Legal Library: Cases and Proceedings

The corporation that represents household goods movers in Indiana settled charges that it filed collective intrastate rate tariffs with the State’s Department of Revenue on behalf of its members. According to the complaint issued with the consent order, these collective filings reduced competition for household goods moving services within the state, and the conduct was not protected by the state action doctrine because it was not actively supervised by the state.

Quest Diagnostics settled FTC charges that its proposed acquisition of Unilab Corporation would substantially increase concentration in the clinical laboratory testing services market by agreeing to divest clinical laboratory testing assets in Northern California to Laboratory Corporation of America.

A consent order permits Bayer to purchase Aventis CropScience Holdings S.A. from Aventis S.A. The order requires Bayer to divest businesses and assets in the following four major markets: new generation chemical insecticide products: new- generation chemical insecticide active ingredients; post-emergent grass herbicides for spring wheat; and cool weather cotton defoliants. According to the complaint, the transaction as proposed would result in the elimination of both actual and competition in the four markets; increase barriers to entry; reduce innovation competition for certain products; and increase the possibility of coordinated interaction between competitors.

A consent order settled charges that the American Institute for Conservation of Historic and Artistic Works adopted and enforced provisions in its rules of conduct that prohibited professional conservators to work for free or at reduced fees. The association agreed to remove all provisions from its Code of Ethics, and its Commentaries to the Guidelines for Practice that are inconsistent with the order. Professional conservators manage and preserve cultural objects (including historical scientific, religious, archaeological and artistic objects).

The Commission authorized staff to file a motion for a preliminary injunction to block the proposed acquisition of Vivendi Universal S.A.’s Seagram Wine and Spirits Business on grounds that the transaction, would combine the second- and third-largest rum producers in the U.S. eliminating actual competition between the firms, leading to higher prices for rum. The Commission charged that Diageo and Bacardi together would control 95 percent of all U.S. premium rum sales, and that Diageo would have access to highly sensitive business information about Seagram's Gin, Chivas Regal Scotch whisky, The Glenlivet Scotch, and Martell Cognac, products with which Diageo is in significant competition.  If Diageo were to acquire these brands, it would maintain (or have a financial interest in) virtually all popular gin sales, virtually all deluxe Scotch whisky sales, 32 percent of all single malt Scotch whisky sales, and 63 percent of all Cognac sales in the United States.  Those brands, which compete directly with other brands marketed by Diageo in the United States (including Gordon's Gin, Classic Malt Scotch whiskies, Johnnie Walker Black Scotch, and Hennessy Cognac), are Seagram's Gin, Chivas Regal Scotch whisky, The Glenlivet Scotch whisky, and Martell Cognac.  The parties settled the charges and by consent order, Diageo was required to divest the Malibu rum business worldwide to a Commission-approved buyer.  The order also prevented Diageo from obtaining or using any competitively sensitive business information related to Seagram's Gin, Chivas Regal Scotch whisky, The Glenlivet Scotch whisky, or Martell Cognac.

Roche agreed to divest, certain assets in the U.S. and Canada to settle antitrust concerns stemming from its proposed acquisition of Corange Limited. The consent order permits the acquisition but requires the divestiture of Cardiac thrombolytic agents (drugs used to treat heart attack victims) and ongoing business assets relating to chemicals used to test for the presence of illegal or abused drugs.

The consent order required the divestiture of Blue Circle Industries PLC's cement business serving the Great Lakes region of Ohio, Michigan, Illinois, Wisconsin and New York; its cement business in the Syracuse, New York; and its lime business in the southeast United States. These divestitures settled antitrust concerns stemming from Lafarge's proposed merger with Blue Circle. The two firms are market leaders in the industry for cement and lime.

A consent order settled antitrust concerns stemming from Exxon's acquisition of Mobil Corporation, but requires the largest retail divestiture in Commission history. The divestitures, representing only a fraction of the worldwide assets of Exxon and Mobil, include 2,431 gas stations; an Exxon refinery in California; a pipeline; and other assets. According to the complaint, the proposed merger would injure competition in moderate concentrated markets -California gasoline refining, marketing and retail sales of gasoline in the Northeast, Mid-Atlantic and Texas; and in the highly concentrated markets for jet turbine oil.