In December 2012, the Department of Justice, Antitrust Division
(DOJ) released a business review letter for STARS Alliance LLC
(STARS), an association of several nuclear utility operators, which
serves as a reminder for trade associations, joint ventures, and
individual companies that group purchasing activities are
permissible under the antitrust laws when done
properly.1 This is a brief analysis of the STARS
letter, along with best practices for entities looking
to obtain the cost savings of a joint purchasing arrangement
while minimizing the antitrust risk.
Joint Purchasing Under the Antitrust Laws
The DOJ reviewed STARS's proposal to allow its seven nuclear
utility members to jointly procure goods and services, such
as turbine maintenance and steam generator services and
protective clothing. (STARS had previously received a business
review letter approving its proposal to share member resources
and best practices, and to coordinate joint planning
