Tag: Competition

The Commission authorized staff to file a complaint and settlement in federal district court to settle allegations that the College and three physician groups engaged in an illegal boycott in an effort to coerce the government to make price-related changes under Puerto Rico's government-managed care plan for the indigent. According to the complaint, filed by the Commission and Puerto Rico's Attorney General in the U.S. District Court of Puerto Rico on October 2, 1997, the College and physicians engaged in an eight day boycott of all physician services for non-emergency patient care, which caused many people to be treated at area hospital emergency rooms and forced others to completely forego medical care. The settlement prohibits such practices in the future and in addition, requires the College to pay $300,000 to the catastrophic fund administered by the Puerto Rico Department of Health.

The Commission authorized staff to file a motion for a preliminary injunction to block the proposed merger of the two largest hospitals in Grand Rapids, Michigan, Blodgen and Butterworth Hospital, on grounds that the merger would substantially reduce competition for acute-care inpatient hospital services in the area The complaint was filed January 23,1996 in the U.S. District Court for the Western District of Michigan (Southern Division). On September 26,1996, the court denied the Commission's request for an injunction. The Commission dismissed its administrative complaint after the U.S. Court of Appeals for the Sixth Circuit upheld the district court's decision.

Cadence agreed to settle charges that its acquisition of Cooper & Chyan Technology, Inc. would reduce competition for "routing" software used to automate the design of integrated circuits or microchips. According to the complaint, the merger would reduce Cadence's incentives to permit competing suppliers of routing tools to obtain access to its layout environments resulting in less innovation, higher prices, and reduced services. To ensure that independent software developers of commercial routing tools continue to compete with Cooper & Chyan's technology, the consent order requires Cadence to allow the developers to participate in Cadence's software interface programs.

Mediq abandoned its proposed acquisition of Universal Hospital Services after the Commission filed a complaint and motion for a preliminary injunction to block the merger of the nation's two largest firms engaged in the rental to hospitals of movable medical equipment, such as respiratory, infusion and monitoring devices. The complaint, filed in the U.S. District Court for the District of Columbia, alleged that the merger would create a monopoly for movable medical equipment rental in many major metropolitan areas across the nation.

CVS agreed to settle allegations that its acquisition of Revco would substantially reduce competition for the retail sale of pharmacy services to health insurance companies and other third-party payers in Virginia and in the Binghamton, New York metropolitan area. The consent order requires the divestiture of 114 Revco stores in Virginia and 6 pharmacy counters in Binghamton.

In March, 1998, CVS Corporation agreed to pay a $600,000 civil penalty to settle Federal Trade Commission charges that the company violated a 1997 consent order and asset maintenance agreement it signed with the agency to settle charges stemming from CVS's 1997 acquisition of Revco D.S., Inc.

The Commission issued a consent agreement settling charges that the acquisition of OrNda Healthcorp by Tenet Healthcare Corp. would substantially lessen competition for general acute care services in the San Luis Obispo, California area. According to the FTC, Tenet and OrNda were the second and third largest chains of general acute care hospitals in the country, and the two leading providers of acute care hospital services in San Luis Obispo County.  The consent order permits the acquisition but requires divestiture of Tenet's French Hospital Medical Center and related OrNda assets in San Luis Obispo County.

Final consent order preserves competition in the sale of commemorative class rings to graduating high school and college students. The order requires restructuring of the purchase agreement to exclude Gold Lance, Inc. from the proposed plans to acquire Class Rings, Inc. The new acquisition plan is limited to the class ring business of Town & Country Corporation and CJC Holdings, Inc.

Consent order settles charges that the acquisition of Metal Leve S.A. would result in Mahle becoming a monopolist in the research, development, manufacture and sale of articulated pistons used in heavy duty diesel engines and requires divestiture of Metal Leve's U.S. piston business within 10 days of the final consent order.

Consent order settles charges that the proposed acquisition of Solvay, S.A.'s animal health business would reduce competition in the market for the research, development, manufacture and sale of canine lyme vaccine, canine corona virus vaccine, and feline leukemia vaccine. The order requires divestiture of Solvay's U.S. and Canadian rights to the three types of vaccines to the Schering-Plough Corporation or another Commission-approved buyer.

Consent order preserves competition in ready-to-eat cereals. The order permits the acquisition of Ralcorp Holdings, Inc.'s branded ready-to-eat cereal and snack mix business but requires the transfer of licenses to manufacture and sell cereals identical to the Chex brand products without the approval of General Mills.

The final consent order settles charges that American Cyanamid entered into written agreements with its retail dealers to offer substantial rebates to dealers who sold the company's agricultural chemical products at or above specified minimum resale prices. The order prohibits American Cyanamid from conditioning the payment of rebates or other promotionals on the resale prices its dealers charge for its products.

Staff authorized to file a motion for a preliminary injunction to block the proposed acquisition of Office Depot, 1nc. on grounds that the $4 billion acquisition would allow the combined firm to control prices for the sale of office supplies in numerous metropolitan areas in the United States. On June 30, 1997, the U.S. District Court for the District of Columbia granted the Commission's motion for the injunction. Staples abandoned its acquisition plans in July 1997.