NCJ Number
47447
Date Published
1978
Length
25 pages
Annotation
FEDERAL ANTITRUST POLICY FROM 1970 THROUGH FISCAL 1977 IS DISCUSSED. TRENDS IN REGULATORY REFORM, CRIMINAL ENFORCEMENT, AND INTERAGENCY AND LEGISLATIVE ADVOCACY IN THE ANTITRUST DIVISION (AD) ARE EXAMINED.
Abstract
A MAJOR CHANGE IN ENFORCEMENT POLICY HAS BEEN A GREATER ANTITRUST ACTIVITY AT THE STATE LEVEL. IN FISCAL 1977, THE DEPARTMENT OF JUSTICE PARTICIPATED IN OVER 400 REGULATORY PROCEEDINGS BEFORE NEARLY EVERY FEDERAL AGENCY. THE BASIC GOAL OF DEPARTMENT PARTICIPATION IS TO KEEP THE AGENCIES FOCUSED ON THE LEAST NONCOMPETITIVE METHODS FOR ACCOMPLISHING THEIR STATUTORY MANDATES. FOR EXAMPLE, ONE OF THE MOST ACTIVE REGULATORY PROGRAMS INVOLVES WORK BEFORE THE INTERSTATE COMMERCE COMMISSION AND CONCERNS TRUCKING. TRUCKING REGULATIONS AND PROCEDURES ARE COSTING BILLIONS OF DOLLARS PER YEAR AND YET THEIR PUBLIC BENEFITS ARE DIFFICULT TO PROVE. THE DEPARTMENT HAS BEEN ARGUING FOR MORE FLEXIBILITY IN ENTRY AND RATES, LESS REGULATION, AND GREATER FREEDOM AND INCENTIVE FOR COMPETITION IN THE TRUCKING INDUSTRY. A SIMILAR COURSE IS BEING FOLLOWED IN THE AIRLINE INDUSTRY IN WORK BEFORE THE CIVIL AERONAUTICS BOARD AND IN OCEAN SHIPPING. ADDITIONAL INTERAGENCY WORK HAS BEEN CONCERNED WITH REGULATORY POLICIES IN THE AREA OF ENERGY RESOURCES, AN AREA WHICH WILL PROBABLY BECOME INCREASINGLY IMPORTANT IN THE FUTURE. THIS FOCUS ON ANTITRUST ENFORCEMENT AND REGULATORY REFORM IN REGULATED INDUSTRIES IS QUITE PROBABLY THE SINGLE MOST SIGNIFICANT CHANGE IN THE ANTITRUST DIVISION IN THE PAST DECADE. IN THE PAST 7 YEARS, THE DIVISION HAS GROWN, AND THE STAFF COMMITTED TO REGULATORY MATTERS HAS QUADRUPLED. IN ADDITION, ABOUT 25 PERCENT OF THE DIVISION'S TIME AND TALENT IS DEDICATED TO LEGISLATIVE ADVOCACY. BY TARGETING THE REGULATORY INDUSTRIES, INDUSTRY COMPLIANCE COSTS CAN BE REDUCED AT EVENTUAL SAVINGS TO THE PUBLIC. A SECOND MAJOR CHANGE HAS BEEN INCREASING CRIMINAL ENFORCEMENT. FROM 1970 THROUGH 1973, THE DIVISION BROUGHT 64 MERGER CASES AND 52 CRIMINAL CASES, WHILE FROM 1974 THROUGH 1977, THERE WERE 29 MERGER CASES AND 128 CRIMINAL CASES. IN THE LAST FEW YEARS, AN EMPHASIS HAS BEEN ON UNCOVERING AND PROSECUTING PRICE-FIXING VIOLATIONS. IT IS HOPED THAT CRIMINAL PROSECUTION AND CONVICTION WILL RAISE THE VISIBILITY OF THE PROBLEM AND RESULT IN A GREATER DETERRENT EFFECT. CRIMINAL SENTENCING GUIDELINES RECOMMENDING SUBSTANTIAL SENTENCES HAVE ALSO BEEN FORMULATED AND ARE BEING FOLLOWED AS PART OF THE DIVISION'S EFFORTS. IT IS CONCLUDED THAT THROUGH BROAD-SPECTRUM PARTICIPATION, REGULATORY REFORM, CRIMINAL ENFORCEMENT, AND INTERAGENCY AND LEGISLATIVE ADVOCACY, THE ANTITRUST DIVISION HAS BECOME A TRUE COMPETITION ADVOCACY AND CONSUMER PROTECTION AGENCY.