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US v 21ST CENTURY BIDDING CORP Click to find out why . . .



Keywords & Phrases
CaseNo: UVSCBC148977, CourtName: US DEPARTMENT OF JUSTICE, Plaintiff: US, State: DC Washington D.C., UniqueCaseRef: LCD>UVSCBC148977, Licenses, Bid, Auction, Judgement, United States, Bidding, Bidders, Codes, Antitrust, Fcc, Competitive Impact, Entry, Rivals, Purpose, Complaint, Competitive Impact Statement, Bta, Def Auction, Pcs, Agreement, Indianapolis-f License, Compliance, Baton Rouge, Proceeding, Appa, Round, Communicate, Officer, Radio Spectrum, Provisions, License, District, High Bidder, Employees, Broadband, Complaint Alleges, Sherman Act, Competing, Restrain, Mercury, Violations, Communications Services, Biloxi , ContentID: 120245931

Case Documents
1   COMPETITIVE IMPACT STATEMENT
[ see first page and extracted highlights below  ] ItemID: 112764
15 pages
PDF
2 2000-05 MOTION FOR ENTRY OF FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 112767
5 pages
PDF
3 1998-11-10 US COMPLIANCE WITH ANTITRUST PROCEDURES AND PENALTIES ACT
[ see first page and extracted highlights below  ] ItemID: 112768
3 pages
PDF
4 1998-11-10 FINAL JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 112766
8 pages
PDF
5 1996-08 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 112765
8 pages
PDF
Total Documents: 5 documents , 39 pages
Price: $ 39.95


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1 . COMPETITIVE IMPACT STATEMENT

EXTRACTED KEY WORDS
BID
AUCTION
JUDGEMENT
BIDDING
UNITED STATES
BIDDERS
COURT
CODES
ANTITRUST
COMPETITIVE IMPACT
RIVALS
FCC
ENTRY
PURPOSE
COMPLAINT
DEF AUCTION
INDIANAPOLIS-F LICENSE
COMPETITIVE IMPACT STATEMENT
BTA
PROCEEDING
COMMUNICATE
AGREEMENT
BATON ROUGE
RADIO SPECTRUM
PCS
APPA
HIGH BIDDER
BROADBAND
COMPLAINT ALLEGES
                           IN THE UNITED STATES DISTRICT COURT
                               FOR THE DISTRICT OF COLUMBIA
  UNITED STATES OF AMERICA,  )
                                              )
                      Plaintiff,              )             CIVIL ACTION NO. 1:98CV02752
                                              )
   v.                                         )
                                              )
21st CENTURY BIDDING CORP.,                   )
                                              )
   Defendant.                                 )
____________________________________)

                             COMPETITIVE IMPACT STATEMENT

       The United States of America, pursuant to Section 2(b) of the Antitrust Procedures and

Penalties Act ("APPA"), 15 U.S.C. § 16(b)-(h), files this Competitive Impact Statement relating

to the proposed Final Judgment submitted for entry in this civil antitrust proceeding.



                     I.  NATURE AND PURPOSE OF THIS PROCEEDING

       On November 10, 1998, the United States filed a civil antitrust complaint alleging that the

defendant, 21st Century Bidding Corp. ("21st Century"), had violated Section 1 of the Sherman

Act, 15 U.S.C. § 1.  21st Century participated in an auction (the "DEF auction") of broadband

radio spectrum licenses for personal communication services ("PCS") that was conducted by the

Federal Communications Commission ("FCC") between August 1996 and January 1997.  The

Complaint alleges that during the DEF auction 21st Century submitted bids that ended with

three-digit numerical codes to communicate with rival bidders and that, through the use of these

coded bids, 21st Century and one of its rivals reached an agreement to refrain from bidding

against one another.  As a consequence of this agreement, the complaint alleges 21st Century and



its competitor paid less for certain PCS licenses, resulting in a loss of revenue to the Treasury of

the United States.

