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MLex Market Insight

US antitrust community rocked by allegations of political interference in DOJ decision-making

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 3 July 2020

⏱️ 16 minutes

🧾️ Download transcript

Summary

The notion that decisions on antitrust investigations and merger reviews are made by the US Department of Justice at arm’s length from politics was challenged last month, with whistleblowers in the department suggesting the Trump administration interfered with the process. DOJ prosecutor John Elias told a US Congressional hearing about interference by DOJ leadership in decisions to open multiple investigations. The first was a probe of the car industry, following a deal struck by the state of California with four automakers on emissions standards — something that irked President Donald Trump. The second was an intervention by Attorney General William Barr to initiate burdensome reviews of 10 different acquisitions involving legal marijuana companies.

Transcript

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0:00.0

Hello, welcome to another MLEX podcast. My name is James Panicki from Mlex's Asia-Pacific

0:16.1

editorial team. It's great to be with you again to talk about all of the big regulatory

0:20.4

issues of the moment.

0:22.6

And in the US, our beat has been dominated in recent weeks by whistleblower allegations,

0:28.8

suggesting that antitrust work being carried out by the Federal Department of Justice,

0:33.8

the DOJ, may have been on the receiving end of political interference.

0:38.3

Now, foreign observers know that some degree of politicisation of US institutions

0:43.3

through presidential appointments can be expected, but these revelations go much further than that.

0:49.3

Joshua Sisko is Emlex's chief antitrust correspondent based in San Francisco. He's been covering congressional

0:56.1

hearings along with our M&A reporter Jenna Ebersole, who's based in Washington, D.C. Jenna's away at the

1:02.2

moment, but Joshua is very much with us. Now, Josh, let's set the scene first. Who are the DOJ

1:09.4

whistleblowers? And what did they have to say last week?

1:13.3

So there was a pair of men testifying before the House Judiciary Committee last week.

1:18.1

The main event, well, depends on your point of view, but one of the two people was a man named

1:23.2

Aaron Zelensky, who was on the former special counsel Robert Mueller's team of prosecutors

1:30.3

investigating Russian influence in the last presidential election.

1:36.3

But the other person testifying was a man named John Elias, who is a longtime antitrust

1:42.3

division prosecutor. He's worked on a number of teams, including

1:45.9

with front office division leadership. He's been there for many years. I think he started in the

1:53.0

George W. Bush administration and has worked through Obama and into the current administration.

2:00.2

So he's a career official.

2:03.2

He was formerly the chief of staff

...

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