United States v. Bemis Company, Inc., et al.; Public Comments and Response on Proposed Final Judgment, 33637-33641 [2010-14121]
Download as PDF
Federal Register / Vol. 75, No. 113 / Monday, June 14, 2010 / Notices
If additional information is required,
please contact, Clearance Officer,
United States Department of Justice,
Justice Management Division, Policy
and Planning Staff, Patrick Henry
Building, Suite 1600, 601 D Street, NW.,
Washington, DC 20530.
Dated: June 8, 2010.
Lynn Bryant,
Department Clearance Officer, United States
Department of Justice.
[FR Doc. 2010–14119 Filed 6–11–10; 8:45 am]
BILLING CODE 4410–18–P
DEPARTMENT OF JUSTICE
Drug Enforcement Administration
[OMB Number 1117–0042]
Agency Information Collection
Activities: Proposed Collection;
Comments Requested: National
Clandestine Laboratory Seizure Report
30-Day notice of information
collection under review.
emcdonald on DSK2BSOYB1PROD with NOTICES
ACTION:
The Department of Justice (DOJ), Drug
Enforcement Administration (DEA) will
be submitting the following information
collection request to the Office of
Management and Budget (OMB) for
review and approval in accordance with
the Paperwork Reduction Act of 1995.
The proposed information collection is
published to obtain comments from the
public and affected agencies. This
proposed information collection was
previously published in the Federal
Register Volume 75, Number 72, page
19658 on April 15, 2010, allowing for a
60 day comment period.
The purpose of this notice is to allow
for an additional 30 days for public
comment until July 14, 2010. This
process is conducted in accordance with
5 CFR 1320.10.
Written comments and/or suggestions
regarding the items contained in this
notice, especially the estimated public
burden and associated response time,
should be directed to the Office of
Management and Budget, Office of
Information and Regulatory Affairs,
Attention Department of Justice Desk
Officer, Washington, DC 20503.
Additionally, comments may be
submitted to OMB via facsimile to
(202) 395–5806. Written comments and
suggestions from the public and affected
agencies concerning the proposed
collection of information are
encouraged.
Your comments should address one or
more of the following four points:
• Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
VerDate Mar<15>2010
16:40 Jun 11, 2010
Jkt 220001
functions of the agency, including
whether the information will have
practical utility;
• Evaluate the accuracy of the
agencies estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used;
• Enhance the quality, utility, and
clarity of the information to be
collected; and
• Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submission of
responses.
Overview of Information Collection
1117–0042
(1) Type of Information Collection:
Extension of a currently approved
collection.
(2) Title of the Form/Collection:
National Clandestine Laboratory Seizure
Report.
(3) Agency form number, if any and
the applicable component of the
Department sponsoring the collection:
Form number: EPIC Form 143.
Component: El Paso Intelligence
Center, Drug Enforcement
Administration, U.S. Department of
Justice.
(4) Affected public who will be asked
or required to respond, as well as a brief
abstract:
Primary: State, Local or Tribal
Government.
Other: None.
Abstract: Records in this system are
used to provide clandestine laboratory
seizure information to the El Paso
Intelligence Center, Drug Enforcement
Administration, and other Law
enforcement agencies, in the discharge
of their law enforcement duties and
responsibilities.
(5) An estimate of the total number of
respondents and the amount of time
estimated for an average respondent to
respond: There are one thousand
twenty-seven (1027) total respondents
for this information collection. Three
thousand seven hundred fifty-four
(3754) responded using paper at 1 hour
a response and five thousand four
hundred seven (5407) responded
electronically at 1 hour a response, for
nine thousand one hundred sixty-one
(9161) annual responses.
(6) An estimate of the total public
burden (in hours) associated with the
collection: It is estimated that there are
9161 annual burden hours associated
with this collection.
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
33637
If additional information is required
contact: Lynn Bryant, Department
Clearance Officer, United States
Department of Justice, Justice
Management Division, Policy and
Planning Staff, Patrick Henry Building,
Suite 1600, 601 D Street, NW.,
Washington, DC 20530.
Dated: June 8, 2010.
Lynn Bryant,
Department Clearance Officer, PRA, U.S.
Department of Justice.
[FR Doc. 2010–14117 Filed 6–11–10; 8:45 am]
BILLING CODE 4410–09–P
DEPARTMENT OF JUSTICE
Antitrust Division
United States v. Bemis Company, Inc.,
et al.; Public Comments and Response
on Proposed Final Judgment
Pursuant to the Antitrust Procedures
and Penalties Act, 15 U.S.C. 16(b)–(h),
the United States hereby publishes
below the comments received on the
proposed Final Judgment in United
States v. Bemis Co. et al., Civil Action
No. 1:10–CV–00295–CKK, which were
filed in the United States District Court
for the District of Columbia on June 7,
2010, together with the response of the
United States to the comments.
Copies of the comments and the
response are available for inspection at
the Department of Justice Antitrust
Division, 450 Fifth Street, NW., Suite
1010, Washington, DC 20530
(telephone: 202–514–2481), on the
Department of Justice’s Web site at
https://www.usdoj.gov/atr, and at the
Office of the Clerk of the United States
District Court for the District of
Columbia, 333 Constitution Avenue,
NW., Washington, DC 20001. Copies of
any of these materials may be obtained
upon request and payment of a copying
fee.
J. Robert Kramer II,
Director of Operations and Civil Enforcement.
United States District Court for the
District of Columbia United States of
America, Plaintiff, v. Bemis Company,
Inc., and Rio Tinto PLC, and Alcan
Corporation, Defendants.
Case No.: 1:10–CV–00295.
Judge: Kollar-Kotelly, Colleen.
Deck Type: Antitrust.
Date Stamp:
Response of Plaintiff United States to
Public Comments on the Proposed Final
Judgment
Pursuant to the requirements of the
Antitrust Procedures and Penalties Act,
E:\FR\FM\14JNN1.SGM
14JNN1
33638
Federal Register / Vol. 75, No. 113 / Monday, June 14, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
15 U.S.C. 16(b)–(h) (‘‘APPA’’ or ‘‘Tunney
Act’’), the United States hereby responds
to the public comments received
regarding the proposed Final Judgment
in this case. After careful consideration
of the comments, the United States
continues to believe that the proposed
Final Judgment will provide an effective
and appropriate remedy for the antitrust
violations alleged in the Complaint. The
United States will move the Court for
entry of the proposed Final Judgment
after the public comments and this
response have been published in the
Federal Register, pursuant to 15 U.S.C.
16(d).
On February 24, 2010, the United
States filed the Complaint in this matter
alleging that the proposed acquisition of
the Alcan Packaging Food Americas
business of Rio Tinto plc (‘‘Rio Tinto’’)
by Bemis Company, Inc. (‘‘Bemis’’)
would violate Section 7 of the Clayton
Act, 15 U.S.C. 18. Simultaneously with
the filing of the Complaint, the United
States filed a proposed Final Judgment
and a Hold Separate Stipulation and
Order (‘‘HSSO’’) signed by plaintiff and
the defendants, consenting to the entry
of the proposed Final Judgment after
compliance with the requirements of the
Tunney Act, 15 U.S.C. 16. Pursuant to
those requirements, the United States
filed its Competitive Impact Statement
(‘‘CIS’’) in this Court, also on February
24, 2010; published the proposed Final
Judgment and CIS in the Federal
Register on March 4, 2010, see United
States v. Bemis Company, Inc. et al., 75
FR 9929; and published summaries of
the terms of the proposed Final
Judgment and CIS, together with
directions for the submission of written
comments relating to the proposed Final
Judgment, in The Washington Post for
seven days beginning on March 10, 2010
and ending on March 16, 2010. The 60day period for public comments ended
on May 15, 2010; three comments were
received as described below and
attached hereto.
