The Justice Department, alongside the Federal Trade Commission, has taken a significant step by filing a statement of interest in the case of Texas et al. v. BlackRock, Inc. This lawsuit, spearheaded by the Texas Attorney General, accuses major asset management firms—BlackRock, State Street, and Vanguard—of leveraging their shareholdings in competing coal companies to intentionally decrease production levels, which has led to increased energy prices for consumers across the United States.

This marks the first time the Agencies have formally addressed the antitrust implications of common shareholdings in federal court. The statement comes in the context of recent executive orders from President Trump aimed at boosting domestic energy production, particularly coal, amidst a declared national energy emergency. The Agencies argue that fostering competition in the coal sector is essential for enhancing America’s energy security and economic vitality.

Assistant Attorney General Abigail A. Slater emphasized the detrimental impact on American consumers when institutional investors manipulate shareholdings to orchestrate output reductions. She reiterated that anticompetitive conduct cannot be justified by social or environmental arguments, stating, “We will not hesitate to stand up against powerful financial firms that use Americans’ retirement savings to harm competition under the guise of ESG.”

The statement of interest clarifies that while certain antitrust protections exist for passive investments, they do not extend to actions that encourage competitors to reduce output. The Agencies aim to delineate acceptable shareholder behavior from actions that constitute an anticompetitive campaign, thereby reinforcing the application of antitrust laws in this context.

The Antitrust Division regularly files such statements to safeguard competition and consumer interests, contributing to the evolution of antitrust law. A collection of these filings is accessible on the Division’s website, highlighting their commitment to maintaining competitive markets.