COVID-19 Crisis Increases Risk of Antitrust and Price Gouging Violations: Practical Guidance and Mitigation Strategies
K&L Gates LLP - By Lauren Norris Donahue, Brian J. Smith, Christopher S. Finnerty, Jack S. Brodsky
The impacts of the COVID-19 pandemic are affecting nearly every industry around the world, creating unprecedented issues and challenges for businesses. Given these challenges, it is understandable if antitrust compliance is not likely top of mind for most business. However, companies that (1) recognize the increased risk of antitrust and price gouging infringements during this period of economic volatility; (2) understand where those risks are highest in their organization; and (3) take reasonable steps to mitigate that risk will be better positioned for the future and more likely to avoid significant penalties arising from any violations. Below, we explain why the COVID-19 crisis increases the risk of anticompetitive and price gouging violations and enforcement; discuss high-risk conduct that could lead to allegations of price gouging, price-fixing, bid-rigging, or market allocation; describe the types of competitor collaborations that would not run afoul of the antitrust laws, including new guidance from the U.S. antitrust agencies issued on March 24 regarding collaborations of businesses working to protect the health and safety of Americans during the COVID-19 pandemic; and provide practical guidance for mitigating the risk of infringement during the COVID-19 crisis.