WASHINGTON, DC – Today, the Tech Oversight Project spotlighted the early wins and historic enforcement levels from Assistant Attorney General Jonathan Kanter’s Antitrust Division. From re-writing the merger guidelines to litigating more cases than the department has seen in decades, Kanter and the division are taking significant steps forward in terms of reorienting the division to help improve market competitiveness, correct overwhelming consolidation, and prevent massive monopolies, like Big Tech, from carrying out acquisitions that will harm consumers. View the full research report here, and highlights below:

Enforcing the law at historic levels, despite resource shortages

• Currently, the antitrust division has the largest number of civil antitrust cases in decades. They are currently litigating six civil cases, the most in 20 years.

• Under Kanter’s leadership, the DOJ antitrust division will litigate more merger trials in FY 2022 than any fiscal year on record.

• Along with the FTC, the DOJ antitrust division reviewed around 3,500 transactions in FY 2021, a record.

• Since Kanter took over in Nov. 2021, the DOJ has indicted defendants in 20 criminal cases, more than any time since the 1980s.

• The division also ended FY 2021 with 146 pending grand jury investigations, the most in 30 years.

• Kanter’s DOJ antitrust division has been historically productive despite being under-resourced and under-staffed. In 2021, the division had around 650 staffers, compared to the around 1,000 staffers the division had in 1979.

Re-writing the federal merger guidelines and launching initiatives to help protect Americans from anti-competitive practices

• Under Kanter, the DOJ antitrust division is working with the FTC to rewrite federal guidelines on mergers, with an eye toward persuading courts to block more deals.

• The DOJ and FTC have held public listening sessions as they work to rewrite merger guidelines, hearing from consumers, workers, entrepreneurs and farmers, among others. The sessions focused on industries and labor markets commonly impacted by mergers, including food and agriculture, health care, media and technology.

• Under Kanter, the DOJ’s antitrust division is investigating ways to challenge private equity on monopoly grounds and sounding the alarm on buyout groups acquiring assets that companies have been ordered to divest to avoid competition issues.

• In Feb. 2022, DOJ’s antitrust division and the FDA launched an online portal for farmers and ranchers to anonymously report anti-competitive practices in the livestock and poultry sectors.

• In Feb. 2022, DOJ’s antitrust division partnered with the FBI to fight inflation by going after companies that take advantage of supply chain disruptions to collude with rivals in order to raise prices.

Fighting uncompetitive deals, protecting Americans from higher prices and global supply chain issues

• According to Loyola Chicago School of Law Professor Christine Chabot, Kanter’s DOJ Antitrust Division’s “no guts, no glory” approach to antitrust enforcement will have a deterrent effect, as other potentially merging parties are watching and may adjust their conduct.

• According to University of Washington Law Professor Douglas Ross, the mere threat of DOJ lawsuits can quash mergers because companies can face massive financial, time and reputational costs from being in litigation.

• Kanter: “If bad actors, know that we’re not going to be afraid to take on a tough fight against well- resourced opponents, they’re going to think twice.”

• In August 2022, the DOJ Antitrust Division sunk a merger of two of the four biggest suppliers of refrigerated shipping container companies.

  • The shipping container suppliers, China International Marine Containers and Maersk Container Industry, abandoned their billion dollar merger after a DOJ investigation raised competition concerns.

  • The merger would have consolidated 90% of refrigerated shipping container production worldwide into Chinese state-owned or state-controlled entities.

  • Kanter said the merger would have led to “”higher prices, lower quality, and less resiliency in global supply chains.”

• In March 2022, the DOJ Antitrust Division helped stop a merger of two shipping giants that would have eliminated competition and raised prices for goods like medicine.

  • The shipping giants, Cargotec and Konecranes, abandoned planned merger after Kanter and the DOJ antitrust division threatened to go to court to block the deal.

  • Kanter said the merger threatened to harm competition in the sale of container handling equipment to U.S. Port customers and terminal operators that move consumer products, medicines and other important goods through the global supply chain.

• In Sept. 2022, the DOJ Antitrust Division sued to block a merger between two door lock-makers and help protect privacy and security of Americans.

  • The DOJ lawsuit against the proposed $4.3 billion acquisition of a division of Spectrum Brands Holdings by Assa Abloy AB, would give Assa Abloy a near monopoly in top-line mechanical door hardware.

  • Kanter: The merger would lead to higher prices and reduced quality for “millions of Americans,” who “rely on these companies’ door hardware products every day to meet their most basic privacy and security needs.”

