What Are the Criminal Penalties for Violating the Sherman Act?

A Sherman Act violation is a felony punishable by a fine of up to $100,000,000 for a corporation, a fine of up to $1,000,000 for any other person, imprisonment of up to 10 years, or both, at the discretion of the court (15 U.S.C. 1). The same penalties apply to monopolizing, attempting to monopolize or conspiring to monopolize trade or commerce (15 U.S.C. 2). When the offense produces pecuniary gain or causes pecuniary loss to a person other than the defendant, the defendant may instead be fined up to the greater of twice the gross gain or twice the gross loss, unless that would unduly complicate or prolong sentencing (18 U.S.C. 3571(d)). That alternative fine can exceed the Sherman Act caps.

What Section 1 covers. Section 1 makes illegal any contract, combination or conspiracy in restraint of trade or commerce among the states or with foreign nations. The DOJ and FTC guidelines on business activities affecting workers apply the same rule to labor markets, so wage-fixing and no-poach agreements between competing employers can be prosecuted as Section 1 felonies.

Who can be charged. Both the company and the individuals who took part can be charged. The individual fine cap applies to each person, and prison terms apply to individuals.

Monopolization. Section 2 reaches a person who monopolizes, or attempts or conspires to monopolize, any part of interstate or foreign trade. The corporate and individual penalty caps are the same as under Section 1.

Civil enforcement. Separate from criminal penalties, the Justice Department and states also bring civil cases that end in settlements or court orders. The news posts on the RealPage rental pricing settlement with Willow Bridge and the hot mix asphalt merger challenge in Tennessee describe recent civil actions.

The FAQ on no-poach and wage-fixing agreements explains how these rules apply to hiring, and the FAQ on antitrust whistleblower protection covers employees who report violations.