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When antitrust’s consumer welfare standard and ESG collide

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An increased focus on environmental, social and corporate governance (ESG) has caused firms to contemplate the antitrust ramifications of collaborating on sustainability initiatives that may lead to an increase in prices. For example, firms may consider collaborating on production methods that reduce pollution, thereby benefiting individuals who do not necessarily consume the firms’ products or services. Are such agreements anti-competitive under antitrust’s consumer welfare standard? Joshua Sherman discusses the need for clarity from policymakers given firms’ intensified interest in ESG-related collaboration.

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