• In May 2022, the DOJ’s Antitrust Division was able to successfully stop a merger of two wall panel companies that would have led to higher costs for small business owners, hospitals.

  • The two wall panel companies, Grupo Verzatec and Crane Composites, abandoned their proposed transaction after the DOJ’s antitrust division filed suit.

  • The deal would have harmed the market for pebbled fiberglass reinforced plastic (FRP) wall panels, the wall covering of choice for many restaurants, grocery stores, hospitals and convenience stores.

• DOJ’s Antitrust Division is still trying to stop the merger of two sugar giants, and keep down the coat of staple foods and beverages.

  • In Nov. 2021, DOJ’s Antitrust Division sued to block the merger of United States Sugar and Imperial Sugar, arguing the transaction would leave just two companies, United and Domino, in control of nearly 75% of sugar sales across the southeast U.S.

  • Kanter: “Further consolidation in the market for this kitchen staple will have real-world consequences for Americans.”

  • Note: In Sept. 2022, a US Judge ruled in favor of allowing the merger to go through. The DOJ Antitrust Division is appealing the ruling, but lost its attempt to pause the merger from going through before the appeal is heard.

• DOJ’s Antitrust Division is trying to save consumers $700 million/year by stopping American Airlines, JetBlue partnership.

  • In Sept. 2022, the DOJ’s Antitrust Division went to trial to kill a partnership between American Airlines and JetBlue Airways. They argued the alliance would allow the carriers to limit capacity and harm fare-reducing competitors, costing consumers $700 million each year.

  • Note: The lawsuit was originally filed in Sept. 2021. DOJ’s Antitrust Division is holding Google accountable.

  • In Aug. 2022, Bloomberg reported how the DOJ Antitrust Division was preparing to sue Google for illegally dominating the digital advertising market.

  • DOJ also currently has a pending case against Google for illegally dominating the online search market that was originally filed in 2020.

• DOJ’s Antitrust Division Backed Students Fighting Universities That Allegedly Colluded To Raise The Price Of College.

  • In July 2022, Kanter’s antitrust division backed a class-action filed by former college students who claim top universities improperly boosted tuition costs by agreeing not to compete over how much financial aid they offered.

  • The lawsuit filed by students in January alleges that 16 elite colleges, agreed on a calculation for how much a student’s family can contribute before they will aware financial aid – an agreement that has raised the price that students pay to attend college.

• DOJ’s Antitrust Division Is Fighting For Communities With Minor League Baseball And Minor League Baseball Players.

  • In June 2022, the DOJ’s antitrust division asked a federal court to limit the antitrust exemption given to MLB. The filing was in response to a lawsuit by three minor league teams, that, along with 40 others, were eliminated by MLB in a consolidation.

  • The MLB’s antitrust exemption also prevents minor league players from pursuing opportunities in other leagues and advocacy groups have argued that minor league salaries, which are currently below the poverty line, would increase if teams competed for players.

• DOJ’s Antitrust Division Tried to Stop Deal That Will Raise Health Care Costs, But Still Won Key Concession.

  • In Feb. 2022, the DOJ’s antitrust division filed a lawsuit aimed at stopping UnitedHealth Group’s acquisition of Change Healthcare. The DOJ said the deal would give the largest U.S. health insurer access to its competitors’ data and ultimately push up healthcare costs.

  • In Sept. 2022, a US Judge denied DOJ’s bid to stop the merger, but as Bloomberg reported, “UnitedHealth Group Inc. agreed to spin off more of Change Healthcare Inc.’s business than originally proposed… after the agency unsuccessfully sued to block that deal.”

• DOJ’s Antitrust Division Stopped Anti-Competitive Practices By Credit Rating Agency S&P.

  • In May 2022, the Kanter and the DOJ’s antitrust division warned S&P Global that a proposed methodology change by S&P could raise barriers for its rivals. The changes could end up hurting the credit grades of insurance companies that invest in bonds that aren’t rated by S&P.

  • S&P dropped the proposed changes five days after DOJ’s warning.

• DOJ’s Antitrust Division Lawsuit Over Booz Allen’s Purchase Of Competitor Extracted Important Concessions, Ensured Months Of Competition.

  • In October 2022, Bloomberg reported that DOJ antitrust Division’s lawsuit against Booz Allen’s $440 million acquisition of competitor EverWatch slowed the deal for several months, helping to ensure the companies continued to compete on a federal intelligence contract with NSA.

