Legal Library: Cases and Proceedings

The New Hampshire Motor Transport Association settled charges that it filed tariffs on behalf of its 400 members containing rules  that called for automatic increases in intrastate rates during the summer months, conduct that was not protected by the state action doctrine because it was not actively supervised by the state. In addition, the organization agreed to void its collectively filed tariffs current in effect in New Hampshire, ensuring that future tarriff provisions would be filed individually.

An association of household goods movers agreed to settle FTC charges that it violated the antitrust laws by engaging in the collective filing of tariffs on behalf of its members who compete in the provision of moving services in the state of Alabama. The conduct is not protected by the state action doctrine because it was not actively supervised by the state. Under terms of a final consent order, Alabama Trucking Association, Inc. agreed to stop filing tariffs containing collective intrastate rates and to void collectively filed tariffs currently in effect in Alabama.

A consent order settled charges that the household goods movers association filed collectively established rate tariffs for its members in Minnesota, conduct that was not protected by the state action doctrine because the conduct was not actively supervised by the state. According to the complaint, the MTSA filed collectively set rates on behalf of its 89 members, which had the effect of fixing prices of household goods moves, and restricting price competition to the detriment of consumers.

A consent order prohibits a St. Louis, Missouri physicians’ organization from negotiating with third party payers on behalf of its member physicians and from refusing to deal with health insurance companies.

A network of doctors, hospitals, and its executive director, William R. Diggins, settled charges that they illegally engaged in price-fixing activities that raised health care costs in five Maine counties by negotiating jointly with third-party payers in a effort to obtain higher compensation and more advantageous contract terms for its members.

A physician group in the Dallas/Fort Worth, Texas area settled charges that it collectively bargained on behalf of its members to negotiate fee schedules with third party payers and other health insurance companies. According to the complaint, issued with the consent order, these practices decreased competition and increased prices for the provision of medical services to area consumers.

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.

Shell Oil and Texaco settled allegations that their proposed joint venture would reduce competition and could raise prices for gasoline in Hawaii, California, and Washington and the price of asphalt in California. The consent order requires Shell to divest a package of assets, including Shell's Anacortes, Washington refinery; a terminal and retail gasoline stations in Oahu, Hawaii and retail gas stations, and a pipeline in California.

Consent order settles allegations that Urological Stone Surgeons, Parkside Kidney Stone Centers, Urological Services. Ltd and two physicians engaged in a price-fixing conspiracy to raise the price for professional urologist services for lithotripsy procedures in the Chicago metropolitan area. The complaint alleges that the parties agreed to use a common billing agent, established a uniform fee for lithotripsy services, prepared and distributed fee schedules, and negotiated contracts with third party payers on behalf of all urologists using the Parkside facility. The consent order prohibits such practices in the future and requires the parties to notify the Commission at least 45 days before forming or participating in an integrated joint venture to provide lithotripsy professional services.

Consent order permits Boeing's acquisition of Rockwell International Corporation's Aerospace and Defense business subject to a divestiture and other conditions. There are two teams competing to develop high-altitude endurance unmanned air vehicles for the Department of Defense's Advance Research Projects Agency -- Boeing/Lockheed (developing Tier III Minus, a stealthy, high-altitude endurance unmanned air vehicle) and Rockwell/Teledyne (developing Tier II Plus, a non-stealthy, high-altitude endurance unmanned air vehicle). As a result of the acquisition, Boeing would become a member of both teams and could increase the price of the components it supplies or reduce its investment in technology and quality. The consent order allows Teledyne, if it chooses, to replace Rockwell as its wing supplier without incurring any significant costs or risks to the project. Terms of the consent order require Boeing to deliver the assets necessary to produce the Tier 11Plus wings to businesses designated by Teledyne. The order also establishes a "firewall" between Boeing's Tier III Minus business and the Rockwell North American Aircraft Division that provides Tier II Plus wings.