[Federal Register Volume 67, Number 37 (Monday, February 25, 2002)]
[Notices]
[Pages 8559-8560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4435]


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DEPARTMENT OF JUSTICE

Antitrust Division


United States v. Sprint Corp. and Joint Venture Co., Civil No. 
95-1304 (D.D.C.); United States' Notice of Proposed Medication of the 
Final Judgment

    Notice is hereby given that the United States and both Sprint 
Corporation (``Sprint'') and Equant N.V. (``Equant''), defendants in 
the above-captioned matter, have entered into a Stipulation to modify 
the Final Judgment entered by the United States District Court for the 
District of Columbia on February 16, 1996. In this Stipulation filed 
with the Court, the United States has provisionally consented to 
modification of the Final Judgment, but has reserved the right to 
withdraw its consent pending receipt of public comments.
    On July 13, 1995, the United States filed the complaint in this 
case. The complaint alleged that the sale of 20% of the voting shares 
of Sprint to France Telecom (``FT'') and Deutsche Telekom A.G. (``DT'') 
and the formation of a joint venture among Sprint, FT and DT to provide 
certain international telecommunications services, would violate 
section 7 of the Clayton Act, as amended, 15 U.S.C. 18, in the markets 
for international telecommunications services between the United States 
and France and the United States and Germany, and in the markets for 
seamless international telecommunications services. At the same time as 
it filed the Complaint, the United States filed a proposed Final 
Judgment to resolve the competitive concerns alleged in the Complaint, 
and a stipulation by defendants and the United States consenting 
thereto.
    At the time of the entry of the Final Judgment, Joint Venture Co. 
was the proposed joint venture of Sprint, FT and DT. Subsequently, the 
joint venture was formed and given the name Global One. In January 
2000, Sprint, FT and DT agreed to terminate their joint venture, with 
FT acquiring sole ownership of the former joint venture, but Global One 
continued to be bound by the Final Judgment as the successor to the 
joint venture. In July 2001 Global One was acquired by Equant N.V., and 
FT acquired majority ownership and control of Equant. Therefore, 
Equant, as the successor to Global One, is now identified as the 
defendant that was referred to as Joint Venture Co. in the Final 
Judgment, and is substituted for Joint Venture Co. in the proposed 
Modified Final Judgment.
    The Final Judgment, which was entered by consent of the parties on 
February 16, 1996, includes various restrictions affecting Sprint and 
Equant's relationship to FT and DT. These restrictions operated in two 
distinct phases, lessening over time as competition developed in France 
and in Germany. The Phase I restrictions, contained in Section III of 
the Final Judgment, were terminated by the Court on November 2, 1998, 
pursuant to a stipulation between the United States and the defendants, 
in recognition of competitive developments in France and Germany. 
Defendants continue to be subject to the substantive obligations of 
Section II of the Final Judgment until January 1, 2003. The Section II 
obligations, which are intended to prevent Equant and Sprint from 
receiving competitive advantages from their association with FT and DT: 
(1) Require Equant and Sprint to disclose certain information related 
to prices, terms and conditions of certain FT and DT telecommunications 
products and services that are provided in France or in Germany or 
between France and Germany and the United States and are used by Equant 
or Sprint; (2) preclude Equant and Sprint from receiving competitively 
sensitive information from FT and DT that FT and DT obtain from the 
competitors of Equant and Sprint; and (3) prohibit Equant and Sprint 
from offering certain services between the United States and France and 
Germany unless other United States providers also have or can readily 
obtain licenses from the French and German governments to offer the 
same service.
    The United States and defendants Sprint and Equant have 
provisionally agreed to modify the Final Judgment because of changed 
circumstances in the relationship between Equant and Sprint, and FT and 
DT. In June 2001, FT and DT sold their ownership interests in Sprint's 
FON stock, which formed the basis of the United States' concern about 
FT's and DT's acquisition of 10% interests in Sprint, and Sprint sold 
its Global One ownership interest to FT on February 22, 2000. These 
events form the basis for the proposed termination of

[[Page 8560]]

the Final Judgment with respect to Sprint. Furthermore, DT ceased to be 
an owner of Global One even before Global One was acquired by Equant, 
having sold its interest to FT pursuant to an agreement reached on 
January 26, 2000. Therefore, the Final Judgment is also proposed to be 
modified to eliminate any obligations related to DT's relationship with 
Equant. Certain provisions of the Final Judgment applicable to Equant's 
relationship with FT will remain in force, in order to safeguard 
against anticompetitive conduct by FT favoring Equant. Other provisions 
of the Final Judgment relating to FT's relationship to Equant will be 
terminated because they are redundant of other regulatory requirements 
or superfluous in light of market developments. The provisions that 
will remain are the reporting requirements of certain information 
related to the prices, terms and conditions of FT products and services 
sold by FT to Equant.
    The United States has filed a memorandum with the Court setting 
forth the reasons it believes modification of the Final Judgment would 
serve the public interest. Copies of the joint Judgment, the 
stipulation containing the United States' provisional consent to 
modification of the Final Judgment, the supporting memorandum, and all 
additional papers filed with the Court in connection with this motion 
are available for inspection as the Antitrust Documents Group of the 
Antitrust Division, U.S. Department of Justice, 325 7th Street, NW., 
Room 215 North, Liberty Place Building, Washington, DC 20530, and at 
the Office of the Clerk of the United States District Court for the 
District of Columbia, 333 Constitution Avenue, NW., Washington, DC 
2001. Copies of these materials may be obtained from the Antitrust 
Division upon request and payment of the duplicating fee set out in 
Department of Justice regulations.
    Interested persons may submit comments regarding the proposed 
termination to the Department of Justice. Such comments must be 
received by the Antitrust Division within sixty (60) days of the last 
publication of notices appearing in the Wall Street Journal and 
Communications Week International, and will be filed with the Court by 
the Department. Comments should be addressed to Lawrence M. Frankel, 
Acting Chief, Telecommunications Task Force, Antitrust Division, U.S. 
Department of Justice, 1401 H. St., NW., Suite 8000, Washington, DC 
20530.

Constance K. Robinson,
Director of Operations & Merger Enforcement.
[FR Doc. 02-4435 Filed 2-22-02; 8:45 am]
BILLING CODE 4410-11-M