As COVID-19 has become a global pandemic, nervous Americans are running to stores to stock up on food, cleaning supplies and safety products, leaving stores struggling to keep up with the demand. Medical facilities are worried about shortages of medical supplies and equipment. At the same time as Americans are stocking up, they are hunkering down and canceling travel and discretionary purchases and services, driving down demand and leaving an oversupply in other industries. The COVID-19 crisis has quickly upended typical supply and demand. Businesses can face increased antitrust risk as they struggle to continue operations, and they can expect federal and state authorities to be paying close attention.

In response to the COVID-19 crisis, the U.S. Department of Justice recently announced its intention to hold accountable anyone who violates the antitrust laws in connection with the manufacturing, distribution or sale of public health products. Attorney General William Barr said, “The Department of Justice stands ready to make sure that bad actors do not take advantage of emergency response efforts, health care providers or the American people during this crucial time.” The department said the Antitrust Division’s recently launched procurement collusion strike force (PCSF) will be on high alert for collusive practices in the sale of such products to federal, state and local agencies. The PCSF is described as leading a coordinated national response to combat antitrust crimes and related schemes in government procurement, grant and program funding at all levels of government—federal, state and local. The department has actively enforced the antitrust laws in response to previous natural disasters and financial crises, and we can expect similar scrutiny now.

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