David Fischer on The Antitrust Review:
Yesterday, the House of Representatives passed HR 6074 which, in part, would amend the Sherman Antitrust Act.
Short title of this act tells us much about sponsors’ intentions: Sec. 1. This Act may be cited as the `No Oil Producing and Exporting Cartels Act of 2007′ or `NOPEC’.
Analyst quoted by Fischer doubts that NOPEC will have any positive effect for American gas consumers in the long run, but I want to comment on different aspect of this bill.
Ivo Cerckel in his comment on Antitrust Review suggested that NOPEC will establish Rule of Reason for price fixing agreements (which are illegal per se under § 1 of Sherman Antitrust Act):
§ 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. …
And NOPEC states:
Sec. 7A. (a) It shall be illegal and a violation of this Act … when such action, combination, or collective action has a direct, substantial, and reasonably foreseeable effect on the market, supply, price, or distribution of oil, natural gas, or other petroleum product in the United States.
This is clearly not a per se approach. It may be a step towards achieving more rationality in antitrust, provided that it will have any impact on domestic regulations (purpose of NOPEC is to prosecute foreign cartels). However, I would not go as far as to say that it is a step towards repeal of antitrust (I don’t think it’s plausible claim, especially knowing that NOPEC extends scope of antitrust). Anyway, I will surely watch development of this bill.