[Federal Register: August 2, 2006 (Volume 71, Number 148)]
[Notices]
[Page 43812-43813]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02au06-109]
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DEPARTMENT OF JUSTICE
Antitrust Division
Proposed Termination of Judgments
Notice is hereby given that Defendant American Watch Association,
Inc. (``AWA'') and Defendant Foote, Cone & Belding, Inc. (``Foote'')
have filed a joint motion to terminate both the Final Judgment entered
against the AWA (``the AWA Final Judgment'') and the Final Judgment
entered against Foote (``the Foote Final Judgment'') on March 9, 1960
in United States v. The Watchmakers of Switzerland Information Center,
Inc., Trade Reg. Rep. (CCH) ]69,655 (S.D.N.Y. Mar 9, 1960)
(collectively ``the AWA and Foote Final Judgments'') and that the
Department of Justice (``the Department''), Antitrust Division, in a
stipulation also filed with the Court, has tentatively consented to
termination of the AWA and Foote Final Judgments, but has reserved the
right to withdraw its consent pending receipt of public comments.
The AWA and Foote Final Judgments, similar to the Final Judgment
entered in United States v. The Watchmakers of Switzerland Information
Center, Inc., Trade Reg. Rep. (CCH) ]69,655 (S.D.N.Y. Mar. 9, 1960)
(``the Watchmakers Final Judgment''), arose out of a 1950s
investigation of the anticompetitive practices of the Swiss watch
industry, including Swiss watch manufacturers, Swiss trade
associations, and their United States importers. The United States
filed a complaint against more than 20 watch companies and associations
in 1954, including the AWA and Foote. United States v. The Watchmakers
of Switzerland Information Center, Inc., Civil Action No. 96-170
(S.D.N.Y. Complaint filed Oct. 19, 1954). The AWA is an association
that promotes the growth and health of the U.S. watch industry and
lobbies to influence regulatory policy. Its members include U.S. watch
companies as well as U.S. subsidiaries of foreign watch manufacturers.
Foote is an advertising agency that allegedly acted as an agent for
some of the defendants.
The United States made serveral allegations in its complaint. It
charged that certain Swiss and U.S.
[[Page 43813]]
manufacturers and sellers of Swiss watches and watch parts engaged in a
conspiracy ``to restrict, eliminate and discourage the manufacture of
watches and watch parts in the United States, and to restrain United
States imports and exports of watches and watch parts for manufacturing
and repair purposes.'' Id. The United States also charged that these
companies agreed to fix minimum prices for watches and maximum prices
for repair parts, regulate the use and distribution of watches and
repair parts, boycott those who violated these restrictions. Id. The
conspiracy came about through the adoption and enforcement of an
agreement known as the Collective Convention of the Swiss Watch
Industry. ``The purpose of the Collective Convention was to protect,
develop and stablize the Swiss watch industry and to impede the growth
and competitive watch industries outside of Switzerland.'' United
States v. The Watchmakers of Switzerland Information Center, Inc.,
1963-1 Trade Cas. (CCH) ]70,600, at 77,426 (S.D.N.Y. Dec. 20, 1962).
The AWA was named as a defendant because, as a trade association
whose members included most of the defendant manufacturers and
importers, there was concern that the AWA could aid the alleged
conspiracy by policing members' conduct and influencing members to
participate in the cartel.
Foote was named as a defendant in the Complaint, becuase as an
advertising agency and an agent for some of the defendants, there was
concern that Foote, similar to the AWA, was policing the alleged
conspiracy and thus aiding the defendants in the enforcement of the
cartel.
On March 9, 1960, prior to trial, the United States and the
defendant importers (not the AWA since it is a trade association, nor
Foote since it is an advertising agency) named in the complaint agreed
to enter into the Watchmakers Final Judgment in lieu of going to trial.
United States v. The Watchmakers of Switzerland Information Center,
Inc., Trade Reg. Rep. (CCH) ]69,655 (S.D.N.Y. Mar. 9, 1960). Also on
March 9, 1960, the United States and Defendants AWA and Foote agreed to
enter into the AWA Final Judgment and the Foote Final Judgment,
respectively, in lieu of going to trial. Id. Most of the restrictions
in the AWA and Foote Final Judgments prohibit conduct that each
company, respectively, could have taken to facilitate the conspiracy.
The Department has filed with the Court a memorandum setting forth
the reasons why the United States believes that termination of the AWA
and Foote Final Judgments would serve the public interest. Copies of
the AWA's and Foote's joint motion to terminate, the stipulation
containing the United States' tentative consent, the United States'
memorandum, and all further papers filed with the Court in connection
with the AWA's and Foote's joint motion will be available for
inspection at the Antitrust Documents Group, Antitrust Division, Room
215, 325 7th Street, NW., Washington, DC 20004, and at the Office of
the Clerk of the United States District Court for the Southern District
of New York. Copies of these materials may be obtained from the
Antitrust Division upon request and payment of the copying fee set by
Department regulations.
Interested persons may submit comments regarding the proposed
termination of the AWA and Foote Final Judgments to the United States.
Such comments must be received by the Antitrust Division within sixty
(60) days and will be filed with the Court by the United States.
Comments should be addressed to John R. Read, Chief, Litigation III
Section, Antitrust Division, U.S. Department of Justice, 325 7th
Street, NW., Suite 300, Washington, DC 20530.
Dorothy B. Fountain,
Deputy Director of Operations, Antitrust Division.
[FR Doc. 06-6625 Filed 8-1-06; 8:45 am]
BILLING CODE 4410-11-M