I. The Investigation and Proposed
Resolution
On July 5, 2009, Bemis and Rio Tinto
entered into an agreement for Bemis to
acquire the Alcan Packaging Food
Americas business (‘‘Alcan’’) from Rio
Tinto. For the next seven months, the
United States Department of Justice
(‘‘Department’’) conducted an extensive,
detailed investigation into the likely
competitive effects of the Bemis/Rio
Tinto transaction. As part of this
investigation, the Department obtained
substantial documents and information
from the merging parties and issued 21
Civil Investigative Demands to third
parties. In all, the Department received
VerDate Mar<15>2010
16:40 Jun 11, 2010
Jkt 220001
and considered more than 35 boxes of
hard copy material and over 682,000
electronic documents. The Department
also conducted over 44 primary
interviews and multiple follow-up
interviews with customers, competitors,
and other individuals with knowledge
of the flexible-packaging industry. The
investigative staff carefully analyzed the
information provided and thoroughly
considered all of the issues presented.
The Department considered the
potential competitive effects of the
transaction on the development,
production, and sale of flexible
packaging sold in North America, and
concluded that Bemis’s acquisition of
Alcan likely would substantially lessen
competition in the development,
production, and sale of flexiblepackaging rollstock for chunk, sliced,
and shredded natural cheese packaged
for retail sale and flexible-packaging
shrink bags for fresh meat in the United
States and Canada.
As explained more fully in the
Complaint and CIS, the acquisition of
Alcan by Bemis would have
substantially increased concentration
and lessened competition in the
development, production, and sale of
flexible-packaging rollstock for chunk,
sliced, and shredded natural cheese
packaged for retail sale and flexiblepackaging shrink bags for fresh meat in
the United States and Canada. The
acquisition effectively would have
reduced the number of suppliers of
flexible-packaging rollstock for chunk,
sliced, and shredded natural cheese
packaged for retail sale from two to one,
would have eliminated competition
between Bemis and Alcan with respect
to those products, and would have
increased the likelihood that Bemis
would unilaterally increase prices to a
significant number of customers. The
acquisition also would have reduced the
number of suppliers of flexiblepackaging shrink bags for fresh meat
from three to two, would have
eliminated the competition between
Bemis and Alcan with respect to that
product, and would have facilitated
coordination between Bemis and the
remaining supplier of shrink bags for
fresh meat. The Department therefore
filed its Complaint alleging competitive
harm in the development, production,
and sale of the aforementioned product
markets in the United States and
Canada, and sought a remedy that
would ensure that such harm is
prevented. The proposed Final
Judgment requires the divestiture of
sufficient assets to prevent the increase
in concentration that likely would have
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
resulted from the acquisition of Alcan
by Bemis.
II. Summary of Public Comments and
the United States’s Response
During the 60-day comment period,
the United States received comments
from three individuals: (1) A Concerned
Menasha Citizen (unsigned); (2) Ms.
Sheri Lemmers; and (3) Mr. Stuart
Springstube. The comments, which are
attached to this response, raise a single,
overarching concern: That the former
Alcan plant in Menasha, Wisconsin (the
‘‘Menasha facility’’) should not be ‘‘split’’
between Bemis and the acquirer of the
divested business, as required by the
proposed Final Judgment.
The proposed Final Judgment requires
the divestiture of the Menasha facility in
order to preserve competition in the
markets for flexible-packaging rollstock
for chunk, sliced, and shredded natural
cheese packaged for retail sale.
However, the Menasha facility contains
a stand-alone wax-coating operation in
addition to its production facilities for
flexible-packaging for natural cheese.
The terms of the proposed Final
Judgment allow Bemis to move the
waxcoating operation from Menasha to
another of Bemis’s plants and allow
Bemis access to the Menasha facility for
a limited period of time post-divestiture
in order to effectuate that transfer.
The United States has reviewed the
comments submitted and has
determined that the proposed Final
Judgment remains in the public interest.
A. Summary of Public Comments
The commenters argue that the waxcoating operations should not be
removed from the Menasha facility
because it will be detrimental both to
that operation and to the operations that
remain in the plant. See Concerned
Comment at 2; Lemmers Comment at 1;
Springstube Comment. In addition, the
commenters claim that the presence of
competing companies in the plant has,
and will continue to cause, the
following problems: (1) Former coworkers are now competitors and
cannot communicate freely with each
other, see Lemmers Comment at 1;
Concerned Comment at I; Springstube
Comment; and (2) managers for the
competing entities are fighting over
supplies and tools needed by each
company to do its work.1 Concerned
Comment at I; Lemmers Comment at 1.
1 One commenter is also concerned about the
scheduling and leave policies that Bemis has
instituted since taking over the Menasha plant. See
Lemmers Comment at 1–2. These concerns are
beyond the scope of the Department’s investigation
into the potential competitive harms associated
with Bemis’s purchase of Alcan.
E:\FR\FM\14JNN1.SGM
14JNN1
Federal Register / Vol. 75, No. 113 / Monday, June 14, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
B. The United States’s Response
The concerns expressed in the
comments do not provide a basis to alter
the proposed Final Judgment. The
Menasha plant is a key component of
the proposed divestiture package. It
represents a critical base of knowledge
and expertise that is necessary for the
acquirer of the divested business to
compete successfully with Bemis in the
markets for flexible-packaging rollstock
for chunk, sliced, and shredded natural
cheese packaged for retail sale.
However, the wax-coating operation at
the Menasha facility is unrelated to the
production of flexible packaging for
natural cheese.
The Department investigated whether
removing the wax-coating operation
from Menasha would adversely affect
the viability of the plant. The
Department reviewed blueprints of the
Menasha facility, visited and toured the
plant, interviewed plant management,
reviewed Bemis’s plans for phased
removal of the wax-coating operation
from Menasha, and reviewed the plant’s
operational and financial documents.
After careful consideration of this
information, the Department determined
that, because the wax-coating operation
is largely confined to a discrete area of
the plant, it could be moved by Bemis
to another facility with minimal
disturbance to the overall operation of
the plant. The Department also
determined that the plant would remain
a competitive and profitable business
entity without the wax-coating
operation. Finally, the Department
determined that the acquirer of the
divested business, as the sole owner of
the Menasha facility and Bemis’s
landlord, would be well-positioned to
manage Bemis’s exit from the plant.2
This is not to imply, however, that
Bemis will be able to remove the waxcoating operation from the Menasha
facility without making any changes to
the plant or its operations. Certain
accommodations, as reflected in the
language of the proposed Final
Judgment, must be made in order to
preserve future competition between
Bemis and the acquirer of the divested
business and limit the interaction of the
two businesses while the wax-coating
operation is being removed. For
example, while the proposed Final
2 One of the commenters also expressed a concern
that Bemis would take over the wax-coating
operation only to destroy it. See Concerned
Comment at 1. This concern is not well founded.
Bemis specifically asked to retain the wax-coating
operation and is moving it at great expense. Thus,
while the wax-coating operation no longer will exist
at the Menasha plant, the Department has no reason
to believe that Bemis will not continue to produce
and sell wax-coated products at its own facilities.
VerDate Mar<15>2010
16:40 Jun 11, 2010
Jkt 220001
Judgment allows Bemis to occupy the
portions of the facility utilized for the
wax-coating operation, it also requires
that removal of that operation be
completed within three years of the
closing of the transaction.3 The
proposed Final Judgment also requires
that, within three months of the closing
of the transaction, Bemis create physical
barriers in the Menasha facility to
separate its business activities from
those of the acquirer of the divested
business while removal of the waxcoating operation is occurring.
It appears that Bemis’s very
compliance with the requirements of the
proposed Final Judgment have given
rise to the commenters’ concerns about
diminished working relationships
within the Menasha plant. However, the
Department continues to believe that
compliance with those requirements is
necessary to preserve current and future
competition between Bemis and the
acquirer of the divested business.
