[Federal Register: January 12, 1999 (Volume 64, Number 7)] [Notices] [Page 1822-1823] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr12ja99-85] ----------------------------------------------------------------------- DEPARTMENT OF JUSTICE Antitrust Division U.S. versus Concert plc and MCI Communications Corporation; United States Notice of Defendant's Motion to Terminate Modified Final Judgment Notice is hereby given that MCI WorldCom, Inc. (``MCI WorldCom''), successor-in-interest to defendant MCI Communications Corporation (``MCI''), and British Telecommunications plc (``BT''), predecessor-in- interest to defendant Concert plc, have moved to terminate the Modified Final Judgment entered by this Court on September 16, 1997. In a stipulation also filed with the Court, the Department of Justice (``Department'') has tentatively consented to termination of the Judgment, but has reserved the right to withdraw its consent pending receipt of public comments. On June 15, 1994, the United States filed its complaint in this case. The complaint alleged that the acquisition by British Telecommunications plc (``BT'') of a 20% ownership interest in MCI Communications Corporation (``MCI'') created an incentive for BT, using its existing market power in the [[Page 1823]] United Kingdom, to favor MCI at the expense of other United States international carriers in the market or markets for international telecommunications services between the United States and the United Kingdom. The complaint also alleged that the formation of a joint venture between BT and MCI to provide seamless global network services to multinational corporations created an incentive for BT to use its dominance in the UK to favor the joint venture at the expense of other global network service providers in the provision of the UK segment essential to any seamless global network. The Final Judgment, filed contemporaneously with the complaint and entered by the Court on September 29, 1994 after a Tunney Act review, contained three categories of provisions designed to remedy the anticompetitive effects of the partial acquisition: (1) transparency or reporting provisions; (2) confidentiality provisions; and (3) a provision relating to International Simple Resale (``ISR''). These provisions were specifically designed to diminish the risk that BT would successfully act on its incentive to use its market power to discriminate in favor of MCI or the joint venture. After the Final Judgment was entered, BT and MCI consummated BT's 20% acquisition and formed the joint venture known as Concert Communications Company. In November 1996, BT and MCI entered into a Merger Agreement and Plan of Merger pursuant to which BT agreed to acquire the remaining 80% of MCI. The new parent company was to be renamed Concert plc. Although the Department had thoroughly analyzed all of the competitive consequences associated with BT's initial 20% acquisition of MCI, the Department undertook an evaluation of the changes in market conditions since 1994 in order to determine whether a modification of the existing decree was appropriate under the circumstances. As a result of its new analysis, the Department concluded that BT's incentives and ability to discriminate against MCI's and Concert's competitors still existed. Consequently, the Department recommended that the provisions of the Final Judgment aimed at deterring and detecting discrimination be retained and, in some circumstances, strengthened. In addition, the Department determined that certain modifications to the confidentiality provisions were necessary in order to ensure that the proposed full integration of BT and MCI would not impair the effectiveness of the protection afforded by the Final Judgment. On September 16, 1997, after fully considering the comments received and the United States' response to those comments, the Court entered the Modified Final Judgment proposed by the parties. Thereafter, on November 9, 1997, MCI and BT terminated their merger agreement and BT agreed to acquire MCI's 24.9% interest in the Concert joint venture. Contemporaneously therewith, MCI entered into a new merger agreement with WorldCom, Inc. (``WorldCom''), and WorldCom agreed to acquire BT's 20% interest in MCI. On September 15, 1998, the foregoing transactions were consummated. Currently, BT has no equity interest in MCI or MCI WorldCom. Conversely, neither MCI WorldCom nor MCI has any equity interest in the Concert joint venture. The Department, MCI WorldCom and BT have filed memoranda with the Court setting forth the reasons why they believe that termination of the Modified Final Judgment would serve the public interest. Copies of MCI WorldCom's and BT's motion to terminate, the stipulation containing the Department's consent, the supporting memoranda, and all additional papers filed with the Court in connection with this motion will be available for inspection at the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, Room 215, North Liberty Place Building, 325 7th Street, N.W., Washington, D.C. 20004, and at the Office of the Clerk of the United States District Court for the District of Columbia. Copies of these materials may be obtained from the Antitrust Division upon request and payment of the duplicating fee determined by Department of Justice regulations. Interested persons may submit comments regarding the proposed termination of the Judgment to the Department. Such comments must be received by the Antitrust Division within sixty (60) days and will be filed with the Court by the Department. Comments should be addressed to Donald J. Russell, Chief, Telecommunications Task Force, Antitrust Division, U.S. Department of Justice, 1401 H Street, N.W., Suite 8000, Washington, D.C. 20005, telephone (202) 514-6381. Constance K. Robinson, Director of Operations & Merger Enforcement, Antitrust Division. [FR Doc. 99-610 Filed 1-11-99; 8:45 am] BILLING CODE 4410-11-M