Teaming Agreements And Antitrust

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DoD has published two main documents on exclusive association agreements: although antitrust laws are not new, the specific and coordinated focus on investigating and tracking alleged breaches in public contract space is a timely warning and reminder to all state contractors to verify and strengthen their compliance and oversight protocols. For example, team agreements, joint ventures and other cooperation agreements in FAR and purchasing practices are recognized as useful and competitive means of pursuing public procurement and providing services more effectively to the government. However, these agreements also carry risks in terms of cartels and abuse of dominance if they are not put in place and managed in such a way as to prevent the illicit exchange of information, the coordination of supply or any other potentially illegal behaviour. Since the publication of these guidelines, antitrust authorities have become increasingly active in investigating and challenging conduct that could impede competition for staff and staff. In January 2018, Deputy Attorney General Makan Delrahim said he was „shocked“ by some of the no-poaching agreements that the DOJ had complied with.20 Shortly after his statement, the DOJ filed a complaint against Knorr-Bremse AG and Westinghouse Air Brake Technologies Corporation, saying that the two companies had agreed not to request or hire each other`s staff. The DOJ said the agreements „reduced competition for workers at the expense of workers in this important U.S. industry.“ 21 The DOJ described the disputed sector as characterized by „strong demand and limited supply of qualified personnel experienced in the railway industry“ and other skills.22 23 The defence and contract industry is an active space for mergers and acquisitions. , and the authorization of the Confederation for cartels and abuse of dominance is an important aspect of any significant transaction. In recent years, there have been several notable mergers in the defense industry: the Federal Trade Commission approved the combination of Safran SA and Zodiac Areospace in 2017, and in June 2018, the FTC authorized Northrop Grumman`s acquisition of missile component supplier Orbital ATK.