III. Standard of Judicial Review
The APPA requires that proposed
consent judgments in antitrust cases
brought by the United States be subject
to a sixty-day comment period, after
which the court shall determine
whether entry of the proposed Final
Judgment ‘‘is in the public interest.’’ 15
U.S.C. 16(e)(l). In making that
determination in accordance with the
statute, the court is required to consider:
(A) the competitive impact of such
judgment, including termination of alleged
violations, provisions for enforcement and
modification, duration of relief sought,
anticipated effects of alternative remedies
actually considered, whether its terms are
ambiguous, and any other competitive
considerations bearing upon the adequacy of
such judgment that the court deems
necessary to a determination of whether the
consent judgment is in the public interest;
and
(B) the impact of entry of such judgment
upon competition in the relevant market or
markets, upon the public generally and
individuals alleging specific injury from the
violations set forth in the complaint
including consideration of the public benefit,
if any, to be derived from a determination of
the issues at trial.
15 U.S.C. 16(e)(1)(A)–(B). In considering
these statutory factors, the court’s
inquiry is necessarily a limited one as
the government is entitled to ‘‘broad
discretion to settle with the defendant
within the reaches of the public
interest.’’ United States v. Microsoft
Corp., 56 F.3d 1448, 1461 (D.C. Cir.
1995); see generally United States v.
3 The three-year time frame was determined to be
necessary in order to allow Bemis to continue to
supply wax-coated products to customers during
the transition.
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
33639
SBC Commc’ns, Inc., 489 F. Supp. 2d 1
(D.D.C. 2007) (assessing public interest
standard under the Tunney Act); United
States v. InBev N. V./S.A., 2009–2 Trade
Cas. (CCH) ¶ 76,736, No. 08–1965 (JR),
2009 U.S. Dist. LEXIS 84787, at *3
(D.D.C. Aug. 11, 2009) (noting that the
court’s review of a consent judgment is
limited and only inquires ‘‘into whether
the government’s determination that the
proposed remedies will cure the
antitrust violations alleged in the
complaint was reasonable, and whether
the mechanisms to enforce the Final
Judgment are clear and manageable’’).
As the United States Court of Appeals
for the District of Columbia Circuit has
held, under the APPA, a court
considers, among other things, the
relationship between the remedy
secured and the specific allegations set
forth in the government’s complaint,
whether the decree is sufficiently clear,
whether enforcement mechanisms are
sufficient, and whether the decree may
positively harm third parties. See
Microsoft, 56 F.3d at 1458–62. With
respect to the adequacy of the relief
secured by the decree, a court may not
‘‘engage in an unrestricted evaluation of
what relief would best serve the public.’’
United States v. BNS, Inc., 858 F.2d 456,
462 (9th Cir. 1988) (citing United States
v. Bechtel Corp., 648 F.2d 660, 666 (9th
Cir. 1981)); see also Microsoft, 56 F.3d
at 1460–62; United States v. Alcoa, Inc.,
152 F. Supp. 2d 37, 40 (D.D.C. 2001);
InBev, 2009 U.S. Dist. LEXIS 84787, at
*3 Courts have held that:
[t]he balancing of competing social and
political interests affected by a proposed
antitrust consent decree must be left, in the
first instance, to the discretion of the
Attorney General. The court’s role in
protecting the public interest is one of
insuring that the government has not
breached its duty to the public in consenting
to the decree. The court is required to
determine not whether a particular decree is
the one that will best serve society, but
whether the settlement is ‘‘within the reaches
of the public interest.’’ More elaborate
requirements might undermine the
effectiveness of antitrust enforcement by
consent decree.
Bechtel, 648 F.2d at 666 (emphasis
added) (citations omitted).4 In
determining whether a proposed
settlement is in the public interest, the
4 Cf. BNS, 858 F.2d at 464 (holding that the
court’s ‘‘ultimate authority under the [APPA] is
limited to approving or disapproving the consent
decree’’); United States v. Gillette Co., 406 F. Supp.
713, 716 (D. Mass. 1975) (noting that, in this way,
the court is constrained to ‘‘look at the overall
picture not hypercritically, nor with a microscope,
but with an artist’s reducing glass’’). See generally
Microsoft, 56 F.3d at 1461 (discussing whether ‘‘the
remedies [obtained in the decree are] so
inconsonant with the allegations charged as to fall
outside of the ’reaches of the public interest’’).
E:\FR\FM\14JNN1.SGM
14JNN1
33640
Federal Register / Vol. 75, No. 113 / Monday, June 14, 2010 / Notices
emcdonald on DSK2BSOYB1PROD with NOTICES
court ‘‘must accord deference to the
government’s predictions about the
efficacy of its remedies, and may not
require that the remedies perfectly
match the alleged violations.’’ SBC
Commc’ns, 489 F. Supp. 2d at 17; see
also Microsoft, 56 F.3d at 1461 (noting
the need for courts to be ‘‘deferential to
the government’s predictions as to the
effect of the proposed remedies’’);
United States v. Archer-DanielsMidland Co., 272 F. Supp. 2d 1, 6
(D.D.C. 2003) (noting that the court
should grant due respect to the United
States’ prediction as to the effect of
proposed remedies, its perception of the
market structure, and its views of the
nature of the case).
Courts have greater flexibility in
approving proposed consent decrees
than in crafting their own decrees
following a finding of liability in a
litigated matter. ‘‘[A] proposed decree
must be approved even if it falls short
of the remedy the court would impose
on its own, as long as it falls within the
range of acceptability or is ’within the
reaches of public interest.’’ United
States v. Am. Tel. & Tel. Co., 552 F.
Supp. 131, 151 (D.D.C. 1982) (citations
omitted) (quoting United States v.
Gillette Co., 406 F. Supp. 713, 716 (D.
Mass. 1975)), aff’d sub nom. Maryland
v. United States, 460 U.S. 1001(1983);
see also United States v. Alcan
Aluminum Ltd., 605 F. Supp. 619, 622
(W.D. Ky. 1985) (approving the consent
decree even though the court would
have imposed a greater remedy).
Therefore, the United States ‘‘need only
provide a factual basis for concluding
that the settlements are reasonably
adequate remedies for the alleged
harms.’’ SBC Commc’ns, 489 F. Supp. 2d
at 17.
Moreover, in its 2004 amendments to
the Tunney Act,5 Congress made clear
its intent to preserve the practical
benefits of utilizing consent decrees in
antitrust enforcement, stating ‘‘[n]othing
in this section shall be construed to
require the court to conduct an
evidentiary hearing or to require the
court to permit anyone to intervene.’’ 15
U.S.C. 16(e)(2). The language wrote into
the statute what Congress intended
when it enacted the Tunney Act in
1974, as Senator Tunney explained:
‘‘[t]he court is nowhere compelled to go
to trial or to engage in extended
5 The 2004 amendments substituted the word
‘‘shall’’ for ‘‘may’’ when directing the courts to
consider the enumerated factors and amended the
list of factors to focus on competitive considerations
and address potentially ambiguous judgment terms.
Compare 15 U.S.C. 16(e) (2004), with 15 U.S.C.
16(e)(1) (2006); see also SBC Commc’ns, 489 F.
Supp. 2d at 11 (concluding that the 2004
amendments ‘‘effected minimal changes’’ to Tunney
Act review).
VerDate Mar<15>2010
16:40 Jun 11, 2010
Jkt 220001
proceedings which might have the effect
of vitiating the benefits of prompt and
less costly settlement through the
consent decree process.’’ 119 Cong. Rec.
24,598 (1973) (statement of Senator
Tunney). Rather, the procedure for the
public-interest determination is left to
the discretion of the court, with the
recognition that the court’s ‘‘scope of
review remains sharply proscribed by
precedent and the nature of Tunney Act
proceedings.’’ SBC Commc’ns, 489 F.
Supp.2d at 11.6
IV. Conclusion
The issues raised in the public
comments were among the many
considered during the United States’s
extensive and thorough investigation.
