Federal judge dismisses Michigan's climate antitrust lawsuit

A federal judge has dismissed an antitrust lawsuit filed by Michigan Attorney General Dana Nessel against several major oil and gas companies. The suit, which targeted ExxonMobil, BP, Chevron, Shell, and the American Petroleum Institute, alleged a conspiracy to suppress renewable energy sources to keep consumers locked into expensive fossil fuel markets.

U.S. District Judge Jane M. Beckering ruled on September 22 that Michigan lacks standing to pursue the claims under federal antitrust laws. The judge noted that the “distance is too great between the alleged conspiracy” and the alleged impact on energy prices. The ruling stated that the chain of causation between the companies' alleged actions and the state's claimed injuries contained several vaguely defined links, noting that factors such as technological developments and market supply and demand also influence pricing.

The Department of Justice supported the dismissal, suggesting that states should rethink using antitrust law to enact climate policy. Michigan’s office stated it disagrees with the ruling and is currently reviewing its options.