NAAG Asks Congress to Support State Antitrust Efforts

As Congress once again considers antitrust reform measures that will have significant impacts on our citizens and business communities for years to come, we encourage you to enhance the antitrust enforcement capabilities of the states, in addition to federal agencies. We thank you for your leadership on this important matter.

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NAAG Urges Facebook to Abandon Plans to Develop Instagram Kids

It appears that Facebook is not responding to a need, but instead creating one, as this platform appeals primarily to children who otherwise do not or would not have an Instagram account. In short, an Instagram platform for young children is harmful for myriad reasons. The attorneys general urge Facebook to abandon its plans to launch this new platform.

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NAAG Submits Comment Letter on Beneficial Ownership Regulations

Our comments are consistent with the sense of Congress, which requires that regulations “to the greatest extent practicable… collect information in a form and manner that is reasonably designed to generate a database that is highly useful to… law enforcement agencies…” NDAA § 6402(8)(C).

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NAAG Endorses EAGLES Act

No one person or entity can achieve these goals alone. Preventing targeted violence demands a multi-faceted approach toward a solution and calls for coordination among law enforcement officials, lawmakers, educators, parents and students, and community members. Moreover, reducing targeted violence in our schools requires partnership between state and federal agencies – precisely the type of collaboration contemplated by the EAGLES Act.

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Attorneys General Urge Senate to Pass Law to Fight Shell Companies

As our States’ chief legal officers, we are concerned about the use of American financial institutions for money laundering by terrorist groups and other criminal enterprises.

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NAAG Endorses Stopping Overdoses of Fentanyl Analogues (SOFA) Act

States and localities are on the front line of this crisis and are a large part of winning the battle from both a law enforcement and public health perspective.

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Puerto Rico v. Beltran et al.,

Puerto Rico filed administrative charges against 34 school bus contractors who provided services to the state Department of Education, alleging that they agreed to fix prices and reduce services to a number of municipalities, as well as limiting geographic markets. the parties paid $170,000 and agreed to injunctive provisions to prevent future violations.

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Maryland et al. v. Perrigo Company, No. 1:04CV01398 (D.D.C. Aug. 17, 2004)

The FTC and states alleged that the companies had entered into a “pay-for-delay” arrangement, whereby Perrigo paid Alpharma to withdraw its generic version from the market for Children’t ibuprofen.According to the complaint, in June 1998, Perrigo and Alpharma signed an agreement allocating to Perrigo the sale of OTC children’s liquid ibuprofen for seven years. In exchange for agreeing not to compete, Alpharma received an up-front payment and a royalty on Perrigo’s sales of children’s liquid ibuprofen. The FTC received $6.25 million to compensate injured consumers. The states received $1.5 million in lieu of civil penalties. the parties were enjoined from future agreements.

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Wal-Mart Stores, Inc. v. Rodriquez, No. 02-2778 (D.P.R.) and Estado Libre Asociado v. Wal-Mart Puerto Rico, Inc., No. 02-2847 (P.R. Ct. First Instance) (Feb. 28, 2003)

Puerto Rico challenged acquisition by Wal-Mart of supermarket chain in Puerto Rico. After the enforcement action was enjoined by the U.S. District Court, Puerto Rico appealed. Twenty states filed an amicus brief supporting Puerto Rico’s ability to challenge the transaction regardless of the actions of the FTC. While the appeal was pending, the parties entered into a settlement under which Wal-Mart would divest four supermarkets.

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Texas et al. v. Penguin Group et al., No. 1:12-cv-03394-DLC (S.D.N.Y, Apr. 30, 2012)

TTexas and Connecticut led 33 state group that filed complaint charging three of the nation’s largest book publishers and Apple Inc. with colluding to fix the sales prices of electronic books. The States undertook a two-year investigation into allegations that the defendants conspired to raise e-book prices. Retailers had long sold e-books through a traditional wholesale distribution model, under which retailers, not publishers, set e-book sales prices. The states alleged that Penguin, Simon & Schuster and Macmillan conspired with other publishers and Apple to artificially raise prices by imposing a distribution model in which the publishers set the prices for bestsellers at $12.99 and $14.99. When Apple prepared to enter the e-book market, the publishers and Apple agreed to adopt an agency distribution model as a mechanism to allow them to fix prices. To enforce their price-fixing scheme, the publishers and Apple relied on contract terms that forced all e-book outlets to sell their products at the same price. Because the publishers agreed to use the same prices, retail price competition was eliminated. According to the States’ enforcement action, the coordinated agreement to fix prices resulted in e-book customers paying more than $100 million in overcharges. The States’ antitrust action seeks injunctive relief, damages for customers who paid artificially inflated prices for e-books and civil penalties. Case was filed in W.D. Tex., transferred to S.D.N.Y. as consolidated case. The States reached settlements with the five publishers, which granted E-book outlets greater freedom to reduce the prices of their E-book titles. Consumers nationwide received a total of $164 million in compensation. After entering into settlement agreement with all the Defendant publishers, DOJ and the states had a nearly 3 week trial against Apple in June 2013, during which numerous witnesses took the stand. On July 10, 2013, a decision was handed down in favor of the U.S. Department of Justice and the states against Apple. Trial of the damages phase is pending. United States et al. v. Apple, Inc., 12-CV-2826 (S.D.N.Y.).

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