Articles Posted in Antitrust News

Antitrust News: DOJ Antitrust Will Try to Speed Merger Reviews

November 18, 2017 | Bona Law PC

Antitrust News is a new feature at The Antitrust Attorney Blog. We will periodically report on and address new developments in the antitrust world, from FTC or DOJ guidance to important court decisions to relevant legislative developments to worldwide antitrust issues.

Although some of our prior articles involve antitrust developments, most of these posts consist of content that is less timely and more evergreen. Our intent is to help our readers by describing Antitrust News through the filter of our antitrust expertise.

On November 16, 2017 in Washington, DC, Deputy Assistant Attorney General Donald G. Kempf, Jr. made news about antitrust merger review at the American Bar Association’s Antitrust Fall Forum.

Kempf said—simply—that the DOJ will try to shorten the time it takes it to review mergers for antitrust and competition issues. In 2011, the average merger took just over 7 months to review. In 2016, the review time increased to 11.6 months on average.

That is unacceptable. Companies that want to merge should not have to wait almost full year to do so. A lot can happen in a year, particularly now where technology and low entry barriers mean that entire markets often change in a short period of time.

How did the excess delays happen?

To explain, let’s back up and explain—briefly—how an antitrust merger review works:

The merging parties begin by completing what is called a Hart-Scott-Rodino (HSR) filing. Either the DOJ or FTC has 30 days to decide whether to issue what is called a second request. If one of the antitrust agencies thinks that there could be genuine competition issues for the merger, they may issue this second request, which opens up a heavy set of fact-finding, including document production.

At some point, the antitrust agencies may either approve the merger, reach an agreement with the parties to approve the merger with certain requirements (like selling assets) or (in the case of the DOJ) to seek a preliminary injunction stopping the merger.

According to Kempf, over time the second request period increased in scope and complexity and the preliminary injunction hearings became mini-trials. Indeed, they often have the same effect as a trial on the merger because if the DOJ wins, the parties often abandon the merger. If the DOJ loses, it often halts the challenge.

Kempf went on to articulate why shortening merger review time is so important. His best line was that “delaying competitive mergers is anticompetitive, and that’s not the business the Antitrust Division wants to be in. Just the opposite.”

He offered five suggestions to shorten antitrust merger reviews: Continue reading →

California Federal Court Rejects Class Certification in Lithium Ion Batteries Antitrust Litigation

April 24, 2017 | Bona Law PC

If you are the antitrust lawyer for a defendant in a class action, defeating class certification is a major victory—usually a complete victory, pending appeal.

You can read a more complete description of the requirements for class certification in our article on the class action antitrust case of Comcast v. Behrend.

But before we talk about the North District of California’s class certification decision in In re Lithium Ion Batteries Antitrust Litigation, we will hit the highlights of the most common dispute in these type of cases.

Update: You can read our updated article on the court’s denial of plaintiffs’ renewed motion for class certification here.

It is also important that you know that, as of the date of this blog post, Bona Law represents a defendant in the In re Capacitors Antitrust Litigation, which also will involve a class certification motion from plaintiffs and similar issues. So please evaluate anything I write with that in mind.

In fact, even though we will represent businesses as either plaintiffs or defendants in competitor antitrust litigation, Bona Law will not—except in rare or unusual circumstances—represent a class action of plaintiffs in an antitrust action (at least as of now). We will, however, represent defendants in antitrust class-action cases, as I have many times over my career.

To learn more about how Bona Law handles the defense of complex antitrust class actions, including MDL cases, read here.

So, the bottom line, is that I come to these issues from the perspective of an antitrust attorney representing defendants in class action litigation. It is a good practice when reading anything to always understand the perspective of the writer, to understand biases, blind spots, or how their experiences can cloud their explanations. I do my best at The Antitrust Attorney Blog to provide useful information rather than propaganda or corporate double-speak, but I am human with all of the weaknesses and limitations that come with that.

If you want to read about how alleged anticompetitive conduct morphs into a significant antitrust class action, check out our prior blog post.

Common Class Certification Issues

Every case is different, of course, but here is what usually matters most at the class-certification stage of antitrust class-action litigation:

Plaintiffs will collect a lot of transactional data and other discovery from defendants. They will pass that on to their expert economists, who will submit a report that plaintiffs need to satisfy the elements of class certification—which is their burden. Defendants, of course, have their own expert who will attack plaintiffs’ experts and often present their own economic theories.

