COMPANY COULDN’T HAVE REPS ON BOARDS OF COMPETING COMPANIES
After the United States Justice Department objected to two directors serving on the boards of competing companies, the two individuals tendered their resignations from one of the entities involved.
Apparently, Advance Publications – a private media company – had designees on both the boards of Warner Bros. Discovery, Inc., and Charter Communications, Inc., which both provide video distribution services to customers. But because that simultaneous service was alleged by the DOJ to violate federal antitrust law, particularly Section 7 of the Clayton Act, the agency noted its objection and the resignations from Warner Bros. Discovery board ensued.
In a written statement, Deputy Assistant Attorney General Michael Kades of the Justice Department’s Antitrust Division noted that, “Today’s announcement is a win for consumers …. In enacting Section 8 of the Clayton Act, Congress was concerned that competitors who shared directors would compete less vigorously to provide better services and lower prices. We will continue to vigorously enforce the antitrust laws when necessary to address overreach by corporations and their designated agents.
They clearly needed to be above board there.
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