not intuitively appear suspect. – Identify high risk transactions, and red flags that may warrant internal reporting by your workers • Due diligence of potential acquisitions for potential antitrust concerns
  5. 5. Copyright © IntegTree (2014) www.IntegTree.com About the Authors • Integtree President Dr. Nitish Singh Associate Professor at Saint Louis University’s John Cook School of Business, has been at the forefront of ethics and compliance management and developed a University Certification program used by business executives and lawyers worldwide. • IntegTree Vice President Thomas J. Bussen holds a J.D., MBA, and Ethics and Compliance Certification from Saint Louis University’s John Cook School of Business, where he is adjunct faculty. A former litigator at an AV rated law firm, Thomas knows first hand the unforeseen problems that arise with inadequate risk management.
  6. 6. Copyright © IntegTree (2014) www.IntegTree.com Additional Resources • Join The Ethics & Compliance Professors complementary subscribers list by clicking here. • IntegTree specializes in the worldwide localization of ethics and compliance programs, regulatory and ethical training, and psychometric testing to provide deep insights to improve existing compliance programs.
  7. 7. Copyright © IntegTree (2014) www.IntegTree.com Disclaimer: • This material is confidential and proprietary to IntegTree LLC and may not be reproduced, published or disclosed to others without the express authorization of IntegTree LLC. IntegTree LLC is not a law firm and is not engaged in providing legal or other similar professional advice or services. In providing our services, IntegTree LLC attempts to provide its clients with “effective practices” in light of then-current laws and/or regulations. IntegTree’s services should not replace advice from your in-house or outside counsel or their opinions concerning company practices.

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