Last month, the U.S. Department of Justice (DOJ) Antitrust Division launched its first monetary whistleblower rewards program in partnership with the U.S. Postal Service (USPS). The program offers potential monetary rewards to individuals who report evidence of antitrust crimes and related offenses.

The Program

• The whistleblower must voluntarily provide original, truthful, and complete information derived from independent knowledge.
• If a tip leads to a criminal fine or other recovery of at least $1 million, the whistleblower may receive 15–30 percent of the total (at the discretion of the Antitrust Division).
• The alleged crimes must be “Eligible Criminal Violations.” The Memorandum of Understanding between the Antitrust Division and USPS lists four categories of criminal offenses that are presumptively Eligible Criminal Violations: 1) criminal violations of sections 1, 2, and 3 of the Sherman Act; 2) federal criminal violations committed to effectuate, facilitate, or conceal violations of the Sherman Act; 3) federal criminal violations targeting or affecting federal, state, or local public procurement; and 4) federal criminal violations targeting or affecting the conduct of federal competition investigations or proceedings.
• The violation of law must affect the Postal Service, its revenues, or property. But “the harm need not be material or otherwise pose any substantial detriment to the Postal Service.” Because the Postal Service procures goods and services either directly or indirectly from many industries, this is unlikely to be a significant barrier to recovery.

Why it Matters

For decades, the Antitrust Division has relied on its Corporate Leniency Policy to encourage voluntary self-disclosures. The policy allows corporations to make voluntary self-disclosures and cooperate in criminal antitrust investigations in exchange for non-prosecution protections for the corporate entity and its cooperating personnel.

The Corporate Leniency Policy remains in place but now operates alongside a bounty program that motivates individuals to bypass internal reporting and go straight to DOJ. Practically, that compresses corporate decision time: companies may have less opportunity (or none at all) to investigate and seek leniency before a whistleblower initiates contact with the government.

The enforcement signal is clear: the Antitrust Division intends to maintain targeted investigations and enforcement actions. And criminal inquiries also frequently pave the way for follow-on private litigation.

What Should Companies Do Now?

•  Continue developing effective antitrust compliance programs that can prevent misconduct.
• Encourage internal reporting by creating and promoting robust, confidential reporting mechanisms that are easy to use, and maintaining strong anti-retaliation policies.
• Promptly investigate any reported misconduct and consider the risk of potential whistleblower disclosures when deciding whether to self-report to DOJ.