[Congressional Record Volume 149, Number 74 (Monday, May 19, 2003)]
[Senate]
[Pages S6631-S6632]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH (for himself and Mr. Leahy):
  S. 1080. A bill to make amendments to certain antitrust penalties, 
and for other purposes; to the Committee on the Judiciary.

  Mr. HATCH. Mr. President, I rise today to introduce the ``Antitrust 
Improvements Act of 2003.'' I want to thank the Ranking Democrat Member 
from the Judiciary Committee, Senator Leahy, for joining me in 
introducing this measure as an original cosponsor. I hope that we can 
expeditiously report this measure from the Judiciary Committee and 
bring it to the Senate floor.
  The Hatch-Leahy Antitrust Improvements Act of 2003 is long overdue. 
The bill updates the criminal penalties applicable to antitrust 
criminal violations and repeals the archaic Title VIII of the 
``Antidumping Act of 1916,'' as requested by the administration.
  After careful examination and study of the current penalty structure 
for antitrust criminal offenses, Senator Leahy and I have come to 
agreement that the law needs to be modernized in a number of areas. 
Under current law, a person who commits a criminal violation of the 
antitrust laws can be subject to maximum punishment of 3 years 
imprisonment, while a corporation can be fined a maximum of $10 
million. These punishments need to be updated to reflect changes in 
market conditions, as well as to make them consistent with other 
changes we enacted last year to white collar criminal offenses as part 
of the Sarbanes-Oxley bill. Under the Hatch-Leahy proposal, the maximum 
punishment for an individual would be raised to 10 years imprisonment, 
and for a corporation the maximum fine would be increased to $100 
million.
  These changes are long overdue and will eliminate the huge disparity 
present in our laws between the treatment of criminal white collar 
offenses and antitrust criminal violations. The Sarbanes-Oxley Act 
passed last year raised the criminal penalties for a number of white 
collar offenses, but did not do so for antitrust criminal violations. 
An antitrust price-fixer who defrauds consumers for a total of $5 
million should be subject to a penalty which is more consistent with 
the penalty scheme for other white collar offenses. There is little 
difference, in my mind, between a market place criminal who takes 
advantage of consumers and a white collar cheater who steals money from 
his victims.
  The Hatch-Leahy proposal also will raise the maximum fines applicable 
to corporations and other legal entities from $10 million to $100 
million per violation. Such a change is needed to reflect the change in 
our economy and the importance of maintaining a credible deterrent 
against such conduct by corporations and other entities.
  It is also essential to note that all criminal fines are paid into a 
Victims Fund, which is administered by the Justice Department, and 
ultimately disbursed to support victims' advocacy groups. Criminals who 
have assets must first pay restitution to any identifiable victims to 
compensate them for their suffering, and then must pay

[[Page S6632]]

fines to the Victims Fund. The increased criminal fines will enhance 
the Justice Department's ability to support advocacy groups who work so 
hard on behalf of the victims of crime across America.
  The Antitrust Division's criminal enforcement program has been very 
successful in the past years, particularly in the area of criminal 
enforcement against international cartels affecting well over $10 
billion in commerce. With these new tools, the Antitrust Division can 
be even more effective in enforcing our antitrust criminal laws and 
deterring and preventing future offenses against American consumers.
  This bill also repeals an archaic provision of law, enacted in 1916, 
that allows private lawsuits with potential of treble damages against 
importers or producers for unfair pricing provided they had the intent 
to injure a U.S. industry. The World Trade Organization, WTO, has ruled 
that this act violates the United States obligations to address unfair 
pricing through the specified administrative measures of the 
Antidumping Agreement. Repealing this statute is an important and 
necessary step in complying with our obligations under negotiated 
international treaties.
  I urge my colleagues to support these important measures and support 
the Antitrust Improvements Act of 2003.
  Mr. LEAHY. Mr. President, I am pleased to join Senator Hatch today in 
offering this bill to increase criminal penalties against those who 
monopolize or restrict the market using unfair and illegal business 
practices.
  In an age that combines robust levels of international trade with the 
threats of Enron-style accounting, we must be increasingly vigilant to 
the threats of white-collar crime to our economy. Legitimate business 
can only thrive when bad actors realize that violations of antitrust 
law will be met with the strictest of penalties. Our bill increases the 
maximum sentence for a violation of the Sherman antitrust laws from 3 
to 10 years. Fines to corporations are increased tenfold to a maximum 
of $100 million per infraction. This increase will make it clear to 
corporate wrongdoers that no antitrust violation is affordable. These 
changes bring antitrust penalties in line with other white-collar 
crimes and send a clear message that the United States will not allow 
any company to abuse its consumers by misusing market power.
  Our bill also repeals an old and rarely used provision, the 
Antidumping Act of 1916. Congress must eliminate this provision in 
order to come into compliance with a ruling by the World Trade 
Organization. The U.S. Trade Representative and the Department of 
Justice both support the repeal of this act, and indeed have made a 
joint request for such legislation to the Congress.
  I am pleased to have worked with the chairman on this important 
legislation and urge my colleagues to support this bill.
  I ask unanimous consent to print in the Record the joint request by 
the U.S. Trade Representative and the Department of Justice.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
         Executive Office of the President, the United States 
           Trade Representative,
                                    Washington, DC, July 20, 2001.
     Hon. Richard B. Cheney,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: We are transmitting the enclosed draft 
     bill to repeal a provision of law enacted on September 8, 
     1916, regarding prevention of unfair methods of competition 
     (15 U.S.C. Sec. 72, c. 463, Title VIII, Sec. 801, 39 Stat. 
     798). That provision provides for a private right of action 
     for treble damages, as well as for criminal penalties in an 
     action brought by the U.S. government, for international 
     price discrimination.
       The Administration proposes repeal of this provision 
     because it is redundant of other U.S. laws providing remedies 
     for international price discrimination. To our knowledge, 
     during the past 85 years no plaintiff has obtained a final 
     judgment on the merits under this rarely-invoked law and no 
     government enforcement action has been taken. Furthermore, 
     this provision is inconsistent with the obligations of the 
     United States under the Marrakesh Agreement Establishing the 
     World Trade Organization (WTO Agreement).
       We would appreciate it if you would lay the draft bill 
     before the Senate. An identical proposal is being transmitted 
     to the Speaker of the House.
       The Office of Management and Budget has advised that there 
     is no objection to the presentation of this proposal to 
     Congress and that its enactment would be in accord with the 
     program of the President.
           Sincerely,
     John Ashcroft,
       Attorney General.
     Robert B. Zoellick,
       United States Trade Representative.
                                 ______