SNIPPETS:
  • IN THE UNITED STATES DISTRICT COURT
  • Penalties Act, 15 U.S.C. § 16-, files this Competitive Impact Statement relating
  • to the proposed Final Judgment submitted for entry in this civil antitrust proceeding.
  • NATURE AND PURPOSE OF THIS PROCEEDING
  • On November 10, 1998, the United States filed a civil antitrust complaint alleging that the
  • defendant, 21st Century Bidding Corp., had violated Section 1 of the Sherman
  • 21st Century participated in an auction (the "DEF auction") of broadband
  • radio spectrum licenses for personal communication services that was conducted by the
  • Complaint alleges that during the DEF auction 21st Century submitted bids that ended with
  • three-digit numerical codes to communicate with rival bidders and that,
  • 21st Century and one of its rivals reached an agreement to refrain from bidding
  • related to bidding for FCC licenses that violates Section 1 of the Sherman Act,
  • be entered after compliance with the APPA.
  • Background of the PCS Auctions
  • The FCC designated six bands of broadband radio spectrum for PCS: A, B, C, D, E and F.
  • Each BTA was assigned a number from 1 to 493.
  • ended only when a round passed in which no bidder submitted a bid on any license.
  • Bidders also had to be "active" in each round (bid or have the high bid
  • The bidders also speculated about their rivals' business strategies and attempted to
  • standing high bidder to refrain from bidding against it for a different license.
  • the Baton Rouge and Biloxi-F licenses in exchange for Mercury's agreement not to bid for the
  • 21st Century had been bidding for the Indianapolis-F license and had

  • 2 . MOTION FOR ENTRY OF FINAL JUDGMENT

    EXTRACTED KEY WORDS
    COURT
    UNITED STATES
    ENTRY
    COMPETITIVE IMPACT
    APPA
    COMPLAINT
    VIOLATIONS
    DEFENDANT
    ANTITRUST
    PLAINTIFF
    COMPETITIVE IMPACT STATEMENT
    CERTIFICATE
    ACT
    COMPLIANCE
    PROVISIONS
    MOTION
    ALLEGES
    CODED BIDS
    DETERMINATION
    CONSIDERATIONS
    ANTITRUST PROCEDURES
    BIDDING
    FUTURE FCC AUCTIONS
    ENTERING
    ANTICOMPETITIVE AGREEMENTS
    TERMINATE
    COMMUNICATIONS
    REMEDIES
    ENFORCE
    
                               IN THE UNITED STATES DISTRICT COURT
                                  FOR THE DISTRICT OF COLUMBIA
     ____________________________________
                                                   )
    UNITED STATES OF AMERICA,                      )
                                                   )
                          Plaintiff,               )             CIVIL ACTION NO. 98-2752(PLF)
                                                                                          )
       v.                                          )             PLAINTIFF'S MOTION FOR
                                                   )             ENTRY OF THE FINAL
    21st CENTURY BIDDING CORP.                     ) JUDGEMENT
                                                   )
       Defendant.                                  )
    ____________________________________)
    
           Pursuant to Section 2(b) of the Antitrust Procedures and Penalties Act ("APPA"), 15
    
    U.S.C. § 16 (b)-(h), plaintiff United States moves for entry of the proposed Final Judgment
    
    annexed hereto in this civil antitrust proceeding.  The Final Judgment may be entered at this time
    
    without further hearing if the Court determines that entry is in the public interest.  The
    
    Competitive Impact Statement filed in this matter on November 10, 1998, explains why entry of
    
    the proposed Final Judgment would be in the public interest.  A Certificate of Compliance setting
    
    forth the steps taken by the parties to comply with all applicable provisions of the APPA and
    
    certifying that the statutory waiting period has expired has been filed simultaneously with this
    
    Motion.
    
    
    
     I.
    
     Background
    
          Plaintiff filed a civil antitrust complaint on November 10, 1998, alleging that 21st Century
    
    Bidding Corporation ("21st Century) violated Section 1 of the Sherman Act, 15 U.S.C. § 1.  In its
    
    complaint, the plaintiff alleged that the defendant used coded bids during a Federal
    
    Communications Commission auction of radio spectrum licenses for personal communication
    
    services.  The complaint further alleges that, through the use of these coded bids, the defendant
    
