“By the Justice Department’s calculations, Keyspan’s anti-competitive actions resulted in it receiving almost $49 million. The settlement submitted by the Justice Department would let Keyspan keep $37 million from its anti-competitive actions. Netting $37 million for anti-competitive conduct is not a penalty, it is not a deterrent, it is a reward.”
“Anything short of a $49 million fine will not deter the next power trader who thinks up another new way around market rules,” he added.
That’s me, quoted in a U.S. Law Week article about United States v. Keyspan: “DOJ Wins Sherman Act Disgorgement, Appears to Loosen Policy Against Remedy.” (Subscription required.)
The article also quotes Harvard Law professor Einer Elhauge, who has written about disgorgement as an antitrust remedy.
Earlier at Knowledge Problem: United States v. KeySpan Corporation antitrust case settles for paltry $12 million.