On September 28, 2023, the Department of Justice (DOJ) made a significant stride in its ongoing battle against anti-competition practices by launching a civil suit against a benchmarking service provider. This move signals a renewed focus and crackdown on benchmarking practices that involve the exchange of competitively sensitive information.
According to an update from Allen & Overy LLP, the justice department’s complaint alleges that the benchmarking service unlawfully facilitated the exchange of competitively sensitive operations and sales information among competing subscribers.
This violation is in contravention of Section 1 of the Sherman Act, a landmark United States antitrust law that prohibits certain business activities that the federal government regulators deem to be anti-competitive, and requires the federal government to investigate and pursue trusts. It is becoming increasingly clear that third-party information benchmarking will be under intense scrutiny going forward. Legal professionals in corporations and law firms need to be updated with this material change in the legal landscape.
Moving ahead, it will be perhaps more crucial than ever for businesses and law practitioners alike to pay careful attention to the DOJ’s treatment of such benchmarking services, as this lawsuit could well be indicative of stricter oversight and enforcement on anti-competitive practices in the future. In a professional landscape where information is often king, corporations and their counsels need to remain abreast of these emerging legal trends to ensure compliance while fosterinn business growth.