US government authorities are accusing the asset management giants BlackRock, State Street and Vanguard of colluding against the coal industry.
In November of last year, 11 state attorneys general, led by Texas AG Ken Paxton, accused the three financial firms of engaging in an anticompetitive conspiracy to drive down coal production.
[adinserter block="1"]The attorneys general allege the firms tapped their influence as shareholders in competing coal companies to reduce industrywide coal output, illegally sharing competitively sensitive information in the process.
Now, the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) have filed a “Statement of Interest” in support of the AGs’ case.
The federal officials argue that BlackRock, State Street and Vanguard’s alleged conduct increased energy prices for consumers and businesses.
“This case is not about ordinary activity by asset managers such as passive index investing or even pro-competitive activism. As alleged, the holders of large quantities of stock in competing companies agreed to use those shareholdings to reduce the output of US coal to increase profits at the expense of American consumers and businesses. This case is about precisely the sort of conduct, including concerted efforts to reduce output, which have long been condemned under the antitrust laws.”
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