Federal Violation of the Antitrust Law

Federal Antitrust Defense Lawyer

Federal antitrust violations are among the most serious white-collar crimes prosecuted by the United States government.

The primary purpose of federal antitrust law is to protect competition, prevent monopolies, and ensure fair trade practices in the marketplace.

If you are under investigation for an antitrust violation, you may be facing felony charges, massive fines, and potential federal prison time. Early representation by an experienced federal criminal defense attorney is critical.

Your best hope for a favorable outcome is with an experienced criminal defense attorney at the Hedding Law Firm in Los Angeles. To schedule a consultation, call (866) 986-2092 or use the contact form here.

What Is a Federal Antitrust Violation?

A federal antitrust violation generally involves agreements or conduct that restrain trade, limit competition, or attempt to create a monopoly.

The primary criminal antitrust statute is the Sherman Antitrust Act.

Section 1 of the Sherman Act prohibits:

Price fixing
Bid rigging
Market allocation
Conspiracies that restrain trade

Section 2 prohibits:

Monopolization
Attempted monopolization

Antitrust violations are prosecuted by the Antitrust Division of the Department of Justice and enforced civilly by the Federal Trade Commission.

Criminal vs. Civil Antitrust Enforcement

Antitrust cases can be pursued in both civil and criminal court.

Criminal prosecution typically involves:

Intentional price fixing
Bid rigging schemes
Market allocation agreements
Hard-core cartel behavior

Civil enforcement may involve:

Mergers and acquisitions
Unfair trade practices
Exclusive dealing arrangements

Key federal statutes include:

Clayton Act
Federal Trade Commission Act

Criminal cases carry the most severe penalties.

DOJ Focus on Algorithmic Price Fixing

The DOJ has recently reaffirmed its position that algorithmic price fixing constitutes a per se violation of Section 1 of the Sherman Act.

Per se violations are considered automatically illegal, regardless of intent or justification.

According to the DOJ and FTC:

Using shared pricing algorithms among competitors may constitute unlawful coordination
Even indirect coordination through a third-party software provider may qualify as a conspiracy
Hub-and-spoke arrangements can create criminal liability

Algorithmic pricing tools that facilitate competitor coordination may expose companies and executives to criminal prosecution.

The DOJ considers these cases similar to traditional price-fixing agreements.

Penalties for Federal Antitrust Violations

Federal criminal antitrust penalties are severe.

An individual convicted may face:

Up to 10 years in federal prison
Fines up to $1 million

Corporations may face:

Fines up to $100 million
Additional penalties based on twice the gain or loss caused

Federal defendants must serve at least 85 percent of any prison sentence imposed.

Additional consequences may include:

Restitution
Civil lawsuits
Corporate compliance monitoring
Professional reputation damage

What Prosecutors Must Prove

To convict under the Sherman Act, prosecutors must establish:

An agreement between two or more parties
Intent to restrain trade
Impact on interstate commerce

In criminal cases, proof of knowing participation is essential.

Without proof of intent or agreement, the government's case may fail.

Common Defense Strategies in Antitrust Cases

Federal antitrust cases are complex and document-intensive.

Defense strategies may include:

Lack of Agreement

Demonstrating that no coordinated conspiracy existed

Independent Business Judgment

Showing pricing decisions were made independently

Insufficient Evidence

Challenging emails, communications, and economic analyses

No Intent to Restrain Trade

Demonstrating absence of criminal intent

Challenging Algorithmic Allegations

Showing technology was used independently without competitor coordination

Early intervention may prevent indictment or significantly reduce exposure.

Frequently Asked Questions

Is price fixing always criminal?

Yes. Price fixing among competitors is generally treated as a per se criminal violation.

What is a per se violation?

A per se violation is automatically illegal without need for further economic analysis.

Can algorithmic pricing tools lead to criminal charges?

Yes, if prosecutors believe the tools facilitated competitor coordination.

What should I do if contacted by federal agents?

Do not make statements. Contact a federal criminal defense attorney immediately.

Can antitrust charges be dismissed?

Yes, if prosecutors cannot prove agreement, intent, or conspiracy.

Los Angeles Federal Antitrust Defense Attorney

Antitrust investigations can threaten executives, corporations, and business professionals nationwide.

Hedding Law Firm represents individuals and companies throughout:

Los Angeles
Southern California
Federal courts across the United States

Our approach includes:

Immediate response to subpoenas
Detailed review of communications and contracts
Economic expert consultation
Strategic negotiation with DOJ prosecutors
Aggressive courtroom defense when necessary

If you are under investigation for a federal antitrust violation, contact our office immediately at 866-986-2092 for a confidential consultation.

Early action can dramatically impact the outcome of your case.

Antitrust Violations