Washington, D.C. — The American Economic Liberties Project released the following statement in response to news that seven directors have resigned from corporate board positions in response to concerns raised by the Department of Justice that their roles violated the Clayton Act’s prohibition on interlocking directorates.

“Corporate executives brazenly skirting antitrust law no longer have anywhere to hide,” said Sarah Miller, Executive Director of the American Economic Liberties Project. “The DOJ’s actions revive a key piece of the Clayton Act, taking on private equity and targeting the pervasive conflicts of interests rigging boardroom decisions around the world. We commend the Department of Justice for using every tool at its disposal to avert collusion and promote competition.”

Section 8 of the Clayton Act forbids any individual from serving as an officer or board member at a competing corporation. It also forbids any firm from appointing two different individuals to sit on different competing firms’ boards. Prosecuting and monitoring so-called “interlocking directorates” is a straightforward way to make sure that executives and financiers do not engage in unfair coordination.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.