Pursuant to this investigation, the
United States has determined that the
Menasha facility will remain a
competitive and profitable business
entity competing in the development,
production, and sale of flexiblepackaging rollstock for chunk, sliced,
and shredded natural cheese packaged
for retail sale. The United States also
has determined that the proposed Final
Judgment as drafted provides an
effective and appropriate remedy for the
antitrust violations alleged in the
Complaint, and is therefore in the
public interest. The United States will
move this Court to enter the proposed
Final Judgment after the comments and
this response are published in the
Federal Register.
Dated: June 7, 2010.
Respectfully submitted:
Rachel Adcox,
United States Department of Justice,
Antitrust Division, Litigation II Section, 450
5th Street, N.W., Suite 8700,
Washington, DC 20530, (202) 616–3302,
rachel.adcox@usdoj.gov.
Certificate of Service
I, Rachel J. Adcox, hereby certify that
on June 7, 2010, I caused a copy of the
foregoing Response of Plaintiff United
States to Public Comments on the
6 See United States v. Enova Corp., 107 F. Supp.
2d 10, 17 (D.D.C. 2000) (noting that the ‘‘Tunney
Act expressly allows the court to make its public
interest determination on the basis of the
competitive impact statement and response to
comments alone’’); United States v. Mid-Am.
Dairymen, Inc., 1977–1 Trade Cas. (CCH) ¶ 61,508,
at 71,980 (W.D. Mo. 1977) (‘‘Absent a showing of
corrupt failure of the government to discharge its
duty, the Court, in making its public interest
finding, should * * * carefully consider the
explanations of the government in the competitive
impact statement and its responses to comments in
order to determine whether those explanations are
reasonable under the circumstances.’’); S. Rep. No.
93–298, 93d Cong., 1st Sess., at 6 (1973) (‘‘Where
the public interest can be meaningfully evaluated
simply on the basis of briefs and oral arguments,
that is the approach that should be utilized.’’)
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
Proposed Final Judgment to be served
upon defendants Bemis Company, Inc.,
Rio Tinto plc, and Alcan Corporation by
mailing the documents electronically to
the duly authorized legal
representatives of defendants as follows:
Counsel for Defendant Bemis
Company, Inc.:
Stephen M. Axinn, Esq., John D.
Harkrider, Esq., Axinn, Veltrop &
Harkrider LLP, 114 West 47th Street,
New York, NY 10036, (212) 728–2200,
sma@avhlaw.com, jdh@avhlaw.com.
Counsel for Defendants Rio Tinto plc
and Aican Corporation:
Steven L. Holley, Esq., Bradley P. Smith,
Esq., Sullivan & Cromwell LLP, 125
Broad Street, New York, NY 10004,
(212) 558–4737,
holleys@sullcrom.com,
smithbr@sullcrom.com.
I further certify that on June 7, 2010,
I caused a copy of the foregoing to be
delivered electronically and via U.S.
mail, postage prepaid, to the following
person:
Mr. Stuart Springstube, N6960 County
Rd-A, Weyauwega, WI 54983,
Sspringstube@mwwb.net.
Rachel J. Adcox, Esq.,
United States Department of Justice,
Antitrust Division, Litigation II Section, 450
Fifth Street, N.W., Suite 8700, Washington,
D.C. 20530, (202) 616–3302.
March 27, 2010
Maribeth Petrizzi,
Chief Litigation II Section.
Antitrust Division, U.S. Department of
Justice, 450 Fifth Street, N.W., Suite 8700,
Washington, D.C. 20530.
To: Maribeth Petrizzi
RE: Bemis/Alcan Acquisition
The proposal that the DOJ has allowed
with the Bemis/Alcan acquisition is and will
continue to be detrimental to the community
of Menasha. It will also have an impact on
the cheese industry. The turmoil that is
running through the Menasha Plant is
devastating the business. Bemis has walked
in the doors and caused great chaos in the
plant. The people chosen to go with Bemis
are all unsure of their future and worry about
what plans are for the future of the wax
business. At the present time those
employees feel Bemis will destroy the
business in due time. Remedy Company is
also unsure of their future. Bemis is doing
everything in their power to take business
that does not involve the cheese business and
they are out to destroy what is left of Remedy
Company. Remedy Company is taking a
stance that everything in the mill is theirs
and that they will need it to continue
business. On the other hand Bemis is being
left with nothing. Simply trying to start up
offices has become mission impossible. They
will not provide essential items such as office
furniture and computers. The hourly
machine workers in this plant have created
relationships over long periods of time in this
E:\FR\FM\14JNN1.SGM
14JNN1
emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 113 / Monday, June 14, 2010 / Notices
facility and they are being asked not to talk
to an old friend. Living in America gives us
the right to freedom of speech, but Bemis and
the DOJ is trying to take that away. Give the
people of the plant some dignity and
sympathy, you are destroying a successful
plant that through the years has brought
business into the community of Menasha,
and to the local cheese manufactures of the
surrounding area.
The City of Menasha spent millions of
dollars five years ago to bring more and new
equipment into the Menasha facility. The city
funded part of the expense to reroute the city
street to make Menasha Plant a growth of
opportunity. The community of Menasha
found this to be a great addition to their city.
It brought jobs to the area, revenue to local
businesses, and a sense of pride back to their
community. Bemis and the DOJ has taken all
of that away. It was not only in the best
interest of the employees at Alcan but it was
in the best interest of Menasha to keep this
plant going.
I hope that the DOJ takes a closer look at
the destruction that Bemis has caused. Look
at what this will do to the surrounding area
and how it will affect the City of Menasha.
This acquisition did not have to take place
as it did. Bemis could have chosen to leave
Menasha Plant alone and let them strive to
be a small but competitive business. Leave
the employees in tack and let the business
make or break on its own. Bemis has toured
the plant and taken everything they desired
from it, they have taken knowledgeable
people and trades and will survive. Now it
seems as though their final goal is too bury
Remedy Company and soon after the wax
business will come to an end.
Sincerely,
A Concerned Menasha Citizen
March 26, 2010
Maribeth Petrizzi
Chief Litigation II Section
Antitrust Division
U.S. Department of Justice
450 Fifth Street, N.W.,
Suite 8700
Washington, D.C. 20530
Dear Maribeth Petrizzi,
I am writing in concern of the Bemis/Alcan
acquisition, and currently work within the
Menasha Plant where complete chaos takes
place on a daily basis. It was the employees
understanding that this transition is not to
interrupt the work on either side of the sale.
Unfortunately everyday is a battle zone,
management is very cut throat on daily work
supplies and tools that are needed by each
side to conduct business as usual. There are
supervisors and managers hoarding things
just so others can not use them. There is
bitterness throughout the plant and
unrespectable and unprofessional talk among
everyone. This plant has been very successful
over the years and that is due to the loyalty
and companionship that coworkers have
with each other. Since Bemis has taken over
this building it has mined long time
friendships and reputations of mangers and
supervisors that were once respected. We
have a Plant Manager and an Operations
Manager on opposite sides of the fence now
and it leads to baffles on a daily basis.
VerDate Mar<15>2010
16:40 Jun 11, 2010
Jkt 220001
Employees have lost a lot since this
purchase was allowed, customers are
disappointed that Bemis has the advantage,
and the community of Menasha, Wisconsin
is losing a great plant that brings money into
their community.
I am disappointed in the decision that the
Department of Justice came to. This plant
should not be divided and can only survive
as one. Relocating departments from this mill
is detrimental to the success of the remaining
Menasha Plant. Bemis seems to be doing
everything in their power to make sure that
Menasha no longer will exist. Back in
November of 2009 Bemis came in and met
with potential employees and said that we
were very valuable employees to them, that
they cared about us. I would like to know
when the caring comes into play. They are
currently forcing some of the people that they
have chosen to stay with them to work 12
hours a day seven days a week. They also do
not allow for personal days during this time
nor will they excuse any doctor’s
appointments that you may have scheduled.
