What do Covid-19, the Russian invasion of Ukraine, and the climate crisis have in common? All three challenge our sense of safety and illuminate the interconnected nature of the modern world. Each also calls for a reconsideration of boundaries between government and business, and the appropriate balance between competition and cooperation in business — and in antitrust law. In some jurisdictions, antitrust authorities see climate cooperation as a means to support greener economies; elsewhere, their counterparts see them as a violation of antitrust law that must be stopped.
When Climate Collaboration Is Treated as an Antitrust Violation
Corporate cooperation will be critical in the fight against climate change — but the law might get in the way.
October 17, 2022
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Summary.
Carbon emissions transcend firms and borders—they are a massive, unpriced externality. Companies across industries are increasingly waking up to the need to cooperate in the fight against climate change but the law might get in the way. Across Europe and the U.S., regulators are discussing whether corporate climate collaborations violate antitrust law. Companies need to keep an eye on this debate, and regulators should strive to incorporate the effect of a partnership on emissions into antitrust considerations.