The House Judiciary Committee this week sent a letter to U.S. Attorney General Alberto Gonzales requesting the Department of Justice delay a final decision in the proposed AT&T/BellSouth merger until the District Court of the District of Columbia issues its public interest determination in the mergers of SBC/AT&T and Verizon/MCI.
The letter, written by Chairman F. James Sensenbrenner, Jr. (R-Wis.) and Ranking Member John Conyers, Jr. (D-Mich.), cites the concurrent market impact reviews undertaken by the court under the Antitrust Procedures and Penalities Act — also known as the “Tunney Act” — and its 2004 amendments, and the Justice Department.
The congressmen say a decision in one review could affect the other, so it would behoove the Justice Department to delay its conclusion on AT&T/BellSouth until the court has decided on its two predecessors — SBC’s acquisition of AT&T, and Verizon’s purchase of MCI.
“In the current Tunney Act proceedings, the court is examining the sufficiency of proposed remedies intended to alleviate competitive harm – particularly in the local private line marketplace – associated with the SBC/AT&T and Verizon/MCI mergers. At the same time, the Department is evaluating precisely the same question – whether a proposed merger would produce competitive harm in the local private line market and what remedies could address this harm – in the context of the proposed AT&T/BellSouth merger,” the letter states.
“As a result of this concurrent examination, any court decision in the pending Tunney Act proceedings would necessarily affect the Department’s review and analysis of the proposed AT&T/BellSouth merger.”
The lawmakers add later in their letter, “…compliance with the Tunney Act’s requirement that courts be given authority to substantively review the adequacy of proposed consent decrees entered by the Department of Justice is not only a reasonable request, but a clear directive Congress reaffirmed in its 2004 amendments to the Tunney Act.”
A Justice Department spokeswoman said the agency is aware of the letter and “will respond when appropriate.” She did not say when that would be.
Published reports last week stated that FCC Chairman Kevin Martin was recommending the commission approve the AT&T/BellSouth merger unconditionally. A formal vote on the merger is expected at the FCC’s Oct. 12 meeting.
The House Judiciary Committee letter is the third bipartisan Congressional letter sent to the Justice Department and FCC this week requesting careful review of the AT&T/BellSouth merger. The others come from Senator Mike DeWine (R-OH) and Senator Herb Kohl (D-WI), the Chairman and Ranking Member, respectively, of the Antitrust Subcommittee of the Senate Judiciary Committee; and from Senate Judiciary Committee Ranking member Leahy and Senator Kohl.
