companies and their separate legal identity under the laws of the country of incorporation is disregarded.
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Shipping Antitrust Case
In June 1979, a US Grand Jury indicted several shipping lines and individuals, including two consortia with strong UK elements (Atlantic Containerline Services Ltd and Dart Containerline Ltd) and two UK nationals, for alleged offences under the US antitrust laws. The companies, although considering their actions entirely defensible, decided not to contest the case because of the legal costs that would have been involved and also the subsequent threat of treble damage actions. Therefore, a settlement was reached with the Department of Justice along the following lines:-
Individuals acceptance of a nolo contendere plea (neither guilt or innocence being proven) in respect of misdemeanour charges under the Sherman Act. A fine of $50,000 was imposed on all 13 individuals.
Companies - acceptance of a nolo contendere plea in respect of felony charges under the Sherman Act. The maximum fine of $1M was imposed on all 7 companies, although 3 later managed to get theirs reduced.
Although the case was settled out of court, the fines are the highest ever imposed under this basic antitrust law of 1890.
Despite the nolo contendere pleas and out of court settlement which were specifically designed to minimise treble damage activity, to date 34 suits have been filed which, if successful, could result in damage awards amounting to several billion dollars. The financial consequences for the companies could be crippling.
HMG's objections to the US Grand Jury's àction were essentially twofold:-
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a)
b)
The activities in question would not have been illegal in Europe, and
shipping is an international, and therefore multi- jurisdictional, activity affecting the interests of all concerned. If problems arise, they should be the subject of mutual discussion and agreement rather than for one country to take unilateral action with no regard for the legitimate shipping and trading interests of others.
Uranium Antitrust Case
In 1964 when the US uranium mining industry was threatened by foreign imports it was afforded long term protection by means of an effective ban on the importation of uranium for use in US reactors. At a stroke this had the direct effect of denying to the non-US producers around three-quarters of the world market for uranium. During the late 60s and early 70s, Westinghouse (the USA's biggest power engineering company) concluded a number of contracts relating to the construction of nuclear power stations in which they agreed to supply future quantities or uranium. The contracts specified fixed prices
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