NCJ Number
99848
Date Published
1985
Length
12 pages
Annotation
In the Reagan administration's second term, the Antitrust Division of the U.S. Justice Department intends to increase its effectiveness in detecting and prosecuting bid rigging; it will also pursue antitrust sentencing and legislative reform.
Abstract
Relying largely on tips and informants, the division has been particularly successful in prosecuting bid rigging in road and airport construction, electrical contracting, and utility construction. The division is currently planning to enhance its ability to detect collusive bid rigging schemes in military contracting. This will involve collaboration between the Departments of Justice and Defense. The courts' lenient sentencing of bid riggers has yielded meager deterrence value. The division plans to urge the U.S. sentencing commission to emphasize stiff fines and jail sentences for criminal antitrust behavior. An administration working group is also developing antitrust legislative reform proposals to submit to Congress in early 1986. The working group intends to examine the effect of treble damages, currently permitted in civil antitrust suits, on legitimate competition. There is evidence that such sizable damages inhibit appropriate competitive risktaking. A closely related problem is the filing of private antitrust suits to thwart legitimate actions by competitors. The division will encourage courts to scrutinize plaintiffs' standing to sue.