Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Baer discusses impact of antitrust enforcement on consumers, (Oct 27, 2014)

By Greg Hammond, J.D.

William J. Baer, Assistant Attorney General in charge of the U.S. Department of Justice Antitrust Division, discussed the Division’s enforcement efforts and its impact on consumers, during the National Asian American Coalition’s 11th Annual Homeownership and Economic Development Conference in San Diego, on October 4. His prepared remarks were entitled “Competition Matters: Enforcing the Antitrust Laws on Behalf of the American Consumer.”

“As a candidate, President Obama promised vigorous enforcement of our antitrust laws,” stated Baer. “We have made good on his pledge.”

First, Baer noted the example of an illegal agreement between certain publishers and Apple to raise the prices of e-books. After putting a stop to the price fixing conspiracy, the prices for e-books fell from $12.99 or $14.99 for a best-seller in 2010, to an average of $8. In addition, “Our e-books case has helped state attorneys general and private plaintiffs thus far secure over $160 million in direct refunds to those who were wrongfully forced to pay higher prices,” he said. The refunds were directly credited to customers’ accounts with Amazon, Apple, and Barnes & Noble.

Assistant Attorney General Baer also discussed proposed mergers that would put the American public at risk of reduced competition and higher prices. Specifically, he noted AT&T’s proposed acquisition of T-Mobile. After finding that the deal could risk higher prices and worsened contract terms, the Department, along with the FCC, challenged the deal. AT&T subsequently abandoned the proposed acquisition, and as a result, “competition flourishes,” Baer said.

Lastly, Baer discussed criminal charges and fines imposed when consumers fell victim to price fixing and bid rigging. “Under the leadership of Attorney General Holder, we are prosecuting both companies and their executives for antitrust misconduct,” stated Baer. Specifically, Baer addressed the world-wide conspiracy to fix the prices of certain automobile parts, which made it more costly for companies to manufacture vehicles, and caused millions of Americans to pay higher prices. “As of today, we have obtained criminal convictions against 54 companies and individuals and nearly $2.4 billion in criminal fines,” Baer said. The fines are placed in the Justice Department’s Crime Victim’s Fund, which is used to assist victims of all types of crimes receive services and financial support to cope with their traumatic experiences and move forward. “We are proud that our antitrust enforcement efforts have contributed to helping our fellow Americans during their time of need,” said Baer.

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