
REVERCOMB,
District Judge.
This
matter is before the Court upon consideration of the Respondent's motion
to alter or amend the Court's judgment of August 17, 1987 and
Petitioner's Reply thereto.
On July
2, 1987, the Assistant Attorney General for Antitrust issued Civil
Investigative Demand (CID) Number 7514 to the National Electrical
Manufacturers Association (NEMA) to obtain market data concerning
medical diagnostic imaging equipment. The CID was issued pursuant to the
Antitrust Division's Clayton Act investigation into the lawfulness,
under the antitrust laws, of the proposed joint venture between the
General Electric Company and Philips N.V. with regard to the manufacture
and sale of medical imaging equipment.
On July
13, 1987, NEMA filed a Petition to Set Aside the CID and the Antitrust
Division moved to deny this petition on July 30, 1987. On August 17,
1987, this Court set aside the Civil Investigative Demand, on the
condition that the Antitrust Division obtain the market data from the
General Electric Company and Philips. On August 24, 1987, the Antitrust
Division moved the Court to amend the judgment, having determined that
neither General Electric nor Philips could supply all the necessary
data. NEMA filed a reply to this motion on August 26, 1987.
The Court
hereby grants the Antitrust Division's motion to amend the judgment. In
1976, Congress amended the Antitrust Civil Process Act, 15 U.S.C. §
1311 (1982), to expand the Assistant Attorney General's authority to
issue CIDs. Under the amended provisions, the Assistant Attorney General
can issue CIDs to third parties to an antitrust investigation as well as
to the companies that are the targets of the investigation. Id. § 1312.
Moreover, legislative history accompanying the 1976 amendments reveals
Congress' intent that the Assistant Attorney General utilize his
expanded CID authority to expedite Clayton Act investigations by
obtaining market data from trade associations. H.R.Rep. No. 1343, 94th
Cong., 2d Sess. 7 (1976) (hereinafter House Report); letter dated
January 22, 1976 to the Hon. Peter W. Rodino, Jr., Chairman,
Subcommittee on Monopolies and Commercial Law, Committee on the
Judiciary, House of Representatives, from Thomas E. Kauper, Assistant
Attorney General in charge of the Antitrust Division, reprinted in House
Report, supra, at 23; Appendix A, example 1, to House Report, supra, at
27. See also S.Rep. No. 803, 94th Cong., 2d Sess. 16 (1976). Recognizing
that trade associations could provide data available from the original
source only after considerable delay, the House endorsed the issuance of
CIDs to trade associations to promote full implementation of the Clayton
Act mandate for pre-consummation investigations. House Report, supra, at
7, 23, 27. This congressional determination makes it incumbent upon this
court to grant respondent's motion to amend the judgment and to order
NEMA to comply with the CID.
The court
recognizes, however, petitioner's need to maximize confidentiality. The
court concludes that petitioner's interest in this regard will be served
by the privacy protections incorporated into the Antitrust Civil Process
Act. The Act prohibits the Antitrust Division from revealing the data in
response to Freedom of Information Act requests. §15 U.S.C. 1314(g). In
addition, the Act requires the designation of an official custodian for
the materials and provides that individuals other than employees or
agents of the Department of Justice may review the materials only with
the consent of the party who produced the materials. §15 U.S.C.
1313(c). The government's use of the materials is governed by the
constraints found in §15 U.S.C. 1312 and § 1313.
Accordingly,
respondent's motion to alter or amend the judgment is granted and the
petitioner's reply is denied.
The Order
entered herein on August 17, 1987 is amended to provide as follows: It
is hereby Ordered, Adjudged, and Decreed that Petitioner NEMA comply,
within two business days of the entry of this order, with Civil
Investigative Demand No. 7514 to the extent that Respondent has not
already obtained the requested materials.
Summary
Analysis <Full-Text>
Case
Index