Many of these employees do not have regular
scheduled shifts and it is very difficult to
schedule appointments, as you well know
some doctors require you to schedule
appointments anywhere from three to six
months in advance. Bemis claims they care
about your health and want you to be healthy
but yet I can not be a half hour late for work
or I will disciplined with an occasion. Five
occasions are allowed within a year’s
timeframe and it takes you a year from the
date of a call in to get that occasion back. Life
today is busy and fast paced, people need to
live life and enjoy it. Yet I can not
understand how I am to enjoy my life
working seven days a week twelve hours a
day and expect to function normally. Granted
this system is not suppose to remain for long,
but who has given them a timeline for how
long they can abuse employees. We are
humans, not animals! It is offensive to work
for such an employer that cares nothing
about life and family.
I am in hopes that this hostile takeover
ends in peace and that the DOJ reconsiders
their proposal. This plant has always been a
success story for the company and
community and now it has turned into a
bloody battle field. I believe that it is in the
best interest of everyone including the DOJ
to reconsider the ruling that was made. How
would you like to walk into a war zone
everyday wondering who is going to belittle
you and who was going to be respectable to
you? It’s a question that employees should
not even have to think about.
Sincerely,
Sheri Lemmers
March 27, 2010
Maribeth Petrizzi
U.S. Department of Justice,
450 Fifth Street, N.W., Suite 8700,
Washington, D.C. 20530.
Dear Friend,
This letter is in regards’ to your decision
in the Bemis acquisition of Alcan. I am a
employee of the Alcan plant in Menasha and
the decision to split our plant into two
separate plants is a death sentence for many
of us maybe all of us. Our plant was an
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
33641
example of how an America plant can be
successful. Put now we are being forced to
be split the plant and compete against our
self. Bemis should have been allowed to have
the whole plant or non of it. I am not great
at writing letters if you would give me ten
minutes of your time I could explain this
better. PLEASE call me. I strongly encourage
you to change your decision, I need this job
not an unemployment check. Let Bemis have
the Menasha plant.
Sincerely,
Stuart S. Springstube
[FR Doc. 2010–14121 Filed 6–11–10; 8:45 am]
BILLING CODE 4410–11–M
DEPARTMENT OF LABOR
Employment and Training
Administration
Announcement of the Career Videos
for America’s Job Seekers Challenge;
Correction
AGENCY: Employment and Training
Administration, Department of Labor.
ACTION: Notice; correction.
SUMMARY: The Department of Labor
published a document in the Federal
Register of May 18, 2010, announcing
the Career Videos for America’s Job
Seekers Challenge. The dates for all
phases of this Video Challenge have
been extended. This document contains
corrections to the dates published on
that date on page 27824, columns two
and three.
SUPPLEMENTARY INFORMATION: In the
Federal Register of May 18, 2010, page
27824, column two under
SUPPLEMENTARY INFORMATION, first
paragraph, beginning with line 15, the
corrected dates should read:
Phase 1 will run from May 10 to
August 20, 2010. In this phase, the
general public, associations, and/or
employers can submit their
occupational video for one of the 15
occupational categories to https://
www.dolvideochallenge.ideascale.com.
The submitted occupational videos
should pertain to one of the following
occupations:
1. Biofuels Processing Technicians;
2. Boilermakers;
3. Carpenters;
4. Computer Support Specialists;
5. Energy Auditors;
6. Heating, Air Conditioning, and
Refrigeration Mechanics and Installers/
Testing Adjusting and Balancing (TAB)
Technicians;
7. Licensed Practical and Licensed
Vocational Nurse;
8. Medical Assistants;
9. Medical and Clinical Lab
Technicians including
Cytotechnologists;
E:\FR\FM\14JNN1.SGM
14JNN1
Agencies
[Federal Register Volume 75, Number 113 (Monday, June 14, 2010)]
[Notices]
[Pages 33637-33641]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14121]
-----------------------------------------------------------------------
DEPARTMENT OF JUSTICE
Antitrust Division
United States v. Bemis Company, Inc., et al.; Public Comments and
Response on Proposed Final Judgment
Pursuant to the Antitrust Procedures and Penalties Act, 15 U.S.C.
16(b)-(h), the United States hereby publishes below the comments
received on the proposed Final Judgment in United States v. Bemis Co.
et al., Civil Action No. 1:10-CV-00295-CKK, which were filed in the
United States District Court for the District of Columbia on June 7,
2010, together with the response of the United States to the comments.
Copies of the comments and the response are available for
inspection at the Department of Justice Antitrust Division, 450 Fifth
Street, NW., Suite 1010, Washington, DC 20530 (telephone: 202-514-
2481), on the Department of Justice's Web site at https://www.usdoj.gov/atr, and at the Office of the Clerk of the United States District Court
for the District of Columbia, 333 Constitution Avenue, NW., Washington,
DC 20001. Copies of any of these materials may be obtained upon request
and payment of a copying fee.
J. Robert Kramer II,
Director of Operations and Civil Enforcement.
United States District Court for the District of Columbia United States
of America, Plaintiff, v. Bemis Company, Inc., and Rio Tinto PLC, and
Alcan Corporation, Defendants.
Case No.: 1:10-CV-00295.
Judge: Kollar-Kotelly, Colleen.
Deck Type: Antitrust.
Date Stamp:
Response of Plaintiff United States to Public Comments on the Proposed
Final Judgment
Pursuant to the requirements of the Antitrust Procedures and
Penalties Act,
[[Page 33638]]
15 U.S.C. 16(b)-(h) (``APPA'' or ``Tunney Act''), the United States
hereby responds to the public comments received regarding the proposed
Final Judgment in this case. After careful consideration of the
comments, the United States continues to believe that the proposed
Final Judgment will provide an effective and appropriate remedy for the
antitrust violations alleged in the Complaint. The United States will
move the Court for entry of the proposed Final Judgment after the
public comments and this response have been published in the Federal
Register, pursuant to 15 U.S.C. 16(d).
On February 24, 2010, the United States filed the Complaint in this
matter alleging that the proposed acquisition of the Alcan Packaging
Food Americas business of Rio Tinto plc (``Rio Tinto'') by Bemis
Company, Inc. (``Bemis'') would violate Section 7 of the Clayton Act,
15 U.S.C. 18. Simultaneously with the filing of the Complaint, the
United States filed a proposed Final Judgment and a Hold Separate
Stipulation and Order (``HSSO'') signed by plaintiff and the
defendants, consenting to the entry of the proposed Final Judgment
after compliance with the requirements of the Tunney Act, 15 U.S.C. 16.
Pursuant to those requirements, the United States filed its Competitive
Impact Statement (``CIS'') in this Court, also on February 24, 2010;
published the proposed Final Judgment and CIS in the Federal Register
on March 4, 2010, see United States v. Bemis Company, Inc. et al., 75
FR 9929; and published summaries of the terms of the proposed Final
Judgment and CIS, together with directions for the submission of
written comments relating to the proposed Final Judgment, in The
Washington Post for seven days beginning on March 10, 2010 and ending
on March 16, 2010. The 60-day period for public comments ended on May
15, 2010; three comments were received as described below and attached
hereto.
I. The Investigation and Proposed Resolution
On July 5, 2009, Bemis and Rio Tinto entered into an agreement for
Bemis to acquire the Alcan Packaging Food Americas business (``Alcan'')
from Rio Tinto. For the next seven months, the United States Department
of Justice (``Department'') conducted an extensive, detailed
investigation into the likely competitive effects of the Bemis/Rio
Tinto transaction. As part of this investigation, the Department
obtained substantial documents and information from the merging parties
and issued 21 Civil Investigative Demands to third parties. In all, the
Department received and considered more than 35 boxes of hard copy
material and over 682,000 electronic documents. The Department also
conducted over 44 primary interviews and multiple follow-up interviews
with customers, competitors, and other individuals with knowledge of
the flexible-packaging industry. The investigative staff carefully
analyzed the information provided and thoroughly considered all of the
issues presented. The Department considered the potential competitive
effects of the transaction on the development, production, and sale of
flexible packaging sold in North America, and concluded that Bemis's
acquisition of Alcan likely would substantially lessen competition in
the development, production, and sale of flexible-packaging rollstock
for chunk, sliced, and shredded natural cheese packaged for retail sale
and flexible-packaging shrink bags for fresh meat in the United States
and Canada.
