Durbin Urges DOJ, FTC To Investigate Interlocking Directorates In The Life Science Industry
WASHINGTON – U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, sent a letter to the Department of Justice (DOJ) and Federal Trade Commission (FTC) encouraging them to use the authorities granted to them under the Clayton and FTC Acts to appropriately investigate interlocking directorates in the life science industry and take all necessary steps to combat this anticompetitive practice. An interlocking directorate occurs when an individual simultaneously serves on multiple corporate boards of directors. The practice can raise competition concerns, particularly when the individual serves on the boards of companies in the same industry or where the companies are competitors. Recent research suggests that anticompetitive interlocking directorates frequently happen in the life science industry, potentially resulting in coordination on pricing and other decisions that result in consumer harm. Under the Clayton Act, it is illegal for a person
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