In Christie’s We (anti) Trust

The June 30-July 7 issue of New York Magazine had a unique story on Christie’s recent gallery launch in New York City. Are we way off mark, or is this like a Colombian cartel skewing local NY dealers and setting up shop in NYC?

Last year, Christie’s International bought the London gallery Haunch of Venison, which represents Bill Viola, Richard Long, and Keith Tyson. It could be a savvy move for Christie’s if the market slows: Collectors traditionally turn to selling through dealers, not at auction, when prices weaken or when they need cash quietly.

Gallerists are up in arms. Art Dealers Association of America head Roland Augustine has said that the purchase of Haunch was to ‘get product for auctions’ and wondered, to Artnet, if the deal would ‘raise some eyebrows’ given America’s antitrust laws. Meanwhile, Haunch was frozen out of the Frieze and Art Basel art fairs.

In the United States, antitrust law is the body of laws that prohibits anti-competitive behavior (monopolies) and unfair business practices (both generally regulated by the 1890 Sherman Act). These competition laws make illegal certain practices deemed to hurt businesses or consumers or both, or generally to violate standards of ethical behavior. In the U.S. the Federal Trade Commission as well as private parties can enforce antitrust laws.

For a brief overview on U.S. antitrust law, see the Cornell Law School’s Legal Information Institute.