As explained more fully in the Complaint and CIS, the acquisition
of Alcan by Bemis would have substantially increased concentration and
lessened competition in the development, production, and sale of
flexible-packaging rollstock for chunk, sliced, and shredded natural
cheese packaged for retail sale and flexible-packaging shrink bags for
fresh meat in the United States and Canada. The acquisition effectively
would have reduced the number of suppliers of flexible-packaging
rollstock for chunk, sliced, and shredded natural cheese packaged for
retail sale from two to one, would have eliminated competition between
Bemis and Alcan with respect to those products, and would have
increased the likelihood that Bemis would unilaterally increase prices
to a significant number of customers. The acquisition also would have
reduced the number of suppliers of flexible-packaging shrink bags for
fresh meat from three to two, would have eliminated the competition
between Bemis and Alcan with respect to that product, and would have
facilitated coordination between Bemis and the remaining supplier of
shrink bags for fresh meat. The Department therefore filed its
Complaint alleging competitive harm in the development, production, and
sale of the aforementioned product markets in the United States and
Canada, and sought a remedy that would ensure that such harm is
prevented. The proposed Final Judgment requires the divestiture of
sufficient assets to prevent the increase in concentration that likely
would have resulted from the acquisition of Alcan by Bemis.
II. Summary of Public Comments and the United States's Response
During the 60-day comment period, the United States received
comments from three individuals: (1) A Concerned Menasha Citizen
(unsigned); (2) Ms. Sheri Lemmers; and (3) Mr. Stuart Springstube. The
comments, which are attached to this response, raise a single,
overarching concern: That the former Alcan plant in Menasha, Wisconsin
(the ``Menasha facility'') should not be ``split'' between Bemis and
the acquirer of the divested business, as required by the proposed
Final Judgment.
The proposed Final Judgment requires the divestiture of the Menasha
facility in order to preserve competition in the markets for flexible-
packaging rollstock for chunk, sliced, and shredded natural cheese
packaged for retail sale. However, the Menasha facility contains a
stand-alone wax-coating operation in addition to its production
facilities for flexible-packaging for natural cheese. The terms of the
proposed Final Judgment allow Bemis to move the waxcoating operation
from Menasha to another of Bemis's plants and allow Bemis access to the
Menasha facility for a limited period of time post-divestiture in order
to effectuate that transfer.
The United States has reviewed the comments submitted and has
determined that the proposed Final Judgment remains in the public
interest.
A. Summary of Public Comments
The commenters argue that the wax-coating operations should not be
removed from the Menasha facility because it will be detrimental both
to that operation and to the operations that remain in the plant. See
Concerned Comment at 2; Lemmers Comment at 1; Springstube Comment. In
addition, the commenters claim that the presence of competing companies
in the plant has, and will continue to cause, the following problems:
(1) Former co-workers are now competitors and cannot communicate freely
with each other, see Lemmers Comment at 1; Concerned Comment at I;
Springstube Comment; and (2) managers for the competing entities are
fighting over supplies and tools needed by each company to do its
work.\1\ Concerned Comment at I; Lemmers Comment at 1.
---------------------------------------------------------------------------
\1\ One commenter is also concerned about the scheduling and
leave policies that Bemis has instituted since taking over the
Menasha plant. See Lemmers Comment at 1-2. These concerns are beyond
the scope of the Department's investigation into the potential
competitive harms associated with Bemis's purchase of Alcan.
---------------------------------------------------------------------------
[[Page 33639]]
B. The United States's Response
The concerns expressed in the comments do not provide a basis to
alter the proposed Final Judgment. The Menasha plant is a key component
of the proposed divestiture package. It represents a critical base of
knowledge and expertise that is necessary for the acquirer of the
divested business to compete successfully with Bemis in the markets for
flexible-packaging rollstock for chunk, sliced, and shredded natural
cheese packaged for retail sale. However, the wax-coating operation at
the Menasha facility is unrelated to the production of flexible
packaging for natural cheese.
The Department investigated whether removing the wax-coating
operation from Menasha would adversely affect the viability of the
plant. The Department reviewed blueprints of the Menasha facility,
visited and toured the plant, interviewed plant management, reviewed
Bemis's plans for phased removal of the wax-coating operation from
Menasha, and reviewed the plant's operational and financial documents.
After careful consideration of this information, the Department
determined that, because the wax-coating operation is largely confined
to a discrete area of the plant, it could be moved by Bemis to another
facility with minimal disturbance to the overall operation of the
plant. The Department also determined that the plant would remain a
competitive and profitable business entity without the wax-coating
operation. Finally, the Department determined that the acquirer of the
divested business, as the sole owner of the Menasha facility and
Bemis's landlord, would be well-positioned to manage Bemis's exit from
the plant.\2\
---------------------------------------------------------------------------
\2\ One of the commenters also expressed a concern that Bemis
would take over the wax-coating operation only to destroy it. See
Concerned Comment at 1. This concern is not well founded. Bemis
specifically asked to retain the wax-coating operation and is moving
it at great expense. Thus, while the wax-coating operation no longer
will exist at the Menasha plant, the Department has no reason to
believe that Bemis will not continue to produce and sell wax-coated
products at its own facilities.
---------------------------------------------------------------------------
This is not to imply, however, that Bemis will be able to remove
the wax-coating operation from the Menasha facility without making any
changes to the plant or its operations. Certain accommodations, as
reflected in the language of the proposed Final Judgment, must be made
in order to preserve future competition between Bemis and the acquirer
of the divested business and limit the interaction of the two
businesses while the wax-coating operation is being removed. For
example, while the proposed Final Judgment allows Bemis to occupy the
portions of the facility utilized for the wax-coating operation, it
also requires that removal of that operation be completed within three
years of the closing of the transaction.\3\ The proposed Final Judgment
also requires that, within three months of the closing of the
transaction, Bemis create physical barriers in the Menasha facility to
separate its business activities from those of the acquirer of the
divested business while removal of the wax-coating operation is
occurring.
---------------------------------------------------------------------------
\3\ The three-year time frame was determined to be necessary in
order to allow Bemis to continue to supply wax-coated products to
customers during the transition.
---------------------------------------------------------------------------
It appears that Bemis's very compliance with the requirements of
the proposed Final Judgment have given rise to the commenters' concerns
about diminished working relationships within the Menasha plant.
However, the Department continues to believe that compliance with those
requirements is necessary to preserve current and future competition
between Bemis and the acquirer of the divested business.
III. Standard of Judicial Review
The APPA requires that proposed consent judgments in antitrust
cases brought by the United States be subject to a sixty-day comment
period, after which the court shall determine whether entry of the
proposed Final Judgment ``is in the public interest.'' 15 U.S.C.
16(e)(l). In making that determination in accordance with the statute,
the court is required to consider:
(A) the competitive impact of such judgment, including
termination of alleged violations, provisions for enforcement and
modification, duration of relief sought, anticipated effects of
alternative remedies actually considered, whether its terms are
ambiguous, and any other competitive considerations bearing upon the
adequacy of such judgment that the court deems necessary to a
determination of whether the consent judgment is in the public
interest; and
(B) the impact of entry of such judgment upon competition in the
relevant market or markets, upon the public generally and
individuals alleging specific injury from the violations set forth
in the complaint including consideration of the public benefit, if
any, to be derived from a determination of the issues at trial.
