Antitrust Battle Brews Over Climate Activism and Coal Output
U.S. federal antitrust authorities back Republican states accusing asset managers BlackRock, Vanguard, and State Street of conspiring to reduce coal output through climate activism. The agencies argue against dismissing the case, citing antitrust violations. The lawsuit faces resistance from the asset managers, who deny the claims.
In a heated legal development, U.S. federal antitrust officials have thrown their support behind Republican-led states accusing major asset managers of undercutting competition in the coal industry through climate activism.
The U.S. Department of Justice and Federal Trade Commission have urged the court in Tyler, Texas, to retain charges against BlackRock, Vanguard, and State Street, dismissing defense arguments that these actions fall under passive investor exemptions. The agencies assert that such practices have traditionally been condemned under antitrust laws.
The case underscores the political challenges faced by BlackRock, Vanguard, and State Street, as they navigate criticisms from conservative Republicans for prioritizing environmental and social considerations over financial returns. With preliminary hearings approaching, the asset managers robustly deny any wrongdoing and prepare to make their case in court later this summer.
(With inputs from agencies.)
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