UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
UNITED STATES OF AMERICA,
Plaintiff,
v.
VISA U.S.A. INC.,
VISA INTERNATIONAL CORP.,AND
MASTERCARD INTERNATIONAL
INCORPORATED,
Defendants.
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Civil Action No. 98-7076 (BSJ)
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DECLARATION OF GEORGE A. ROZANSKI
I, George A. Rozanski, hereby declare as follows:
- I am an economist with the Antitrust Division of the Department
of Justice. I joined the Division in 1985. In October, 1997, I became
Acting Chief of the Economic Regulatory Section, one of the three
sections of the Economic Analysis Group ("EAG") of the Antitrust Division.
In March, 1998, I was appointed Chief of the Economic Regulatory Section.
- EAG is a component of the Antitrust Division with responsibility,
among other things, for analyzing, in conjunction with Antitrust Division
lawyers, the economic issues relating to mergers and acquisitions,
cartel behavior, and other actions which may have anticompetitive
effects. EAG economists work closely with Antitrust Division attorneys
throughout all phases of investigation and pre-filing preparation
for litigation, including: formulating theories to investigate, drafting
interrogatories and document Civil Investigative Demands ("CID"),
creating an investigatory plan, and drafting and asking questions
as part of interviews and pre-complaint depositions.
- It is the practice of EAG economists working on investigations
to prepare memoranda setting forth their recommendations, opinions,
and conclusions concerning the issues at hand. These memoranda typically
include the economists' analysis of information provided to the Antitrust
Division by parties and non-parties to the investigation, as well
as information from publicly available sources, that the economists
or attorneys have determined to be relevant. The memoranda are created
to provide Antitrust Division officials with EAG's candid thoughts,
conclusions, and recommendations as to whether the Division should
challenge the investigated conduct.
- I have reviewed the Declaration of Joel I. Klein and the Schedule
of Documents to the Declaration of Joel I. Klein. I have also reviewed
the Economic Memoranda described in the Schedule.
- I participated in the investigation leading to the filing of the
Complaint in this litigation and supervised other economists within
EAG working on the investigation. These economists include Robert
Town, Andrew Dick, Alexander Raskovich, and Ian Gale, each of whom
authored memoranda listed in the Schedule. Other Antitrust Division
economists also participated in the investigation, including Richard
J. Gilbert, a former Deputy Assistant Attorney General, Andrew S.
Joskow, a former Deputy Assistant Attorney General, Marius Schwartz,
Acting Deputy Assistant Attorney General and Director of Economic
Enforcement, and Gregory Werden, Chief, Appellate Liaison Unit.
- The Economic Memoranda were created as part of EAG's analysis of
the conduct at issue. They set forth economic opinions formulated
as part of the process of giving the economists' written advice to
senior officials of the Antitrust Division, including Joel I. Klein,
as part of the deliberative process that resulted in the decision
to file the Complaint in the above-captioned litigation.
- As Assistant Attorney General Klein describes, the information
contained in the Economic Memoranda reflect the deliberative processes
of the Antitrust Division's lawyers as well as economists. Moreover,
the selection of information to include in those documents reflects
the opinions and judgment of staff of EAG as to what matters were
appropriate for consideration during the deliberations regarding the
investigation and decision to file the Complaint.
- Disclosure of the Economic Memoranda, including the information
selected by Antitrust Division economists to include in the memoranda,
would certainly chill the frank exchange of ideas by economists and
lawyers within the Division. If the Government's representatives are
to come to a fair and correct judgment about when to prosecute, it
is vital that all such representatives be able to give their thoughts
and opinions without concern that the parties being investigated will
later review each of those thoughts in litigation. Such a review would
obviously inhibit, if not put an end to, candid discussions.
I declare under the penalty of perjury that the foregoing is true and correct.
Executed on January 13, 1999, in the District of Columbia.
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_______________/s/________________
George A. Rozanski, Chief
Economic Regulatory Section
Economic Analysis Group
Antitrust Division
United States Department of Justice |
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