    
    SNIPPETS:
  • IN THE UNITED STATES DISTRICT COURT
  • Pursuant to Section 2of the Antitrust Procedures and Penalties Act,
  • plaintiff United States moves for entry of the proposed Final Judgment
  • Plaintiff filed a civil antitrust complaint on November 10, 1998, alleging that 21st Century
  • Bidding Corporation violated Section 1 of the Sherman Act,
  • Communications Commission auction of radio spectrum licenses for personal communication
  • The complaint further alleges that, through the use of these coded bids, the defendant
  • from entering into anticompetitive agreements and from using coded bids in future FCC
  • A Competitive Impact Statement filed by the United States describes the Complaint,
  • and the remedies available to private litigants who may have been
  • entered after compliance with the APPA.
  • Entry of the proposed Final Judgment would terminate
  • this action, except that the Court would retain jurisdiction to construe, modify, or enforce
  • provisions of the proposed Final Judgment and to punish violations thereof.
  • The Certificate of Compliance filed by the United States with this
  • Court simultaneously with this Motion demonstrates that all the requirements of the APPA have
  • It is now appropriate for the Court to make the public interest determination required
  • considerations bearing upon the adequacy of such judgment;

  • 3 . US COMPLIANCE WITH ANTITRUST PROCEDURES AND PENALTIES ACT

    EXTRACTED KEY WORDS
    UNITED STATES
    COMPETITIVE IMPACT STATEMENT
    COURT
    COMPETITIVE IMPACT
    PURSUANT
    DEFENDANT
    REQUESTING
    DISTRICT
    AMERICA
    COMPLIANCE
    PROVISIONS
    ANTITRUST PROCEDURES
    PENALTIES ACT
    PLAINTIFF
    COMMUNICATIONS
    CIRCULATION
    COLUMBIA
    COMMUNICATIONS DESCRIBING COMMUNICATIONS
    DEFENDANT RELATING
    OFFICERS
    EMPLOYEES
    SUBMISSION
    MEMBERS
    STIPULATION
    JUDGMENT SERVES
    STANDARD
    HEARINGS
    COUNSEL
    DEFENDANT JOINS
    
                                IN THE UNITED STATES DISTRICT COURT
                                    FOR THE DISTRICT OF COLUMBIA
      UNITED STATES OF AMERICA,  )
                                                    )
                           Plaintiff,               )              CIVIL ACTION NO. 98-2752(PLF)
                                                    )                PLAINTIFF'S MOTION FOR
                                                    )              ENTRY OF THE FINAL
                                                    )               JUDGEMENT
       v.                                           )
                                                    )
    21st CENTURY BIDDING CORP.,                     )
                                                    )
       Defendant.                                   )
    ____________________________________)
                                  UNITED STATES' CERTIFICATE OF
                         COMPLIANCE WITH THE PROVISIONS OF THE
                        ANTITRUST PROCEDURES AND PENALTIES ACT
    
    
           Plaintiff, United States of America, hereby certifies that it has complied with the
    
    the Antitrust Procedures and Penalties Act, 15 U.S.C. § 16(b)-(h), and states:
    
    
    
           1.      The proposed Final Judgment and Competitive Impact Statement were filed with the
    
    Court on November 10, 1998.
    
    
    
           2.      Pursuant to 15 U.S.C. § 16(b), the Proposed Final Judgment and Competitive Impact
    
    Statement were published in the Federal Register on November 25, 1998 (63 Fed. Reg. 227).
    
           3.      Pursuant to 15 U.S.C. § 16(b), the United States furnished to requesting parties
    
    of the Competitive Impact Statement, as well as copies of the Complaint and the proposed Final
    
    Judgment.
    
    
    
    
    
          4.       Pursuant to 15 U.S.C. § 16(c), a summary of the terms of the proposed Final Judgment
    
    and Competitive Impact Statement were published in the Washington Post, a newspaper of general
    
    
    SNIPPETS:
  • IN THE UNITED STATES DISTRICT COURT
  • UNITED STATES OF AMERICA,)
  • COMPLIANCE WITH THE PROVISIONS OF THE
  • the Antitrust Procedures and Penalties Act, 15 U.S.C. § 16-, and states:
  • Pursuant to 15 U.S.C. § 16, the Proposed Final Judgment and Competitive Impact
  • Pursuant to 15 U.S.C. § 16, the United States furnished to requesting parties copies
  • of the Competitive Impact Statement, as well as copies of the Complaint and the proposed Final
  • circulation in the District of Columbia, during the period November 19, 1998 through November
  • Communications describing communications by or on behalf of the defendant relating to the
  • proposed Final Judgment with officers or employees of the United States.
  • The 60-day period provided by 15 U.S.C. § 16for the submission of public
  • The United States received no comments from members of the public concerning the
  • Pursuant to the Stipulation and Order filed on November 10, 1998, and 15 U.S.C.
  • the Court may enter the Final Judgment after it determines that the Judgment serves the
  • Judgment satisfies the public interest standard of 15 U.S.C. § 16.
  • Plaintiff requests that this Court enter the Final Judgment without further hearings
  • and is authorized by counsel for the defendant to state that the defendant joins in this

