The Department of Justice ("DoJ") and Federal Trade Commission ("FTC") filed a Statement of Interest ("Statement") in a case in the Eastern District Court of Texas, marking their first submission to a federal court concerning the antitrust implications of common shareholdings.
The lawsuit, filed by the Texas Attorney General, alleges that BlackRock, State Street, and Vanguard leveraged their common stakes in competing coal producers to coordinate output reductions, thereby increasing energy prices.
The DoJ stated that institutional asset managers' use of common shareholdings in competing companies to coordinate reductions in output restricts competition and harms consumers. Citing the Supreme Court's view that social justifications cannot legitimize anticompetitive conduct, the DoJ emphasized its opposition to financial institutions undermining market competition under the guise of ESG strategies.
Ultimately, the Statement clarified that although passive investment may be exempt from antitrust scrutiny, it does not shield conduct that restrains market competition through common shareholdings.
(DoJ & FTC – 22.05.2025)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
