Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Utah Declares Antitrust Violations to Be Third Degree Felonies, Removes Possibility of Imprisonment, (May 8, 2013)

By Tobias J. Gillett, J.D., LL.M.

Beginning next week, the state of Utah will classify a violation of its antitrust law as a third degree felony. Recently approved legislation will modify the state’s antitrust law to clarify the category of crime into which an antitrust violation falls, and alter the punishment for a violation to remove the possibility of imprisonment. The legislation was signed by the Governor of Utah on March 28, 2013, and will become effective on May 14, 2013.

The antitrust law previously stated that a person who violated the law "by price fixing, bid rigging, agreeing among competitors to divide customers or territories, or by engaging in a group boycott with specific intent of eliminating competition shall be punished," but did not categorize the violation. The new legislation modifies that section to specify that a person who violates the law in the listed ways will be "guilty of a third degree felony."

The law also previously stated that an individual who committed a violation could be punished by "a fine not to exceed $100,000 or by imprisonment for an indeterminate time not to exceed three years, or both." The new legislation removes the language concerning imprisonment, and the antitrust law will now only subject an individual to "a fine not to exceed $100,000." The punishment for "a person other than an individual" will remain "a fine not to exceed $500,000."

The Utah House passed the bill by a vote of 73-0, with two not voting, while the Utah Senate passed the bill by a vote of 22-0, with seven not voting.

News: Antitrust UtahNews