The Federal Trade Commission (FTC), joined by the U.S. Department of Justice (DOJ) Antitrust Division, has filed a Statement of Interest in a multistate antitrust lawsuit against asset managers BlackRock, State Street, and Vanguard. The case, led by Texas Attorney General Ken Paxton, alleges that the firms conspired to reduce coal production as part of a broader “Net Zero” initiative tied to Environmental, Social, and Governance (ESG) goals. The companies are accused of using their positions as major shareholders in competing coal companies to influence decisions that reduced overall industry output, allegedly leading to higher coal prices and increased energy costs for American consumers.
The FTC and DOJ stated that their involvement aims to ensure the correct application of antitrust laws and to prevent anti-competitive practices that harm consumers. In their joint filing with the U.S. District Court for the Eastern District of Texas, the agencies argued that institutional investors can be held accountable under the Clayton Act when their shared ownership is used to pursue unlawful goals. They also clarified that broad industry initiatives, even when based on social or environmental concerns, may still violate the Sherman and Clayton Acts. The Commission approved the statement with a 2-0-1 vote, with Commissioner Melissa Holyoak recused. FTC Chairman Andrew Ferguson highlighted, “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.”
