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MLex Market Insight

The DOJ’s fraught chicken-industry prosecution; and an EU court’s landmark M&A decision

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 22 July 2022

⏱️ 32 minutes

🧾️ Download transcript

Summary

In the US, the Department of Justice’s drawn-out criminal prosecution of chicken suppliers over cartel claims has come to an end — again. The acquittal of five industry executives marks the third time that the DOJ has prosecuted the men — a defeat that may prove damaging not just to the reputation of the DOJ’s antitrust division, but also to its ability to encourage whistleblowers to come forward in exchange for immunity deals. But this isn’t the end of the chicken price-fixing saga as prosecutors gear up for two more trials against other defendants in October and April. Also on the podcast: How an historic EU court ruling on Illumina-Grail deal is likely to boost the European Commission’s confidence in tackling deals targeting smaller companies.

Transcript

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0:00.0

Hello, it's great to be with you again.

0:12.5

This is Emlex's podcast, ready to recap another crazy busy week in regulatory affairs with

0:18.4

help from our team of reporters around the globe.

0:21.5

My name is James Panicki. I'm Emlex's Asia Pacific Senior Editor. And where to start this week?

0:27.4

Well, you don't have to be an MLEX subscriber to know that Illumina's $8 billion

0:32.2

US dollar takeover of cancer testing company Grail has gone through an interesting process of late.

0:38.6

It's not so much the European Commission's review of the deal,

0:41.9

although that is still unfolding and it may yet have some drama in store for us.

0:47.1

What's more important is an EU court's ruling on whether the European Commission

0:51.5

indeed even has the right to vet the acquisition.

0:55.6

Natalie McNeilis will walk us through the ins and outs of that decision in just over 10 minutes from now,

1:01.1

and there is so much to discuss.

1:03.5

First up, though, to the US, and yes, it's time to throw some chicken into the regulatory frying pan

1:08.9

because five chicken industry executives have been acquitted in a criminal price fixing trial this month.

1:16.0

It wasn't the first time they'd face prosecution, courtesy of the Department of Justice, and it wasn't the first time that they had prevailed.

1:23.7

So what does the DOJ's defeat say about Assistant Attorney General Jonathan Cantor's campaign to get tough on antitrust violations?

1:33.1

Our coverage of this case came to you courtesy of Mike Acton in San Francisco and Cushita Vassant in Washington, D.C.

1:40.3

And they are with us now, both in spirit and in person.

1:46.3

Now, Mike, let me start with you,

1:52.6

given that you covered the early stages of this. What do we need to know about the DOJ investigation and what had those executives actually been accused of? So they were accused of being involved

1:59.2

in an industry-wide conspiracy over a number of years

2:02.7

from around 2012 to around 2018 to fix the prices of chicken.

...

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