Strategic Comity

Abstract

Section 1 of the Sherman Act prohibits "[e]very contract, combination... or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations. "This broad statutory language has enabled U.S. agencies and courts to apply the Sherman Act extraterritorially, including to cartels organized outside the United States. Recently, the major cross-border cartel investigations initiated by the Department of Justice into price fixing in air cargo, auto parts, liquid crystal display panels, and freight forwarding, as well as investigations into the manipulation of the London Interbank Offered Rate and foreign exchange rates, have all focused on foreign cartel conduct.