CAC Defends Businesses Against Antitrust Attacks

The Center for the Advancement of Capitalism issued public comment letters in two federal antitrust cases pitting government bureaucrats against businessmen whose only "crime" was earning a profit.

FOR IMMEDIATE RELEASE
August 12, 2002
Contact: Skip Oliva
E-mail: smoliva@moraldefense.com
Tel: (202) 223-0071

ALEXANDRIA, VA-The Center for the Advancement of Capitalism today issued public comment letters in two federal antitrust cases, in each case opposing proposed "consent agreements" entered into by the government with businesses alleged of illegal activity.

"Today CAC continues its efforts to make the case for ending antitrust once and for all," CAC Chairman Nicholas Provenzo said. "At a time when the government presumes to attack businesses that fail, why do they continue assaulting those that succeed?"

In the first case, the Federal Trade Commission settled a complaint against California-based Amgen Incorporated over their recent acquisition of Immunex Corporation. The settlement forces Amgen to surrender a number of patents and other intellectual property to a third party in order to "protect competition," in the FTC's words.

In the second case, United States v. Computer Associates International, the U.S. Department of Justice settled a second antitrust complaint against the New York-based technology company over their 1999 acuisition of Platinum Technology. Computer Associates was punished by the DOJ for pursuing joint operations with Platinum before their merger was officially consummated.

"Both of these cases represent a gross abuse of power by the federal government," CAC Director of Federal Affairs S.M. Oliva said. "In the Amgen case, the FTC punished a private business for the government's own misconduct. Amgen was allegedly monoplizing certain types of drug manufacturing, but in fact it was the Food and Drug Administration that was preventing other companies from competing, not Amgen."

Oliva, who authored both comment letters, said the violation of Computer Associates' rights was just as egregious. "Computer Associates was the victim of a vengeful Justice Department, who sought to further punish the company after it had already pursued and obtained a settlement over the Platinum merger."

Copies of both comment letters are available on CAC's website at http://www.capitalismcenter.org.

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The mission of The Center for the Advancement of Capitalism is to present to the public a moral defense of individualism and economic freedom. The Center undertakes projects and activities designed to communicate its message to the public, the press, and policy leaders, targeting issues central to the advancement of laissez-faire capitalism.