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SUMMARY OF ANTITRUST
ENFORCEMENT ACTIONS
FOR
PUBLIC RELEASE
FOR MONDAY, MAR. 15, 1993 THROUGH FRIDAY, MAR. 19, 1993
| 3/15/93 |
U.S. v. USAir Group.
Inc.
Civil No.: 93 0530 (D.D.C.)
A civil complaint was
filed in U.S. District Court in Washington, D.C., challenging
the proposed transaction between USAir Group Inc. of Arlington,
Virginia, and British Airways Plc of London, England. At the same
time, a proposed consent decree was filed which, if approved by
the court, will resolve the suit by requiring USAir to divest
its authority to provide scheduled airline passenger service to
London from Philadelphia, Baltimore/Washington and Charlotte,
North Carolina. The consent decree requires USAir to transfer
its authority from each of its gateways to an approved purchaser
within 45 days of its initiation of code-sharing services with
British Airways from that gateway. If USAir is unable to complete
a sale, it is required to surrender the authority to the U.S.
Department of Transportation for authorization of another airline.
On January 21, 1993, British Airways purchased roughly 20 percent
of USAir's stock for $300 million, and the two airlines agreed
to initiate joint operations on U.S.-London services. Under the
joint program, the two airlines will provide connections from
London to numerous U.S. cities through USAir's hubs at Philadelphia,
Pittsburgh, Baltimore/Washington and Charlotte using shared airline
designator codes. Airline designator codes are used by airlines
and travel agents to identify carriers. British Airways accounts
for about 38 percent of the seats available for all U.S.-London
travel, with nonstop flights from 14 U.S. gateways, including
Philadelphia and Baltimore/Washington. USAir, with nonstop service
from the Philadelphia, Baltimore/Washington and Charlotte gateways,
competes with British Airways for passengers travelling to London
from cities located in the Northeast and Mid-Atlantic regions
of the United States, as well as for nonstop passengers from Philadelphia
and Baltimore/Washington. The complaint alleged that the effect
of the deal may substantially lessen competition in the provision
of scheduled airline passenger service between interior U.S. points
and London, and in the provision of nonstop scheduled airline
passenger service in the Philadelphia-London and Baltimore/Washington-London
markets.
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| 3/17/93 |
U.S. v. Canstar Sports
USA. Inc.
Civil No.: 2-93CV77 (D. Vt.)
A civil complaint was
filed in U.S. District Court in Burlington, Vermont, charging
Canstar Sports USA Inc. of Swanton, Vermont, for conspiring with
its dealers to fix the retail price of Canstar high performance
hockey skates with V2 blades in violation of Section 1 of the
Sherman Act. The complaint alleged that beginning as early as
February 1990 and continuing at least through November 1990 the
defendant and its co-conspirator retail dealers conspired to fix
the price at which the dealers sold Canstar hockey skates with
V2 blades. The complaint seeks injunctive relief to prevent the
defendant from directly or indirectly continuing or renewing the
conspiracy or from engaging in similar activities in the future.
At the same time, a proposed final judgment was also filed that
would settle the suit. "Agreements on resale prices among a manufacturer
and its dealers are per se violations of the Sherman Act and it
has long been Antitrust Division policy that they will be prosecuted
when they are found," John W. Clark, Acting Assistant Attorney
General in charge of the Antitrust Division, said.
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| 3/19/93 |
Justice Department
Intends to Challenge Proposed Acquisition by The Gillette Company
of Parker Pen Holdings Ltd.
The Department of Justice,
Antitrust Division, announced its intention to file a civil antitrust
suit challenging the proposed acquisition by The Gillette Company,
a Delaware corporation headquartered in Boston, Massachusetts,
of Parker Pen Holdings Ltd., a British corporation, headquartered
in Newhaven, England, unless they abandon the transaction. John
W. Clark, Acting Assistant Attorney General in charge of the Antitrust
Division, said, "This combination would increase concentration
significantly in an already concentrated market and would likely
increase the prices consumers would pay for premium fountain pens
in the United States." Gillette and Parker are two of the world's
largest manufacturers of writing instruments, including pens and
mechanical pencils. Gillette's worldwide sales of writing instruments
in 1991 were approximately $424 million, and Parker's were approximately
$308 million. Gillette markets premium fountain pens in the United
States through its Stationery Products Group under the Waterman
brand name. Parker sells its premium fountain pens in the United
States through Parker Pen USA Limited, under the Parker brand
name. Retail sales of premium fountain pens in the United States
totaled approximately $46 million in 1991. Gillette's Waterman
brand and the Parker brand each account for approximately 20 percent
of those sales. Gillette and Parker, together with one other company,
control about 80 percent of the premium fountain pen market in
the United States.
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| 3/19/93 |
U.S. v. United States
Bronze Powders. Incorporated
Criminal No.: l:93CR091 (N.D. Ohio)
U.S. v. K. Clive
Ramsey
Criminal No.: 1:93CR092 (N.D. Ohio)
Two one-count informations
were filed in U.S. District Court in Cleveland, Ohio, charging
United States Bronze Powders, Incorporated of Flemington, New
Jersey, and its president, K. Clive Ramsey, with conspiring to
fix prices, in violation of Section 1 of the Sherman Act, of bronze
and copper flake, beginning at least as early as October 1986
and continuing at least until November 1988. Bronze and copper
flake are used in the printing, paint, oil drilling and defense
industries.
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| 3/19/93 |
U.S. v. Fremont Chemical
Co. and Donald J. Aycock
Criminal No.: (D. Wyoming)
Four-count indictment
was filed in U.S. District Court in Cheyenne, Wyoming, charging
Fremont Chemical Co. and its owner, Donald J. Aycock, with bid
rigging and territorial allocation, in violation of Section 1
of the Sherman Act, on the sale of magnesium chloride, a chemical
used to suppress dust on unpaved roads.
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Copies of legal filings are
available from the Legal Procedure Unit, Antitrust Division, Room 3233,
Telephone No.: 514-2481.
93-80
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