15 U.S.C. 16(e)(1)(A)-(B). In considering these statutory factors, the
court's inquiry is necessarily a limited one as the government is
entitled to ``broad discretion to settle with the defendant within the
reaches of the public interest.'' United States v. Microsoft Corp., 56
F.3d 1448, 1461 (D.C. Cir. 1995); see generally United States v. SBC
Commc'ns, Inc., 489 F. Supp. 2d 1 (D.D.C. 2007) (assessing public
interest standard under the Tunney Act); United States v. InBev N. V./
S.A., 2009-2 Trade Cas. (CCH) ] 76,736, No. 08-1965 (JR), 2009 U.S.
Dist. LEXIS 84787, at *3 (D.D.C. Aug. 11, 2009) (noting that the
court's review of a consent judgment is limited and only inquires
``into whether the government's determination that the proposed
remedies will cure the antitrust violations alleged in the complaint
was reasonable, and whether the mechanisms to enforce the Final
Judgment are clear and manageable'').
As the United States Court of Appeals for the District of Columbia
Circuit has held, under the APPA, a court considers, among other
things, the relationship between the remedy secured and the specific
allegations set forth in the government's complaint, whether the decree
is sufficiently clear, whether enforcement mechanisms are sufficient,
and whether the decree may positively harm third parties. See
Microsoft, 56 F.3d at 1458-62. With respect to the adequacy of the
relief secured by the decree, a court may not ``engage in an
unrestricted evaluation of what relief would best serve the public.''
United States v. BNS, Inc., 858 F.2d 456, 462 (9th Cir. 1988) (citing
United States v. Bechtel Corp., 648 F.2d 660, 666 (9th Cir. 1981)); see
also Microsoft, 56 F.3d at 1460-62; United States v. Alcoa, Inc., 152
F. Supp. 2d 37, 40 (D.D.C. 2001); InBev, 2009 U.S. Dist. LEXIS 84787,
at *3 Courts have held that:
[t]he balancing of competing social and political interests
affected by a proposed antitrust consent decree must be left, in the
first instance, to the discretion of the Attorney General. The
court's role in protecting the public interest is one of insuring
that the government has not breached its duty to the public in
consenting to the decree. The court is required to determine not
whether a particular decree is the one that will best serve society,
but whether the settlement is ``within the reaches of the public
interest.'' More elaborate requirements might undermine the
effectiveness of antitrust enforcement by consent decree.
Bechtel, 648 F.2d at 666 (emphasis added) (citations omitted).\4\
In determining whether a proposed settlement is in the public interest,
the
[[Page 33640]]
court ``must accord deference to the government's predictions about the
efficacy of its remedies, and may not require that the remedies
perfectly match the alleged violations.'' SBC Commc'ns, 489 F. Supp. 2d
at 17; see also Microsoft, 56 F.3d at 1461 (noting the need for courts
to be ``deferential to the government's predictions as to the effect of
the proposed remedies''); United States v. Archer-Daniels-Midland Co.,
272 F. Supp. 2d 1, 6 (D.D.C. 2003) (noting that the court should grant
due respect to the United States' prediction as to the effect of
proposed remedies, its perception of the market structure, and its
views of the nature of the case).
---------------------------------------------------------------------------
\4\ Cf. BNS, 858 F.2d at 464 (holding that the court's
``ultimate authority under the [APPA] is limited to approving or
disapproving the consent decree''); United States v. Gillette Co.,
406 F. Supp. 713, 716 (D. Mass. 1975) (noting that, in this way, the
court is constrained to ``look at the overall picture not
hypercritically, nor with a microscope, but with an artist's
reducing glass''). See generally Microsoft, 56 F.3d at 1461
(discussing whether ``the remedies [obtained in the decree are] so
inconsonant with the allegations charged as to fall outside of the
'reaches of the public interest'').
---------------------------------------------------------------------------
Courts have greater flexibility in approving proposed consent
decrees than in crafting their own decrees following a finding of
liability in a litigated matter. ``[A] proposed decree must be approved
even if it falls short of the remedy the court would impose on its own,
as long as it falls within the range of acceptability or is 'within the
reaches of public interest.'' United States v. Am. Tel. & Tel. Co., 552
F. Supp. 131, 151 (D.D.C. 1982) (citations omitted) (quoting United
States v. Gillette Co., 406 F. Supp. 713, 716 (D. Mass. 1975)), aff'd
sub nom. Maryland v. United States, 460 U.S. 1001(1983); see also
United States v. Alcan Aluminum Ltd., 605 F. Supp. 619, 622 (W.D. Ky.
1985) (approving the consent decree even though the court would have
imposed a greater remedy). Therefore, the United States ``need only
provide a factual basis for concluding that the settlements are
reasonably adequate remedies for the alleged harms.'' SBC Commc'ns, 489
F. Supp. 2d at 17.
Moreover, in its 2004 amendments to the Tunney Act,\5\ Congress
made clear its intent to preserve the practical benefits of utilizing
consent decrees in antitrust enforcement, stating ``[n]othing in this
section shall be construed to require the court to conduct an
evidentiary hearing or to require the court to permit anyone to
intervene.'' 15 U.S.C. 16(e)(2). The language wrote into the statute
what Congress intended when it enacted the Tunney Act in 1974, as
Senator Tunney explained: ``[t]he court is nowhere compelled to go to
trial or to engage in extended proceedings which might have the effect
of vitiating the benefits of prompt and less costly settlement through
the consent decree process.'' 119 Cong. Rec. 24,598 (1973) (statement
of Senator Tunney). Rather, the procedure for the public-interest
determination is left to the discretion of the court, with the
recognition that the court's ``scope of review remains sharply
proscribed by precedent and the nature of Tunney Act proceedings.'' SBC
Commc'ns, 489 F. Supp.2d at 11.\6\
---------------------------------------------------------------------------
\5\ The 2004 amendments substituted the word ``shall'' for
``may'' when directing the courts to consider the enumerated factors
and amended the list of factors to focus on competitive
considerations and address potentially ambiguous judgment terms.
Compare 15 U.S.C. 16(e) (2004), with 15 U.S.C. 16(e)(1) (2006); see
also SBC Commc'ns, 489 F. Supp. 2d at 11 (concluding that the 2004
amendments ``effected minimal changes'' to Tunney Act review).
\6\ See United States v. Enova Corp., 107 F. Supp. 2d 10, 17
(D.D.C. 2000) (noting that the ``Tunney Act expressly allows the
court to make its public interest determination on the basis of the
competitive impact statement and response to comments alone'');
United States v. Mid-Am. Dairymen, Inc., 1977-1 Trade Cas. (CCH) ]
61,508, at 71,980 (W.D. Mo. 1977) (``Absent a showing of corrupt
failure of the government to discharge its duty, the Court, in
making its public interest finding, should * * * carefully consider
the explanations of the government in the competitive impact
statement and its responses to comments in order to determine
whether those explanations are reasonable under the
circumstances.''); S. Rep. No. 93-298, 93d Cong., 1st Sess., at 6
(1973) (``Where the public interest can be meaningfully evaluated
simply on the basis of briefs and oral arguments, that is the
approach that should be utilized.'')
---------------------------------------------------------------------------
IV. Conclusion
The issues raised in the public comments were among the many
considered during the United States's extensive and thorough
investigation. Pursuant to this investigation, the United States has
determined that the Menasha facility will remain a competitive and
profitable business entity competing in the development, production,
and sale of flexible-packaging rollstock for chunk, sliced, and
shredded natural cheese packaged for retail sale. The United States
also has determined that the proposed Final Judgment as drafted
provides an effective and appropriate remedy for the antitrust
violations alleged in the Complaint, and is therefore in the public
interest. The United States will move this Court to enter the proposed
Final Judgment after the comments and this response are published in
the Federal Register.
Dated: June 7, 2010.
Respectfully submitted:
Rachel Adcox,
United States Department of Justice, Antitrust Division, Litigation
II Section, 450 5th Street, N.W., Suite 8700,
Washington, DC 20530, (202) 616-3302, rachel.adcox@usdoj.gov.
