[Federal Register Volume 67, Number 40 (Thursday, February 28, 2002)]
[Notices]
[Pages 9323-9324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4698]


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DEPARTMENT OF JUSTICE

Antitrust Division


United States v. AT&T Corporation and Telecommunications, Inc., 
No. 1:98CV03170 (D.D.C. August 23, 1999); United States' Notice of 
Proposed Termination of the Final Judgment

    Notice is hereby given that the United States and both AT&T 
Corporation (``AT&T'') defendant in the above-captioned matter, and 
Liberty Media Corporation (``Liberty''), have entered into a 
Stipulation to terminate the Final Judgment entered by the United 
States District Court for the District of Columbia on August 23, 1999. 
In this Stipulation filed with the Court, the United States has 
provisionally consented to termination of the Final Judgment, but has 
reserved the right to withdraw its consent pending receipt of public 
comments.
    On December 30, 1998, the United States filed the complaint in this 
case alleging that the merger between AT&T and Tele-Communications, 
Inc., which would result in the indirect acquisition by AT&T of 23.5% 
of the shares of Sprint PCS, a competitor of AT&T in the mobile 
wireless telephone business, would substantially lessen competition in 
the provision of mobile telephone business, would substantially lessen 
competition in the provision of mobile telephone service in many 
geographic areas of the United States and thus violate section 7 of the 
Clayton Act, as amended, 15 U.S.C. 18. At the same time as it filed the 
Complaint, the United States filed a proposal Final Judgment to resolve 
the competitive concerns alleged in the Complaint, and

[[Page 9324]]

a stipulation by defendants and the United States consenting thereto.
    The Final Judgment, which was entered by consent of the parties on 
August 23, 1999, ordered the divestiture of the Spring PCS interest by 
a trustee over a five-year period and includes various provisions to 
ensure that AT&T's indirect partial ownership of Spring PCS would not 
create anticompetitive incentives. These provisions, among others, 
required that all economic benefits of Liberty's Sprint PCS holdings 
must inure exclusively to the holders of the Liberty Media Group 
tracking stock (which was created after the consummation of the merger 
between the defendants), forbade AT&T from transferring any of these 
benefits to AT&T shareholders, required certain amendments to the 
Liberty certificate of incorporation and bylaws, and imposed certain 
restrictions of Liberty's Board of Directors. Liberty also was 
restricted in its ability to acquire any interest in AT&T's wireless 
business.
    On August 10, 2001, having received a favorable letter ruling from 
the Internal Revenue Service, AT&T spun off the businesses represented 
in the Liberty Media Tracking stock of AT&T into a separate, publicly 
traded company, Liberty Media Corporation (``Liberty'').
    The United States, defendant AT&T and Liberty have provisionally 
agreed to terminate the Final Judgment because of the above-noted 
changed circumstances in the relationship between AT&T and Liberty. The 
legal and economic separation of AT&T and Liberty. As a result of the 
August 10, 2001 spin-off, have changed the circumstances under which 
the parties entered into the Final Judgment, which is no longer needed 
to protect competition in the mobile wireless telephone business. 
Therefore, terminating the Final Judgment is in the public interest.
    The United States has filed a memorandum with the Court setting 
forth the reasons it believes termination of the Final Judgment would 
serve the public interest. Copies of the joint motion of the United 
States, AT&T, and Liberty to establish procedures to terminate the 
Final Judgment, the stipulation containing the United States' 
provisional consent to termination of the Final Judgment, the 
supporting memorandum, and all additional papers filed with the Court 
in connection with this motion are available for inspection at 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. 20001. 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 
Wireless Week, and will be filed with the Court by the Department. 
Comments should be addressed to Nancy M. Goodman, Chief, 
Telecommunications and Media Enforcement Section, Antitrust Division, 
U.S. Department of Justice, 1401 H St., NW., Suite 8000, Washington, 
DC. 20530 (telephone: 202-514-5621). Comments may also be sent via 
electronic mail to [email protected] or faxed to the attention of 
Peter Gray at 202-514-6381.

Constance K. Robinson,
Director of Operations.
[FR Doc. 02-4698 Filed 2-27-02; 8:45 am]
BILLING CODE 4410-11-M