FTC, DOJ file statement of interest in case against BlackRock, State Street

The Federal Trade Commission, joined by the U.S. Department of Justice Antitrust Division, filed a Statement of Interest in a multistate antitrust case against asset managers BlackRock (BLK), State Street (STT), and Vanguard. The case, led by Texas Attorney General Ken Paxton, alleges that BlackRock, State Street, and Vanguard engaged in an anticompetitive conspiracy to drive down coal production as part of an industry-wide “Net Zero” initiative to further anti-coal Environmental, Social, and Governance goals. BlackRock, State Street, and Vanguard allegedly exercised their influence as shareholders in competing coal companies to push them to reduce industrywide coal output. The multistate lawsuit alleges that these actions, along with the unlawful sharing of competitively sensitive information and other allegations, increased coal prices and forced American consumers to pay more for energy as part of an unlawful left-wing ideological scheme. The FTC and DOJ filed their Statement of Interest given their strong interest in the correct application of the antitrust laws. The FTC and DOJ seek to protect markets from anticompetitive behavior that raises Americans’ energy bills while avoiding unnecessary interference with ordinary investment activity. “President Donald Trump understands the importance of coal for our energy security and has vowed to fight left-wing ideologues who seek to make us weaker and poorer under the guise of ESG. Today, the Federal Trade Commission carries out this administration’s mission to unleash American energy dominance, protect coal, and stop the left’s attempt to corrupt financial markets with political and social objectives,” said FTC Chairman Andrew Ferguson. The FTC and DOJ urged the U.S. District Court for the Eastern District of Texas to reject the asset managers’ claims, citing multiple errors of law regarding the application of the nation’s federal antitrust laws to the actions of institutional shareholders in their role as common owners.