Key House Panel Overwhelmingly Votes To Close
Monopoly Loopholes For Big Railroads, Protect Consumers
House Action Comes as Pace of Senate Negotiations Quickens

WASHINGTON, D.C. – A key House panel today took a significant step forward to protect American jobs and keep more money in the pockets of consumers by seeking to close the monopoly loopholes that exempt big railroads from antitrust regulation. Adding to growing momentum in Congress for action on behalf of consumers, the U.S. House Judiciary Subcommittee on Courts and Competition Policy passed by voice vote today H.R. 233, the Railroad Antitrust Enforcement Act of 2009.

The bill now awaits consideration by the full Judiciary Committee which is expected after Congress returns from the August recess. Action is also underway in the Senate, where Commerce Committee Chairman John D. Rockefeller, IV (D-WV) and Senator Herbert Kohl (D-WI) have vowed to work together to include the repeal of railroad antitrust exemptions in the forthcoming rail reform legislation being crafted by the Commerce Committee.

“This is an important step toward finally closing the railroad monopoly loopholes that have hurt American consumers, farmers, job growth, and our economy for too long. This bill will rein in monopoly pricing power and help manufacturers protect and create more jobs. It’s exactly the kind of no-cost economic stimulus we need right now,” said Glenn English, Chairman of Consumers United for Rail Equity.

Currently, freight rail companies enjoy a major loophole which exempts them from U.S. antitrust laws, setting them apart from nearly every other American industry. Railroads are instead regulated solely by the Surface Transportation Board, which has historically allowed the railroad industry to exploit antitrust exemptions at the expense of their customers, and ultimately, consumers across the nation. In 2004, the Bush Administration’s Justice Department told Congress it opposed “sector-specific exemptions to the antitrust laws.”

The Railroad Antitrust Enforcement Act has recently garnered support from U.S. Assistant Attorney General for Antitrust Christine Varney, 20 state Attorneys General, the American Bar Association, the National Industrial Transportation League and the Consumer Federation of America.

###