WASHINGTON-The wireless industry and other business sectors face stiffer penalties for antitrust violations under a new bill sponsored by Sens. Mike DeWine (R-Ohio) and Herb Kohl (D-Wis.).
“Recently, we’ve been reminded how damaging white-collar crime can be to consumers, employees and investors,” said DeWine, chairman of the Senate Judiciary subcommittee on antitrust, competition and consumer rights. “Antitrust violations are just as serious as other white-collar crimes. The bill we have introduced . addresses antitrust violations by both increasing the penalties against offenders and increasing the incentives for those who assist in investigations.”
The two lawmakers introduced the bill yesterday.
“Each of the three reforms included in this bill are important measures that will significantly enhance the enforcement of our nation’s antitrust laws,” said Kohl, ranking minority member of the Senate antitrust panel.
The measure includes the following provisions:
Criminal Penalties. The bill would increase the maximum prison sentences for antitrust violations to 10 years from the current maximum sentence of three years. The bill raises the maximum fine for individuals from $350,000 to $1 million. Under the bill, maximum fines for corporations that violate the Sherman Act are raised to $100 million from the current $10 million maximum. Congress last raised the maximum fines for both corporations and individuals in 1990. Congress last increased the maximum prison sentences in 1974.
Tunney Act Reform. The bill would provide for greater scrutiny by courts of settlements in the Department of Justice’s civil antitrust cases by enhancing the authority of courts to review those settlements under the Tunney Act.
Single Damages for Corporations that Cooperate with Investigations. The bill would encourage more corporations to give the Department of Justice information about antitrust conspiracies by limiting the civil liability of corporations that take part in the Department of Justice’s corporate leniency program. Under the existing corporate leniency program, the Department of Justice agrees not to prosecute corporations that provide critical information about antitrust conspiracies. This bill limits the civil liability of corporations that take part in the leniency program. In exchange for this limitation, the corporations must pay restitution to private plaintiffs and assist the private plaintiffs in other antitrust lawsuits. Under existing law, without the Single Damages provision, corporations are liable for triple the damages caused by every member of the conspiracy.
