Lockheed Corporation

The Federal Trade Commission has given final approval to a consent agreement with Lockheed Corporation, Martin Marietta Corporation and Lockheed Martin Corporation. The consent agreement settles charges that the $9 billion-plus merger of Lockheed and Martin Marietta would violate federal antitrust laws by substantially reducing competition in the U.S. markets for military aircraft, military satellites and satellite launch- vehicles. The Commission's action makes the consent order provisions binding on the respondents.

Lockheed Martin's headquarters office is in Bethesda, Maryland.

The order requires Lockheed Martin Corporation to open up the exclusive teaming arrangements that each individual firm, prior to the merger, had with infrared sensor producers, so as to restore competition for certain types of military satellites. The settlement also prohibits certain divisions of Lockheed Martin from gaining access through other divisions to competi- tively-sensitive information about competitors' satellite launch vehicles or about competitors' military aircraft. Finally, the settlement places restrictions on Lockheed Martin's ability to modify the LANTIRN system -- a military aircraft infrared navigation device -- in any way that could disadvantage competing military aircraft manufacturers.

The settlement also contains various reporting provisions designed to assist the FTC in monitoring the respondents' compliance.

The consent agreement was announced for a public-comment period on Jan. 11. The Commission vote to issue it in final form occurred on May 9, and was 5-0

NOTE: A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions by the respon- dents. Each violation of such an order may result in a civil penalty of up to $10,000.

A news release summarizing the complaint and consent agree- ment in more detail was issued at the time the Commission accepted the consent agreement for public comment. Copies of that release and of the complaint and final order are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580.

(FTC File No. 951 0005)

(Docket No. c-3576)