The staff of the Federal Trade Commission has negotiated an agreement with The Hearst Corporation (Hearst), which staff will propose to the Commission as a way to settle a permanent injunction action filed by the FTC. According to the Commission's April 5, 2001 complaint, Hearst failed to provide documents required by premerger notification law and then consummated a merger that monopolized the integrated drug information database market. On November 9, 2001, the defendants, The Hearst Trust, The Hearst Corporation and a wholly owned subsidiary, First DataBank, Inc., signed a stipulation for entry of a final order to settle that suit.
Under the terms of the proposed settlement, Hearst would divest the Medi-Span business to Lippincott Williams & Wilkins, Inc. (d/b/a Facts and Comparisons), a subsidiary of Wolters Kluwer, n.v., to disgorge $19 million in profits and to comply with certain other obligations.
The Hearst Corporation and The Hearst Trust are headquartered in New York City, and First DataBank, Inc. is headquartered in San Bruno, California. Facts and Comparisons, headquartered in St. Louis, Missouri, is an unincorporated division of Lippincott Williams & Wilkins, Inc., which is a Delaware corporation and a subsidiary of Wolters Kluwer, n.v., a Dutch corporation.
The FTC must approve the proposed settlement before it can be filed with the court. Although not required to do so, the Commission believes that, based upon the circumstances in this case, it is in the public interest to make the proposed final order available for review on the FTC's Web site. The public is invited to submit comments on this proposed settlement for the FTC's consideration. Comments should be submitted to the Secretary of the Commission, attention: Daniel P. Ducore, Assistant Director for Compliance, Bureau of Competition. The FTC will be acting expeditiously on this matter and requests that comments be received no later than December 3, 2001. If the agreement is approved by the Commission, it will be filed in the U.S. District Court for the District of Columbia.
The Federal Trade Commission works to promote competition, and to protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about how competition benefits consumers, file an antitrust complaint, or comment on a proposed merger. For the latest news and resources, follow the FTC on social media, subscribe to press releases, and read our blog.
Contact Information
- Media Contact:
- Cathy MacFarlane
Office of Public Affairs
202-326-3657 - Staff Contact:
- Daniel P. Ducore
Bureau of Competition
202-326-2526