United States v. Motor Vehicle Manufacturers Association of the United States, Inc.

No. CV 69-75-JWC (C.D. Cal. November 17, 1981)

The court vacates its order approving a stipulation of nonrenewal of a consent agreement on grounds that the Department of Justice and defendants failed to comply with the Antitrust Procedures and Penalties Act. The consent agreement prohibited the big four domestic automobile companies and their trade association from sharing confidential information on their emission control technology and conspiring to present a united front to the regulatory agencies on safety and emission standards. Before agreeing to modifying the decree, the Justice Department was required under the Act to file a competitive impact statement explaining the relaxation of the consent decree, discussing alternatives, and soliciting public comments. Therefore, the court vacates the stipulation and orders defendants to file with the court a description of all communications with federal officials relevant to the consent decree relaxation.

Counsel for Plaintiff
Bernard M. Hollander, Gregory B. Hovendon
Antitrust Division
Department of Justice, Washington DC 20530
(202) 633-2494

Counsel for Defendants
Lloyd N. Cutler
Wilmer, Cutler & Pickering
1666 K St. NW, Washington DC 20006
(202) 872-6100

Counsel for Intervenors
David C. Vladeck
Public Citizen Litigation Group
2000 St. NW, Washington DC 20036
(202) 785-3704

[12 ELR 20262]

Curtis, J.:

The Center for Auto Safety having moved to intervene in this action on the ground that it has an interest in challenging the manner by which the Department of Justice has settled this case, an interest which may not be adequately represented to the court by either the defendants or the plaintiff, and it appearing to the court that the Center does in fact have such an interest,

IT IS THEREFORE ORDERED that the motion to intervene be and the same is hereby granted.

The Center having further moved to set aside the order and stipulation of August 3, 1981, upon the ground that the Department of Justice failed to comply with the procedures set forth in the Antitrust Procedures and Penalties Act, 15 U.S.C. § 16, and the court finding that the provisions of the Act are applicable here and must be complied with before the consent decree of October 29, 1969 can be modified.

IT IS THEREFORE ORDERED that the order and stipulation of August 3, 1981 be and the same are hereby vacated and set aside, and that the parties hereto shall comply with the provisions of the Antitrust Procedures and Penalties Act as therein provided before the modified final judgment be presented to the court for approval.