  • Kanter: “The Department’s lawsuit…fueled competition for an important national security contract by forcing the parties to prepare bids independently and without certainty of a merger.”

  • Bloomberg also reported that DOJ’s lawsuit forced Booz Allen to drop a merger agreement clause to seize veto power over EverWatch’s bids even before the deal closed.

Protecting from bid-rigging and collusion taxpayer dollars and business people that play by the rules

• DOJ’s Antitrust Division Protected Our Military Overseas, Indicted Contractors Rigging Bids For Work On Military Bases In Korea.

  • In March 2022, the DOJ Antitrust Division won indictment of two South Korean contractors charged with rigging bids for work carried out on military bases. The contractors defrauded DOD to obtain millions of dollars in repair and maintenance work.

  • Kanter: “Bid rigging, price fixing and fraud are crimes. We will not stand by as criminals engage in illegal conduct to harm our military [installations] overseas.”

• DOJ’s Antitrust Division Protected Taxpayer Dollars, Won Guilty Plea And $1.2 Million Fine From Commercial Carpeting Company And Its CEO.

  • In June 2022, the DOJ’s antitrust division won a guilty plea in a case against a commercial carpeting company and its CEO, resulting in a $1.2 million fine. The company and its CEO admitted to colluding with competitors to suppress competition and submitting complementary bids so that the designated company would win the contract.

• DOJ’s Antitrust Division Protected Taxpayer Dollars, Cracked Down On Corruption In California’s Transportation Agency.

  • In April 2022, the DOJ’s antitrust division won a guilty plea from a former contract manager for California’s transportation agency who agreed to help with prosecutors investigation into a conspiracy to rig the competitive bidding process for improvement and repair contracts.

  • In October 2022, the DOJ’s antitrust division won a guilty plea from a construction contractor who had coordinated bids and paid bribes to the former contract manager to help rig the bidding process.

  • Kanter in October 2022: “Today’s guilty plea involves crimes affecting industries that receive significant funding for infrastructure and transportation… The Antitrust Division and its Procurement Collusion Strike Force are redoubling efforts to enforce the law against bid-rigging and fraud that steals taxpayer dollars.”

• DOJ’s Antitrust Division Won Conviction Against Engineering Executive For Rigging Bids and Defrauding North Carolina’s Department Of Transportation.

  • In Feb. 2022, the DOJ’s Antitrust Division won a conviction against a former engineering company executive for fraud and conspiracy related to bid-rigging of hundreds of North Carolina Department of Transportation projects.

  • Kanter said the conviction sent a message that with massive spending in infrastructure projects about to begin, the Justice Department’s Antitrust Division is committed to holding “accountable executives who target state and local governments with their bid-rigging and fraud schemes.”

• DOJ’s Antitrust Division Won Indictment Against Concrete Company And Its CEO For Rigging Bids For Public Contracts

  • In March 2022, the DOJ’s Antitrust Division won an indictment charging Kamida Inc concrete repair and construction corporation, and its CEO with participating in a conspiracy to rig bids for public concrete repair and construction contracts in the state of Minnesota, including for public school districts.

  • Kanter: “Bid-rigging schemes that target local government contracts cheat taxpayers out of the benefits of competition.”

• DOJ Antitrust Division Won Indictment Of Three Florida Men For Rigging Bids And Defrauding The US Military.

  • In April 2022, the DOJ’s Antitrust Division won the indictment of three men who o Kanter: “Bid-rigging and fraud schemes targeting the military will not be tolerate – they are an affront to competition and the American taxpayer.”

• DOJ Antitrust Division Helped Protect Strategic Petroleum Reserve, Won Guilty Verdict Against Man Who Defrauded United States In Obtaining Contracts For SPR Operation.

  • In May 2022, the DOJ’s Antitrust Division won a guilty verdict in the case of a man who defrauded the United States by corrupting and impairing the government procurement process in order to obtain contracts for operation of the Strategic Petroleum Reserve.

  • Kanter: “The Strategic Petroleum Reserve is one of our nation’s vital programs, and collusion that destroys the integrity of the procurement process for government contracts will not be tolerated.”

• DOJ Antitrust Division Protected The Military And Taxpayer Dollars, Won Indictment Of Contractor Who Rigged Bids.

  • In May 2022, the DOJ’s Antitrust Division won an indictment charging a military contractor for rigging bids for lucrative contracts at military installations across the country.