The primary issue in dispute is usually whether common issues predominate over individual issues—from Federal Rule of Civil Procedure, Rule 23(b)(3). And the most likely disputed issue that may be either common or individual is the impact or damages from the alleged anticompetitive conduct.

The Court is not tasked with determining the merits—including whether there was, in fact, an antitrust conspiracy—so the parties will often at this stage fight over whether if there were a conspiracy, the plaintiffs’ experts can establish a reliable methodology to show that there is a common impact to the many class members. Of course, issues of merits are usually entangled within the class-certification questions.

Another issue that is increasingly important in antitrust class actions is typicality—whether the named or representative class members are “typical” of the unrepresented members of the class.

This battle usually happens on two fronts during class certification: (1) motions to strike the plaintiffs’ expert economists’ testimony for lack of reliability or something similar; and (2) whether plaintiffs can satisfy the elements for class certification.

That, in fact, was where the parties fought in the papers for class certification of the Lithium Ion case.

Class Certification Decision for In re Lithium Ion Batteries Antitrust Litigation

The Lithium Ion Batteries case involves allegations by named class members of a multi-year, international price-fixing conspiracy among Japanese and Korean manufacturers (and their American subsidiaries) of lithium ion battery cells.

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The Senate Should Confirm Supreme Court Justice Nominee Judge Neil Gorsuch Because he is a Good Writer with Antitrust Experience

February 4, 2017 | Bona Law PC

Update: As you may have heard, the Senate confirmed Judge Neil Gorsuch to the U.S. Supreme Court. Read below for my thoughts on the confirmation process and Justice Gorsuch and antitrust.

We have entered a Supreme-Court-Justice-Nomination season. These are always interesting times for lawyers, politicians, and real people.

There are only nine Justices on the Supreme Court, so whenever there is an opening, it is a big deal. Appointments are for life, or until a Justice wants to leave, for whatever reason (or impeachment, but we haven’t had to worry about that lately). So the nomination seasons are whenever they are.

For lawyers, it is the rare time when the rest of the country cares about what they care about. Thus, news talk shows and articles are full of attorney quotes, ideas, and predictions about, first, who they think the nominee will be; and second, after the name is known, whether that person is qualified.

A Supreme Court Justice, as a job, is not an easy one. Sure, it comes with some perks like lifetime appointment, cool robes, and the right to interrupt attorneys whenever you want. But it is a lot of pressure because you are making decisions in a wide variety of legal subjects, covering constitutional, statutory, and even federal common law, each of which may create upheavals for huge groups of people.

As a Justice, you can’t afford the time to become and stay an expert in every area of law, but you (and your Justice colleagues) are making decisions that set the parameters for all legal fields, even over experts in those fields. Some may say that this is a feature not a bug. But, from the perspective of the individual Justice, it creates an enormous responsibility to think through everything you do. You can’t just take an opinion off.

Because of the impact and responsibility of a Supreme Court Justice, this isn’t a job for anyone. You have to love the law and want to contribute positively to it—in a way that might even seem a little obsessive.

So let’s talk about qualifications: At least since I’ve been following it, it is unusual to see a nominee for the US Supreme Court that isn’t qualified to work on the Court. That is, the qualifications of the men and women that Presidents of both parties have nominated over the last couple of decades have been impressive and adequate for the extremely high standards of the Court. That includes DC Circuit Judge Merrick Garland.

But, unfortunately, the word “qualifications” has become a word that every side, at one time or another, has lifted to mean “I think will do what I want on the rare controversial case that could likely go either way on the law,” or some other interest-focused meaning.

That is because most people, especially people on television, don’t like to just say, honestly, that they support or oppose a particular nominee for pure reasons of self or philosophical interest. Instead, they filter out their own biases by using the word “qualified” or “not-qualified,” or “extremist” or some other mismatched word. The reasons for this probably range from cognitive dissonance to political marketing.

President Donald Trump Nominates Judge Neil Gorsuch to the US Supreme Court

Thanks for sticking around through that long-winded introduction. I added the context I wanted to add, so I can now speak (well, write) more transparently.

Judge Gorsuch is a federal appellate judge on the Tenth Circuit Court of Appeals (which hears appeals from district courts in Colorado, Kansas, Oklahoma, New Mexico, Utah, and Wyoming). He has a BA from Columbia, graduated from Harvard Law in 1991 (exactly one decade before I did), and has a Doctor of Philosophy Degree in Law from Oxford. He clerked on the DC Circuit with Judge David B. Sentelle, then clerked on the United States Supreme Court with both Justices Byron White and Anthony Kennedy. He later worked with the Department of Justice and for many years at a strong law firm.

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