Statement on the DOJ’s Latest Action Against Individuals Serving on Rival Corporate Boards
FOR IMMEDIATE RELEASE: October 20, 2022
CONTACT: Sandeep Vaheesan vaheesan@openmarketsinstitute.org
Statement from Open Markets Institute Legal Director Sandeep Vaheesan:
“Interlocking boards” have further concentrated power in our economy in the hands of an elite few.
WASHINGTON- Open Markets Institute released the following statement from Legal Director Sandeep Vaheesan regarding the Department of Justice announcement that seven directors have resigned from corporate board positions in response to concerns by the Antitrust Division that their roles violated the Clayton Act’s prohibition on interlocking directorates:
“The Open Markets Institute applauds the Department of Justice and Assistant Attorney General Jonathan Kanter for committing to end the harmful and illegal practice of individuals sitting on the boards of two or more rival corporations. Section 8 of the Clayton Act generally prohibits such “interlocking directorates” among competitors, which are a device for further concentrating power in the economy in the hands of an elite few. The recent resignation of seven directors from five corporations is an early payoff from the DOJ’s clear commitment to enforcing this law. With these resignations and AAG Kanter ready to vigorously enforce Section 8, powerful financial interests, including private equity firms, are on notice that they will not be able to consolidate and maintain control by creating interlocking directorates among competing firms. We hope to see the Department of Justice enforce Section 8 across the entire economy and hold all violators accountable.”
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