The Department of Justice (DOJ), in collaboration with the Federal Bureau of Investigation (FBI), announced on Thursday that it will be investigating entities that may be exploiting supply chain issues caused by the COVID-19 pandemic.
According to a statement, the DOJ’s Antitrust Division will prioritize existing investigations of collusion and potential violations of antitrust laws “in industries particularly affected by supply disruptions.”
Justice Department probing supply-chain disruptions, targeting companies exploiting the crisis to charge more https://t.co/6fgir4lHXJ
— Fox News (@FoxNews) February 18, 2022
“Temporary supply chain disruptions should not be allowed to conceal illegal conduct,” DOJ Antitrust Division Assistant Attorney General Jonathan Kanter said in a statement. “The Antitrust Division will not allow companies to collude in order to overcharge consumers under the guise of supply chain disruptions.”
The two agencies will work together to prosecute companies and individuals involved in colluding to fix prices or wages, rig bids, or allocate markets.
“The lingering challenge of supply chain disruptions from the COVID-19 pandemic has created an opportunity for criminals to fix prices and overcharge customers,” said FBI Criminal Division Assistant Director Luis Quesada. “The FBI and our law enforcement partners will continue to collaborate and investigate schemes that violate our antitrust laws and stifle our economic recovery.”
The DOJ has also formed a group with countries such as the U.K., Canada, Australia, and New Zealand that will share intelligence and utilize other methods to detect global collusion schemes.
This comes after some businesses have allegedly taken advantage of the pandemic to make more money despite industries coming up with new ways to combat supply chain issues and rising prices.
The White House is facing pressure to address the inflation rate as consumer prices increased by 7.5 percent from January 2021 to January 2022, a near-record high, according to Labor Department data.
Oil producers, ocean carriers, meat processing companies, and other industries saw their profits triple during supply chain congestion, which the Biden administration has criticized.
Governments have previously targeted unfair pricing on hand sanitizers, personal protective equipment, and other products meant to reduce transmission of the virus.
The DOJ is asking anyone with information regarding price hiking, bid-rigging, or market market-allocation agreements to call the Antitrust Division’s Citizen Complaint Center or visit the department’s official website.