SUMMARY OF ANTITRUST ENFORCEMENT ACTIONS
FOR PUBLIC RELEASE
FOR MONDAY JUNE 21, 1993 THROUGH FRIDAY, JULY 2, 1993
v. Florida Drum Company. Inc.
Criminal No.: 93CR294 (N.D. Ga.)
was filed in U.S. District Court in Atlanta, Georgia, charging
Florida Drum Company, Inc. of Pensacola, Florida, with fixing
prices, in violation of Section 1 of the Sherman Act, of new steel
drums offered for sale to customers in Florida, Georgia and North
Carolina, beginning as early as July 1, 1987 and continuing through
July 20, 1989.
Department Implements New Notice Provisions of The National Cooperative
Production Amendments of 1993
The Department of Justice
announced amendments that extend the provisions of the National
Cooperative Research Act of 1984 (NCRA) to include joint ventures
for production and redesignate the NCRA as the National Cooperative
Research and Production Act of 1993 (NCRPA). The NCRA permitted
parties participating in joint research and development ventures
to limit their possible antitrust damage exposure to actual--as
opposed to treble--damages if they filed notifications with the
Attorney General and the Federal Trade Commission (FTC). Under
the NCRPA, parties to a joint venture for production also will
be entitled to obtain the same
protection by filing a
notification with the Attorney General and the Commission. On June
10, 1993, President Clinton signed into law H.R. 1313, the National
Cooperative Production Amendments of 1993 (Pub. L. No. 103-42).
The NCRPA is intended to facilitate innovative and efficient joint
ventures for production, as did the NCRA with respect to joint research
and development ventures.
v. Maxfly Aviation, Inc.
Criminal No.: 93-308 (S.D. Fla.)
was filed in U.S. District Court in Miami, Florida, charging Maxfly
Aviation, Inc. of Naples, Florida, with rigging bids, in violation
of Section 1 of the Sherman Act, on the sale of a Beechcraft King
Air 300 jet aircraft at an auction conducted by the U.S. Bankruptcy
Court in Miami. The company also was charged with bankruptcy fraud
(18 U.S.C. § 152). The investigation, being conducted by
the Antitrust Division with the assistance of the Inspector General
for the Resolution Trust Corporation and the Office of the United
States Trustee, is continuing.
v. Beverly Spinks
Criminal No.: 3:93-CR-227-R (N.D. Tex.)
was filed in U.S. District Court in Dallas, Texas, charging Beverly
Spinks, Wholesale Sales Manager/Branch Manager of Borden, Inc.
in Abilene, Texas, with rigging bids, in violation of Section
1 of the Sherman Act, on contracts to supply fluid milk to public
school districts in west central Texas and the Abilene State School.
Spinks was also charged with conspiring to commit mail fraud (18
U.S.C. § 371) in connection with the bid rigging scheme.
Threatens Challenge of Software Acquisition and Parties Abandon
The Department of Justice
announced that ChipSoft Inc. and MECA Software Inc. have terminated
plans under which ChipSoft would have purchased MECA after the
Department's Antitrust Division said it intended to file a civil
the acquisition. ChipSoft, based in San Diego, sells TurboTax,
the leading brand of consumer tax preparation software, while
MECA, headquartered in Fairfield, Connecticut, is its principal
competitor through its TaxCut software. TurboTax and TaxCut account
for about 75% of all consumer tax preparations software sold in
the United States. "The proposed combination of ChipSoft and MECA
would have given ChipSoft control over the two most popular brands
of consumer tax preparation software," said Anne K. Bingaman,
Assistant Attorney-General in charge of the Antitrust Division.
The merger would have substantially reduced competition and caused
consumers to pay higher prices for popular and useful computer
software. Accordingly, it would have violated Section 7 of the
Clayton Act. Consumer tax preparation software enables an individual
to prepare an income tax return with the assistance of a personal
computer. Only-two other firms are significant competitors in
Copies of legal filings are
available from the Legal Procedure Unit, Antitrust Division, Room 3233,
Telephone No.: 514-2481.