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US: Is fracking price-fixing case going nowhere?

By  |  August 6, 2013
US: Is fracking price-fixing case going nowhere?

One analyst specializing in the fracking industry told reporters Monday that the recently price-fixing case launched against certain market giants is unlikely to result in sanctions against the accused due to the highly competitive nature of the industry. Fracking, a highly controversial practice of extracting oil from the earth, is now the center of an antitrust investigation by the US Department of Justice, which quickly followed a lawsuit filed in Texas last Wednesday against the same probed companies: Halliburton, Schlumberger and Baker Huges, as well as some of their affiliates. The lawsuit alleges the companies misused their market dominance to fix fracking service prices and hamper competition. Plaintiffs in the case are reportedly seeking class action status. But analyst Alexander Robart from PacWest Consulting said the chances a judge will find widespread collusion are slim, though the DOJ may uncover some isolated anticompetitive incidences in its investigation.

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