When a business faces allegations of antitrust violations, it’s crucial to respond swiftly and strategically. 

One of the most common antitrust issues is price fixing, where companies conspire to set prices at an artificial level, distorting market competition. For example, in February 2023, two Amazon marketplace sellers and four of their companies admitted to engaging in price fixing for DVDs and Blu-ray discs, leading to inflated prices that harmed consumers. Another key concern involves exclusive dealing agreements, which require distributors to source products exclusively from a single supplier. Such agreements may be illegal if they significantly restrict competition by limiting market access for rival businesses. 

To effectively address allegations of antitrust violations, companies should:

• Cooperate with regulatory authorities: maintain transparency and demonstrate a commitment to compliance when dealing with investigations by agencies like the Department of Justice (DOJ) of the Federal Trade Commission (FTC).  The DOJ has been particularly vigilant in prosecuting price fixing schemes involving online marketplaces like Amazon. In one notable case, Amazon agreed to pay 2.25$million in January 2022 and discontinue its “sold by Amazon” program following an investigation into allegations of price manipulation. 

• Consult legal experts: engage antitrust attorneys to evaluate potential liabilities and develop a defense strategy. 

• Conduct internal compliance audits: assess existing business practices, pricing policies and contractual agreements identify and correct potential antitrust risks. 

• Review and adjust contracts: amend agreements, particularly those related to pricing and distribution to ensure they don’t contain anti competitive provisions.

• Ensure fair competing exclusive distribution agreements: businesses with exclusive distribution arrangements should verify that their agreements don’t unfairly limit competition or create barriers for new entrants. While such deals are generally legal, they may raise antitrust concerns if they significantly restrict market access for competitors. 

By taking proactive steps, businesses can mitigate risks and ensure compliance with antitrust laws.