Interlocking Directorates: The DOJ’s Latest Target

Woodruff Sawyer – In 2021, the Biden administration pledged to ramp up antitrust enforcement efforts through an executive order. The next year, the Department of Justice’s Assistant Attorney General Jonathan Kanter announced the agency would focus on enforcing Section 8 of the Clayton Antitrust Act. Section 8 prevents any individual director or officer from simultaneously serving at two competing corporations that meet certain criteria, also known as interlocking directorates and officers. Fast-forward to October of 2022: The DOJ announced that seven directors had resigned from five companies. Note that the DOJ’s view of interlocks is not limited to individuals: The government cares about the investing entities as well.

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