The Federal Trade Commission (FTC), in collaboration with the U.S. Department of Justice (DOJ) Antitrust Division, has filed a Statement of Interest in an antitrust case involving BlackRock, State Street, and Vanguard. The case, spearheaded by Texas Attorney General Ken Paxton, accuses these asset managers of conspiring to reduce coal production as part of a "Net Zero" initiative aimed at promoting Environmental, Social, and Governance (ESG) goals.
According to the lawsuit, BlackRock, State Street, and Vanguard used their shareholder influence in competing coal companies to curtail industry-wide coal output. The multistate lawsuit claims that these actions led to increased coal prices and higher energy costs for American consumers as part of what is described as an unlawful ideological scheme.
The FTC and DOJ have filed their Statement of Interest due to their vested interest in ensuring proper application of antitrust laws. Their aim is to protect markets from behavior that could raise energy bills while avoiding undue interference with standard investment activities.
FTC Chairman Andrew Ferguson stated: “President Donald Trump understands the importance of coal for our energy security and has vowed to fight left-wing ideologues who seek to make us weaker and poorer under the guise of ESG. Today, the Federal Trade Commission carries out this administration’s mission to unleash American energy dominance, protect coal, and stop the left’s attempt to corrupt financial markets with political and social objectives.”
In their statement, the FTC and DOJ urged the U.S. District Court for the Eastern District of Texas to dismiss the asset managers' claims due to alleged legal errors concerning federal antitrust law application regarding institutional shareholders' actions.
The Statement of Interest asserts that asset managers can be held accountable under Section 7 of the Clayton Act if they use stock holdings across competitors for anticompetitive purposes. While recognizing these managers' significant role in capital markets—a role they intend to safeguard—the agencies emphasize adherence to antitrust laws.
Additionally, it affirms that public initiatives can still breach Sherman Act and Clayton Act regulations even when justified by social concerns.
The FTC's decision authorizing staff filing was unanimous among voting members at 2-0-1; Commissioner Melissa Holyoak abstained from voting.
The Federal Trade Commission remains dedicated to developing policies impacting competition and consumer interests within America's economy. They emphasize that they will never solicit money or make threats through communication channels like social media updates or blogs on consumer alerts.