  • The contractor had received more than $15 million from the government for work at Red River Army Depot in Texarkana, Texas; the U.S. Army Contracting Command in Warren, Michigan; and the Sierra Army Depot in Herlong, California.

  • Kanter: “Bid rigging undermines the competitive process, wastes taxpayer dollars and deprives businesses that follow the rules of fair competition.”

• DOJ Antitrust Division Won Indictment Of Military Contractors Involved In Fraud Scheme For $7 Million Worth Of Contracts.

  • In June 2022, the US Antitrust Division won indictment of military contractors for a fraud scheme involving government contracts totaling over $7 million.

  • The contractors were accused of sham quotes that were intentionally higher than the proposal prices to ensure their company won sole-source contracts.

• DOJ Antitrust Division Protected Taxpayer Dollars And Veterans, Won Conviction Of Businessman Who Illegally Obtained More Than $240 Million In Contracts Meant For Veterans

  • In July 2022, the DOJ’s Antitrust Division won the conviction of a businessman who defrauded the federal government by illegally obtaining more than $240 million in contracts intended for service-disabled veteran-owned small businesses.

  • The businessman and a co-conspirator, who were not veterans, tried to conceal their control of the company that received the contracts by using a veteran a “puppet” majority owner of their company, even though he didn’t pay any money for the stake.

  • Kanter: The verdict is a victory for the rule of law… which protects service-disabled veterans from cheaters and schemers.”

• DOJ Antitrust Division Protected Taxpayer Dollars, Won Guilty Pleas By Companies That Colluded For Insulation Contracts At Hospitals And Universities.

  • In August 2022, the DOJ’s Antitrust Division won guilty pleas from companies that met to determine bids and prices for insulation contracts for various places in Connecticut, including projects at universities and hospitals.

  • The officials involved in the conspiracy shared proposals, estimates and agreed to submit inflated bids to create the appearance of competition, then used apps to conceal their communications.

  • Kanter: taxpayer-funded infrastructure projects “deserve to have contracting processes that are fair and competitive.”

Fighting back against companies and executives who collude top suppress workers’ wages and mobility

• DOJ Antitrust Division Won Guilty Plea From Health Care Staffing Agency That Agreed Not To Hire Competitor’s Nurses.

  • In October 2022, the DOJ’s Antitrust Division won a guilty plea from a health-care staffing provider accused of agreeing not to hire a competitor’s nurses. The agreement marked DOJ’s its first-ever criminal win in a so-called no-poaching case. The company paid a $134K fine as part of the plea agreement.

  • The company and its regional manager conspired with a competitor to suppress wages and not hire or recruit nurses staffed by their companies at school facilities in Clark County, Nevada. The nurses the company contracted with provided constant care to students with complex medical needs.

• DOJ Antitrust Division Won Guilty Plea From Health Care Staffing Agency That Agreed Not To Hire Competitor’s Nurses.

  • In Dec. 2021, the US DOJ Antitrust Division won an indictment against five aerospace executives on charges of conspiring to limit workers’ professional advancement and compensation.

  • The conspiracy affected thousands of engineers and other skilled workers in the aerospace industry who design, manufacture, and service aircraft components for commercial and military purposes.

  • Kanter: “The government uncovered a “‘widespread scheme to deprive aerospace workers of the ability to plan their own careers and earn competitive pay.”

• DOJ Antitrust Division Fought For Essential Workers, Won Indictment Against Those Who Sought To Suppress Their Wages.

  • In Jan. 2022, the DOJ Antitrust Division won an indictment against four managers of home health care agencies who conspired to suppress essential workers’ wages and prevent competition during the pandemic.

  • The managers made a secret pact to pay home health care workers $15 or $16 per hour, despite a higher reimbursement rate from the state meant to increase the workers’ pay to between $20.20 and $26.20 during the pandemic.

  • Kanter: Home health care workers “risked their health caring for others at the onset of the COVID-19 pandemic” and these managers “colluded to deprive them of opportunities to earn better wages.”

• DOJ Antitrust Division Won $85 Million In Fines From Poultry Makers That Worked To Suppress Wages.

  • In July 2022, three poultry makers agreed to pay $84.8 million to resolve allegations that they violated antitrust law by improperly communicating about worker wages and benefits. The fines went toward restitution for poultry processing plant workers harmed by the conspiracy.

  • The agreement also allowed a court-appointed monitor to ensure the companies do not suppress wages for the next decade.