  • 4 . FINAL JUDGMENT

    EXTRACTED KEY WORDS
    DEFENDANT
    OFFICER
    COMPLIANCE
    PLAINTIFF
    LICENSE
    ENTRY
    FCC
    DISTRICT
    ANTITRUST
    UNITED STATES
    COURT
    PARTY
    EMPLOYEES
    LAW
    PRICE
    AUCTION
    PURPOSE
    CERTIFICATION
    REQUEST
    PROVISIONS
    DESIGNATING
    RESPONSIBILITY
    OBTAINING
    PROCEEDING
    CONSENT
    PARTIES
    JURISDICTION
    SUCCESSORS
    DIRECTORS
    
                           IN THE UNITED STATES DISTRICT COURT
                                FOR THE DISTRICT OF COLUMBIA
    
         UNITED STATES OF AMERICA,                                  )
                                                                    )
                                                        Plaintiff,  )
                                                                    )
    
                                   v.                               )  Case No. 1:98CV02752
    
                                                                    )
         21st CENTURY BIDDING CORP.,                                )
                                                                    )
                                                      Defendant.  )
    
    
                                            FINAL JUDGMENT
    
    
              Plaintiff, United States of America, filed its Complaint on November 10, 1998.
    
    Plaintiff and the Defendant, by their respective attorneys, have consented to the entry of this
    
    Final Judgment without trial or adjudication of any issue of fact or law.  This Final
    
    Judgment shall not be evidence against or an admission by any party with respect to any
    
    issue of fact or law.  Therefore, before the taking of any testimony, without trial or
    
    adjudication of any issue of fact or law herein, and upon consent of the parties, it is hereby
    
    ORDERED, ADJUDGED, AND DECREED, as follows:
    
    
    
     I.
    
     Jurisdiction
    
              This Court has jurisdiction of the subject matter of this action and of each of the
    
    parties consenting hereto.  Venue is proper in the District of Columbia.  The Complaint
    
    states a claim upon which relief may be granted against the Defendant under Section 1 of
    
    the Sherman Act, 15 U.S.C. § 1.
    
    
    
    
    SNIPPETS:
  • IN THE UNITED STATES DISTRICT COURT
  • Plaintiff, United States of America, filed its Complaint on November 10, 1998.
  • Plaintiff and the Defendant, by their respective attorneys, have consented to the entry of
  • Final Judgment without trial or adjudication of any issue of fact or law.
  • adjudication of any issue of fact or law herein, and upon consent of the parties, it is hereby
  • This Court has jurisdiction of the subject matter of this action and of each of the
  • parties consenting hereto.
  • "Defendant" means 21st Century Bidding Corporation, its successors,
  • assigns, subsidiaries, divisions, groups, affiliates, partnerships and joint ventures,
  • officers, managers, agents, and employees.
  • "FCC" means the Federal Communications Commission.
  • description that designates or identifies a license or that links licenses.
  • Judgment is or has been created for the benefit of any third party and nothing herein shall
  • In the course of any auction conducted pursuant to the rules and
  • regulations of the FCC, offering any price to the FCC for the lease, purchase, or right to
  • The Defendant is ordered to maintain an antitrust compliance program,
  • Designating, within 30 days of entry of this Final Judgment, an Antitrust
  • Compliance Officer with responsibility for accomplishing the antitrust compliance
  • program and with the purpose of achieving compliance with this Final Judgment.
  • Antitrust Compliance Officer shall, on a continuing basis, supervise the review of the
  • Obtaining from each present or future officer,
  • of the person's succession to a designated position, a written certification that he
  • other purpose, duly authorized representatives of the Plaintiff shall, upon written request
  • Defendant prior to divulging such material in any legal proceeding (other than a grand
  • or terminate any of its provisions, to enforce compliance, and to punish violations of its

