On January 29, 2026, the U.S. Department of Justice (“DOJ”), Antitrust Division (the “Division”) announced its first-ever whistleblower reward, paying $1 million to a whistleblower under its new Whistleblower Rewards Program (the “Program”) initiated just six months prior.
As detailed in an earlier Alert, the Program is a collaboration between the Division and the United States Postal Service, and the United States Postal Service Office of Inspector General (collectively the “Postal Service”). It established, for the first time in U.S. antitrust enforcement history, a monetary incentive for individuals to report criminal antitrust violations that result in monetary recovery or fines of over $1 million.
The Division’s announcement recounted how the whistleblower’s tip revealed a bid-rigging scheme involving EBLOCK Corporation, an online used vehicle auction platform. According to the Criminal Information and Deferred Prosecution Agreement, in 2020, EBLOCK acquired another used vehicle auction platform referred to as Company A. Before the acquisition and continuing through February 2022, Company A and a competitor identified as Company B shared bidding information and agreed on the maximum amount Company A or Company B would bid on certain vehicles. Companies A and B also maintained a shared inventory of vehicles and would place “shill bids” under the names of actual auto dealerships to drive up the car’s price. EBLOCK will pay a $3.28 million criminal fine and undertake remedial measures, including compliance program enhancements and obligations to cooperate with any ongoing criminal investigations and resulting prosecutions.
Takeaways
The Division’s first payment made under the Program was likely carefully chosen, with the prosecution and the Division’s accompanying press release intended to send clear signals about its expectations for the Program. Those include:
- The Division will reward whistleblowers substantially. Paying a $1 million reward on a $3.28 million penalty likely was intended to show that the Division will be generous in its payments to whistleblowers that yield substantial fines.
- The Program is having its intended effect of encouraging whistleblowers to come forward. The Division stated that it has received many other whistleblower tips in addition to the one here. In remarks delivered about the prosecution, Deputy Assistant Attorney General Omeed Assefi said that cases are increasingly relying on whistleblowers, so much so that it is “becoming a rarity in which [the Division’s] case does not include a whistleblower.”
- The Division is committed to prosecuting fraud, no matter how long ago the conduct occurred. The misconduct here began before EBLOCK acquired Company A and ended nearly four years ago, in early 2022. However, the Division still held EBLOCK accountable because it “did not take immediate action to end ‘shill bidding’ on Company A’s platform.” Acting Director of Criminal Enforcement Daniel Glad reinforced that whistleblowers can still “receive a significant award — even if the criminal activity has already ended.”
- The Program only requires a de minimis connection to the U.S. mail. The Division currently has no independent mechanism to pay whistleblowers monetary rewards. The Program therefore relies on the Postal Service’s statutory authority to collect fines and penalties and pay those who report violations that affect the Postal Service. The only connection to the mails here is that they were “used . . . to send documentation related to the scheme.” This shows that mere use of the mail in furtherance of the alleged scheme is enough to qualify under the Program.
- The Program is designed to accelerate the “race to report.” In the Division’s press release, Deputy Assistant Attorney General Assefi expressly reminded companies that the first in the door can receive leniency under the Division’s existing Corporate Leniency Policy. However, he warned that “the race is faster now, because employees and their attorneys are incentivized to blow the whistle and beat their companies to the Division’s doorstep.”
- The Division is committed to its “America First Antitrust” enforcement policy. In a speech on April 28, 2025, Assistant Attorney General Gail Slater announced that the Division’s “efforts will focus on those markets that most directly affect [Americans’] lives” such as “housing, healthcare, groceries, transportation, insurance, entertainment, and similar markets.” The Division’s prosecution of EBLOCK, a used-car auction platform, shows a clear commitment to that ideology. Continuing that trend, it was reported on February 6, 2026 that U.S. homebuilders may have found themselves in the crosshairs of antitrust regulators.
Impact on Compliance Programs
- Comprehensive Pre-Acquisition Due Diligence. Company A’s scheme began before EBLOCK acquired it. While EBLOCK did not participate in the original conspiracy, it was nonetheless held to be at fault because it failed to recognize the misconduct and stop it. This reality highlights the importance of conducting thorough pre-acquisition due diligence on targets and continuing to be vigilant for potential red flags raised during post-acquisition integration.
- Responsive Investigative Function. The incentive created through the Program for whistleblowers to report misconduct compresses timelines for investigation and voluntary disclosure decision-making. The Program therefore puts a premium on the ability to conduct prompt and thorough internal investigations. Companies should ensure that these mechanisms are functioning properly as a result.
- Employee Training. Consider whether employees have been sufficiently trained on antitrust topics, like bid-rigging, market allocation, and price fixing and are aware of common antitrust pitfalls, like interactions with competitors during industry events or trade association meetings. Proactive measures like trainings can help prevent an issue from arising in the first instance or help employees spot issues as soon as they arise so the company can respond quickly.
