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Architects Institute Hit by U.S. Antitrust Suit

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From United Press International

The American Institute of Architects violated antitrust laws by illegally restraining trade, the Justice Department said today in a civil antitrust suit.

The group “unreasonably restrained price competition in the sale of architectural services,” the Justice Department said.

The industry trade group that represents many architects in America signed a settlement agreement with the Justice Department that was filed simultaneously in U.S. District Court.

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A federal judge will have to review the government’s suit and the consent decree, and decide whether to accept the proposed settlement.

The Justice Department said that about 54,000 architects belong to the trade group and that the AIA “entered into an unlawful agreement” to prohibit members from providing free services, engaging in competitive bidding and discounting their fees.

As part of the proposed settlement with the government, the architectural trade group must “institute a comprehensive antitrust compliance program” during the next decade, the Justice Department said.

Further antitrust violations “may result in disciplinary measures and charges of criminal contempt,” the Justice Department said.

It is not the first time the American Institute of Architects has been cited for violation of America’s antitrust laws. In 1972, a “final judgment” was entered against the group for antitrust violations, the Justice Department said.

The proposed consent decree “supersedes” the 1972 order, the Justice Department said.

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