[Federal Register Volume 85, Number 159 (Monday, August 17, 2020)]
[Notices]
[Page 50049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18006]


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DEPARTMENT OF JUSTICE

Antitrust Division


Notice Pursuant to the Defense Production Act of 1950

AGENCY: Antitrust Division, U.S. Department of Justice.

ACTION: Notice of review of voluntary agreement.

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SUMMARY: Notice is hereby given pursuant to section 708 of the Defense 
Production Act of 1950 (``DPA''), that the Attorney General finds, with 
respect to the Voluntary Agreement for the Manufacture and Distribution 
of Critical Healthcare Resources Necessary to Respond to a Pandemic 
(``Voluntary Agreement'') proposed by the Federal Emergency Management 
Agency (``FEMA''), that the purposes of section 708(c)(1) of the DPA 
may not reasonably be achieved through a voluntary agreement having 
less anticompetitive effects or without any voluntary agreement. Given 
this finding, the proposed Voluntary Agreement may become effective 
following the publication of this notice. FEMA is publishing the text 
of the proposed Voluntary Agreement elsewhere in this issue of the 
Federal Register.

SUPPLEMENTARY INFORMATION: Under the DPA, FEMA may enter into 
agreements with representatives of private industry for the purpose of 
improving the efficiency with which private firms contribute to the 
national defense when conditions exist that may pose a direct threat to 
the national defense or its preparedness. Such arrangements are 
generally known as ``voluntary agreements.'' A defense to actions 
brought under the antitrust laws is available to each participant 
acting within the scope of a voluntary agreement that has come into 
force under the DPA.
    The DPA requires that each proposed voluntary agreement be reviewed 
by the Attorney General prior to becoming effective. If, after 
consulting with the Chairman of the Federal Trade Commission, the 
Attorney General finds that the purposes of the DPA's voluntary-
agreements provision ``may not reasonably be achieved through a 
voluntary agreement . . . having less anticompetitive effects or 
without any voluntary agreement,'' the agreement may become effective. 
50 U.S.C. 4558(f)(1)(B).
    The purpose of the proposed Voluntary Agreement is to support 
Department of Homeland Security, Department of Health and Human 
Services (``HHS''), and FEMA contingency requirements to provide 
medical resources during times of pandemic through procedures agreed 
upon in advance. The proposed Voluntary Agreement establishes the 
terms, conditions and procedures under which participants agree 
voluntarily to contribute and facilitate medical resources production 
and distribution capacity as requested by FEMA, HHS, and other Federal 
Government entities. FEMA has certified that the proposed Voluntary 
Agreement is necessary to provide for the national defense in the event 
of a pandemic.
    FEMA requested that the Attorney General issue a finding that the 
proposed Voluntary Agreement satisfies the statutory criteria set forth 
in 50 U.S.C. 4558(f)(1)(B). The Antitrust Division reviewed the 
proposed agreement, attended an open meeting of interested persons 
pursuant to the requirements of 44 CFR 332.2, and consulted with the 
Chairman of the Federal Trade Commission as to the competitive effect 
of the proposed agreement. On July 31, 2020, by letter to Peter Gaynor, 
FEMA Administrator, William P. Barr, Attorney General, issued a 
finding, pursuant to 50 U.S.C. 4558(f)(1)(B), that the purposes of the 
DPA's voluntary-agreements provision ``may not reasonably be achieved 
through a voluntary agreement . . . having less anticompetitive effects 
or without any voluntary agreement.''

David G.B. Lawrence,
Chief, Competition Policy & Advocacy Section.
[FR Doc. 2020-18006 Filed 8-14-20; 8:45 am]
BILLING CODE 4410-11-P