JUDGE MAY EXPAND TUNNEY REVIEW OF BELL MERGERS

摘要

The federal judge overseeing a Tunney Act review of the SBC- AT&T and Verizon-MCI mergers said in court Wed. he might broaden the process to include a hearing with sworn testimony from expert witnesses and possible input from the FCC. U.S. Dist. Judge Emmet Sullivan, D.C., told a packed courtroom he wasn抰 comfortable with making a decision based on 揳rguments of attorneys and pieces of paper.?He said he also wanted to hear from people directly involved in the decisions that went into drafting the consent decree that lead to DoJ抯 merger approval. Sullivan also wondered why no consumer groups have sought to intervene in the review. The Tunney Act requires district courts to review DoJ consent decrees that settle antitrust cases to see if they抮e in the public interest. The consent decrees in the Bell mergers sought primarily to remedy situations where the mergers eliminated the only competitors to the Bells in local private line service. nnSullivan said he hadn抰 decided whether to seek additional testimony, but was concerned he wouldn抰 fulfill his responsibility if he didn抰 delve further into the competitive issues that underpin the consent decree. 揑t seems the court has an independent obligation to consider the same [things] the government considered,?he said: 揑t may well be that a record exists to enable the court to carry out its mandate, but I have doubts about that.?It抯 not clear what could happen if the judge found the consent decree lacking. Many participants seemed to think it would be an up or down decision. If he rejected the decree, DoJ might have to file an antitrust suit against the merger parties if it wanted to pursue the issue, a source said. Several financial analysts sat in the audience at the hearing. Paul Gallant of Washington Research Group said nothing in the hearing seemed to be cause for immediate concern for the 2 Bells?standing on Wall Street, but the stiffer review contemplated by Sullivan might set a precedent.