Certificate of Service
I, Rachel J. Adcox, hereby certify that on June 7, 2010, I caused a
copy of the foregoing Response of Plaintiff United States to Public
Comments on the Proposed Final Judgment to be served upon defendants
Bemis Company, Inc., Rio Tinto plc, and Alcan Corporation by mailing
the documents electronically to the duly authorized legal
representatives of defendants as follows:
Counsel for Defendant Bemis Company, Inc.:
Stephen M. Axinn, Esq., John D. Harkrider, Esq., Axinn, Veltrop &
Harkrider LLP, 114 West 47th Street, New York, NY 10036, (212) 728-
2200, sma@avhlaw.com, jdh@avhlaw.com.
Counsel for Defendants Rio Tinto plc and Aican Corporation:
Steven L. Holley, Esq., Bradley P. Smith, Esq., Sullivan & Cromwell
LLP, 125 Broad Street, New York, NY 10004, (212) 558-4737,
holleys@sullcrom.com, smithbr@sullcrom.com.
I further certify that on June 7, 2010, I caused a copy of the
foregoing to be delivered electronically and via U.S. mail, postage
prepaid, to the following person:
Mr. Stuart Springstube, N6960 County Rd-A, Weyauwega, WI 54983,
Sspringstube@mwwb.net.
Rachel J. Adcox, Esq.,
United States Department of Justice, Antitrust Division, Litigation
II Section, 450 Fifth Street, N.W., Suite 8700, Washington, D.C.
20530, (202) 616-3302.
March 27, 2010
Maribeth Petrizzi,
Chief Litigation II Section.
Antitrust Division, U.S. Department of Justice, 450 Fifth Street,
N.W., Suite 8700, Washington, D.C. 20530.
To: Maribeth Petrizzi
RE: Bemis/Alcan Acquisition
The proposal that the DOJ has allowed with the Bemis/Alcan
acquisition is and will continue to be detrimental to the community
of Menasha. It will also have an impact on the cheese industry. The
turmoil that is running through the Menasha Plant is devastating the
business. Bemis has walked in the doors and caused great chaos in
the plant. The people chosen to go with Bemis are all unsure of
their future and worry about what plans are for the future of the
wax business. At the present time those employees feel Bemis will
destroy the business in due time. Remedy Company is also unsure of
their future. Bemis is doing everything in their power to take
business that does not involve the cheese business and they are out
to destroy what is left of Remedy Company. Remedy Company is taking
a stance that everything in the mill is theirs and that they will
need it to continue business. On the other hand Bemis is being left
with nothing. Simply trying to start up offices has become mission
impossible. They will not provide essential items such as office
furniture and computers. The hourly machine workers in this plant
have created relationships over long periods of time in this
[[Page 33641]]
facility and they are being asked not to talk to an old friend.
Living in America gives us the right to freedom of speech, but Bemis
and the DOJ is trying to take that away. Give the people of the
plant some dignity and sympathy, you are destroying a successful
plant that through the years has brought business into the community
of Menasha, and to the local cheese manufactures of the surrounding
area.
The City of Menasha spent millions of dollars five years ago to
bring more and new equipment into the Menasha facility. The city
funded part of the expense to reroute the city street to make
Menasha Plant a growth of opportunity. The community of Menasha
found this to be a great addition to their city. It brought jobs to
the area, revenue to local businesses, and a sense of pride back to
their community. Bemis and the DOJ has taken all of that away. It
was not only in the best interest of the employees at Alcan but it
was in the best interest of Menasha to keep this plant going.
I hope that the DOJ takes a closer look at the destruction that
Bemis has caused. Look at what this will do to the surrounding area
and how it will affect the City of Menasha. This acquisition did not
have to take place as it did. Bemis could have chosen to leave
Menasha Plant alone and let them strive to be a small but
competitive business. Leave the employees in tack and let the
business make or break on its own. Bemis has toured the plant and
taken everything they desired from it, they have taken knowledgeable
people and trades and will survive. Now it seems as though their
final goal is too bury Remedy Company and soon after the wax
business will come to an end.
Sincerely,
A Concerned Menasha Citizen
March 26, 2010
Maribeth Petrizzi
Chief Litigation II Section
Antitrust Division
U.S. Department of Justice
450 Fifth Street, N.W.,
Suite 8700
Washington, D.C. 20530
Dear Maribeth Petrizzi,
I am writing in concern of the Bemis/Alcan acquisition, and
currently work within the Menasha Plant where complete chaos takes
place on a daily basis. It was the employees understanding that this
transition is not to interrupt the work on either side of the sale.
Unfortunately everyday is a battle zone, management is very cut
throat on daily work supplies and tools that are needed by each side
to conduct business as usual. There are supervisors and managers
hoarding things just so others can not use them. There is bitterness
throughout the plant and unrespectable and unprofessional talk among
everyone. This plant has been very successful over the years and
that is due to the loyalty and companionship that coworkers have
with each other. Since Bemis has taken over this building it has
mined long time friendships and reputations of mangers and
supervisors that were once respected. We have a Plant Manager and an
Operations Manager on opposite sides of the fence now and it leads
to baffles on a daily basis.
Employees have lost a lot since this purchase was allowed,
customers are disappointed that Bemis has the advantage, and the
community of Menasha, Wisconsin is losing a great plant that brings
money into their community.
I am disappointed in the decision that the Department of Justice
came to. This plant should not be divided and can only survive as
one. Relocating departments from this mill is detrimental to the
success of the remaining Menasha Plant. Bemis seems to be doing
everything in their power to make sure that Menasha no longer will
exist. Back in November of 2009 Bemis came in and met with potential
employees and said that we were very valuable employees to them,
that they cared about us. I would like to know when the caring comes
into play. They are currently forcing some of the people that they
have chosen to stay with them to work 12 hours a day seven days a
week. They also do not allow for personal days during this time nor
will they excuse any doctor's appointments that you may have
scheduled. Many of these employees do not have regular scheduled
shifts and it is very difficult to schedule appointments, as you
well know some doctors require you to schedule appointments anywhere
from three to six months in advance. Bemis claims they care about
your health and want you to be healthy but yet I can not be a half
hour late for work or I will disciplined with an occasion. Five
occasions are allowed within a year's timeframe and it takes you a
year from the date of a call in to get that occasion back. Life
today is busy and fast paced, people need to live life and enjoy it.
Yet I can not understand how I am to enjoy my life working seven
days a week twelve hours a day and expect to function normally.
Granted this system is not suppose to remain for long, but who has
given them a timeline for how long they can abuse employees. We are
humans, not animals! It is offensive to work for such an employer
that cares nothing about life and family.
I am in hopes that this hostile takeover ends in peace and that
the DOJ reconsiders their proposal. This plant has always been a
success story for the company and community and now it has turned
into a bloody battle field. I believe that it is in the best
interest of everyone including the DOJ to reconsider the ruling that
was made. How would you like to walk into a war zone everyday
wondering who is going to belittle you and who was going to be
respectable to you? It's a question that employees should not even
have to think about.
Sincerely,
Sheri Lemmers
March 27, 2010
Maribeth Petrizzi
U.S. Department of Justice,
450 Fifth Street, N.W., Suite 8700,
Washington, D.C. 20530.
Dear Friend,
This letter is in regards' to your decision in the Bemis
acquisition of Alcan. I am a employee of the Alcan plant in Menasha
and the decision to split our plant into two separate plants is a
death sentence for many of us maybe all of us. Our plant was an
example of how an America plant can be successful. Put now we are
being forced to be split the plant and compete against our self.
Bemis should have been allowed to have the whole plant or non of it.
I am not great at writing letters if you would give me ten minutes
of your time I could explain this better. PLEASE call me. I strongly
encourage you to change your decision, I need this job not an
unemployment check. Let Bemis have the Menasha plant.
Sincerely,
Stuart S. Springstube
[FR Doc. 2010-14121 Filed 6-11-10; 8:45 am]
BILLING CODE 4410-11-M