  • 5 . COMPLAINT

    EXTRACTED KEY WORDS
    AUCTION
    BID
    FCC
    PCS
    ROUND
    BIDDING
    BIDDERS
    AGREEMENT
    BTA
    CODES
    UNITED STATES
    SHERMAN ACT
    DEF AUCTION
    COMPETING
    RESTRAIN
    MERCURY
    COMMUNICATIONS SERVICES
    BILOXI
    SPECTRUM
    VIOLATION
    TELESIS
    STANDING HIGH
    WITHDRAWAL PERIOD
    INDIANAPOLIS-F LICENSE
    BATON ROUGE
    ALLOCATE
    BID SUBMISSION
    PURPOSE
    INTERSTATE COMMERCE
    
                                           IN THE UNITED STATES DISTRICT COURT
                                                 FOR THE DISTRICT OF COLUMBIA
      UNITED STATES OF AMERICA,  )
      Department of Justice                                               )
      Antitrust Division                                                  )
      325 7th Street, N.W., Suite 500                                     )
      Washington, D.C.  20530,                                            )
                                                                          )
                                     Plaintiff,                           )           CIVIL ACTION NO.
                                     )
       v.                                                                 )
                                                                          )
    21st CENTURY BIDDING CORP.,                                           )
      4665 MacArthur Court                                                )
      Newport Beach, CA  92660,                                           )
                                                                          )
       Defendant.                                                         )
                                                                           )
    
    
    
     COMPLAINT
    
             The United States of America, through its attorneys, acting under the direction of the
    
    Attorney General of the United States, brings this civil antitrust action under Section 1 of the
    
    Sherman Act, to obtain equitable and other relief against 21st Century Bidding Corp.
    
    
    
                                                      I.  NATURE OF THIS ACTION
    
             1.          In August 1996, the Federal Communications Commission ("FCC") commenced an
    
    auction (the "DEF auction") to award licenses of broadband radio spectrum to be used for the
    
    development and operation of personal communications services ("PCS").  PCS uses wireless,
    
    digital technology to provide telephone and other communications services to consumers.
    
             2.          Defendant 21st Century Bidding Corp. ("21st Century") was among the successful
    
    bidders in the DEF auction.  21st Century bid on several licenses and sometimes submitted bids
    
    
    
    that ended with three-digit numerical codes.  21st Century used the coded bids to communicate
    
    
    SNIPPETS:
  • The United States of America, through its attorneys, acting under the direction of the
  • Sherman Act, to obtain equitable and other relief against 21st Century Bidding Corp.
  • auction (the "DEF auction") to award licenses of broadband radio spectrum to be used for the
  • PCS uses wireless,
  • digital technology to provide telephone and other communications services to consumers.
  • with rival bidders during the auction.
  • By using the codes,
  • two or more specific markets and thereby proposed to competing bidders that they not bid
  • violation of Section 1 of the Sherman Act,
  • As a consequence of this agreement,
  • to prevent and restrain violations by 21st Century of Section 1 of the Sherman Act,
  • Telesis Joint Venture, which is a Delaware general partnership with headquarters in
  • United States pursuant to licenses granted by the FCC.
  • Century and its controlling entities are engaged in interstate commerce and their activities
  • for the use of radio spectrum.
  • Each BTA was assigned a number between 1
  • participants can observe all of the bidding activity in each round.
  • After each bid submission period, the FCC published electronically to all bidders
  • received earliest by the FCC during that round was the standing high bid.
  • published the results of the withdrawal period.
  • markets, highlight the licenses 21st Century wanted, and convey offers to allocate the
  • 21st Century's use of the BTA end codes did not serve any legitimate purpose of the auction.
  • agreed to stop bidding for the Baton Rouge and Biloxi-F licenses in exchange for Mercury's
  • agreement to stop bidding for the Indianapolis-F license.
  • license and had not bid for any licenses in Baton Rouge or Biloxi;
  • Mercury saw the BTA end codes and understood that 21st Century proposed
  • Mercury and to suppress the prices for PCS licenses by eliminating competing bids.
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