-Caveat Lector-

http://tompaine.com/feature.cfm?ID=5010

The Angry Commissioner
Statement Of FTC Commissioner Mozelle W. Thompson

Mozelle W. Thompson was sworn in as a Commissioner on the Federal Trade
Commission in 1997. A life-long public servant and teacher, he has held
positions at the Treasury Department, the International Marketing Supervision
Network, the Organization for Economic Cooperation and Development, the New
York State Finance Agency, Fordam's School of Law, and Princeton's Woodrow
Wilson School of Public and International Affairs.

Editor's Note: What follows is a statement from FTC Commissioner Mozelle W.
Thompson concerning the January 17, 2002 Memorandum of Agreement Between The
Federal Trade Commission and the Antitrust Division of the United States
Department of Justice Concerning Clearance Procedures for Investigations.




At a press conference today, Chairman [Timothy] Muris announced an Agreement
that redefines how the Federal Trade Commission and the Antitrust Division of
the Department of Justice will allocate the review of future antitrust
matters. Under the claim that the Agreement will streamline the federal
government's review of antitrust matters, the Agreement reallocates by
industry the agencies' antitrust review responsibilities. While generally I
favor interagency agreements that enhance the speed and efficiency of case
processing, today's announced Agreement raises substantial concerns.

First, redefining the Commission's future antitrust responsibility raises
weighty issues that warrant close attention from each Commissioner in order
to ensure that the public interest is adequately protected. Rather than
simply codifying or clarifying the existing merger review responsibilities,
the Agreement alters which agency will have primary responsibility for
investigating both mergers and other anticompetitive practices in certain
industries. I believe that the changes embodied in the Agreement exceed
merely administrative responsibilities and go to the core of the agency's
mission. Such an important change demands careful consideration by each of
the five Commissioners.

The Agreement announced today is the product of private discussions between
Chairman Muris and Assistant Attorney General James. Chairman Muris failed to
consult with, or provide meaningful opportunity for, other Commissioners to
provide any input. In fact, I was not even provided with a copy of the
completed Agreement until immediately before Chairman Muris executed the
Agreement on behalf of the Commission. This lack of transparency makes it
difficult for the other four Commissioners to discharge their obligation to
determine whether consumers will actually benefit from such a significant
change at this agency.


I am disappointed that the Commissioners were not invited to participate in
this public policy decision that so profoundly shapes the future of the
Commission.
Second, I am also concerned about the substance of this private "horse
trading" because it may deprive consumers of the benefit of the Commission's
independence, expertise, and knowledge. The Commission is an independent,
nonpartisan body made up of five presidential appointees with varied
expertise and professional experiences. I believe these perspectives have led
to significant, positive agency actions in dynamic "new economy" industries
that presented novel antitrust issues. But Chairman Muris's Agreement would
transfer the Commission's jurisdiction in publishing, media, entertainment,
computer software, and Internet-related industries to the Department of
Justice, thereby consolidating responsibility for the review of all matters
relating to media content in the Department of Justice. This transfer will
deprive the public of the benefit of the Commission's recent experience in
matters such as:

AOL/Time Warner In the Matter of America Online, Inc. and Time Warner Inc.,
Docket No. C-3989 (Consent accepted December 14, 2000) (broadband),
Random House In the Matters of Harper & Row et al., Docket Nos. 9217-9222
(Order dismissing administrative complaints September 20, 1996) (book
publishing),
MSC.Software In the Matter of MSC.Software Corporation, Docket No. 9299
(Administrative complaint filed October 10, 2001) (computer-aided engineering
software),
Hearst FTC v. The Hearst Trust et al., Civ. No. 1:01CV00734 (D.D.C. 2001)
(pharmaceutical databases),
Sony In the Matters of Sony Music Entertainment, Inc. et al., Docket Nos.
C-3971-3975 (Consents accepted May 10, 2000) (compact disc cooperative
pricing policies), and
Time Warner/EMI Time Warner's proposed acquisition of EMI in 2000 (Abandoned
during the Commission's investigation) (pre-recorded music).
Because Chairman Muris failed to apprise his fellow Commissioners of the
existence of his discussions, negotiations, and industry allocations until
three days ago, I have not fully appraised the impact of the shifts on the
Commission's de facto jurisdiction.
Moreover, the public will also lose the full potential of synergies arising
from other ongoing related Commission activities that encompass: law
enforcement investigations in Internet fraud cases; Internet privacy policy
workshops and studies; advertising enforcement activity in the media space;
and public workshops in cutting-edge areas (such as the June, 2000
Business-to-Business Electronic Marketplaces Workshop).

In summary, I am disappointed that the Commissioners were not invited to
participate in this public policy decision that so profoundly shapes the
future of the Commission. The lack of transparency in the negotiation and
summary execution of matters as important as those covered in the Agreement
may have compromised my responsibility to the public to give thorough and
careful consideration to matters that will have an important impact on all
consumers. However, my greater fear is that it may have compromised
opportunities for independent consideration of important antitrust matters
and how America will grow.


Published: Jan 18 2002

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