WASHINGTON, D.C. — The Federal Trade Commission (FTC) and the Department of Justice (DOJ) Antitrust Division have jointly submitted a Statement of Interest in a multistate antitrust lawsuit targeting BlackRock, State Street, and Vanguard. The case, led by Texas Attorney General Ken Paxton, accuses the asset management giants of participating in a conspiracy to suppress coal production, allegedly under the guise of Environmental, Social, and Governance (ESG) goals.
The lawsuit contends that BlackRock, State Street, and Vanguard used their influence as major shareholders in multiple coal companies to orchestrate industry-wide reductions in coal output. This alleged coordination, combined with the sharing of competitively sensitive information, is said to have driven up coal prices and increased energy costs for American consumers.
FTC Chairman Andrew Ferguson underscored the administration’s commitment to energy security and competitive markets, stating, “These companies allegedly blocked the production of American coal in the name of climate change scaremongering, all so they could take money out of the pockets of American consumers and put it in theirs.”
The jointly filed statement from the FTC and DOJ highlights the agencies’ role as enforcers of federal antitrust laws, seeking to prevent practices that distort markets and harm consumers. The statement emphasizes that institutional investors may face liability under Section 7 of the Clayton Act if stock holdings in competing firms are used to achieve anticompetitive outcomes. Furthermore, the agencies assert that public initiatives framed as socially motivated, such as those under ESG principles, may still breach the Sherman and Clayton Acts if they restrict competition.
The agencies also urged the U.S. District Court for the Eastern District of Texas to reject the asset managers’ legal arguments, citing errors in their interpretation of federal antitrust laws. While reiterating the importance of institutional investors in U.S. capital markets, the statement reinforced that they remain subject to compliance with the same antitrust standards as all market participants.
The Commission voted 2-0-1 to approve the filing, with Commissioner Melissa Holyoak recused. This action reflects the federal government’s continued focus on upholding competitive integrity in energy and financial markets.
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