S 1121 IS, Antitrust Improvements Act of 1999.
Re: limiting telecommunications mergers and acquisitions.
Date Introduced: May 25, 1999.
Sponsor: Sen. Patrick Leahy (D-VT).
Source: Library of Congress.

See also, Tech Law Journal Summary of Bills Pertaining to Telecom Antitrust Merger Reviews in the 106th Congress.

To amend the Clayton Act to enhance the authority of the Attorney General to prevent certain mergers and acquisitions that would unreasonably limit competition.

IN THE SENATE OF THE UNITED STATES

May 25, 1999

Mr. LEAHY introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To amend the Clayton Act to enhance the authority of the Attorney General to prevent certain mergers and acquisitions that would unreasonably limit competition.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Antitrust Improvements Act of 1999'.

SEC. 2. PURPOSE.

The purpose of this Act is to enhance the authority of the Attorney General to prevent certain mergers and acquisitions that would unreasonably limit competition in the telecommunications industry in any case in which certain Federal requirements that would enhance competition are not met.

SEC. 3. RESTRAINT OF TRADE.

The Clayton Act (15 U.S.C. 12 et seq.) is amended--

(1) by redesignating section 27 (as designated by section 2 of Public Law 96-493) as section 29; and

(2) by inserting after section 27 (as added by the Curt Flood Act of 1998 (Public Law 105-297)) the following new section:

`SEC. 28. (a) In this section, the term `large local telephone company' means a local telephone company that, as of the date of a proposed merger or acquisition covered by this section, serves more than 5 percent of the telephone access lines in the United States.

`(b) Notwithstanding any other provision of law, a large local telephone company, including any affiliate of such a company, shall not merge with or acquire a controlling interest in another large local telephone company unless--

`(1) the Attorney General finds that the proposed merger or acquisition will promote competition for telephone exchange services and exchange access services; and

`(2) the Federal Communications Commission finds that each large local telephone company that is a party to the proposed merger or acquisition, with respect to at least 1/2 of the access lines in each State served by that company, of which at least 1/2 are residential access lines, has fully implemented the requirements of sections 251 and 252 of the Communications Act of 1934 (47 U.S.C. 251, 252), including the regulations of the Commission and of the States that implement those requirements.

`(c) Not later than 10 days after the Attorney General makes a finding described in subsection (b)(1), the Attorney General shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report on the finding, including an analysis of the effect of the merger or acquisition on competition in the United States telecommunications industry.

`(d)(1) Each large local telephone company or affiliate of a large local telephone company proposing to merge with or acquire a controlling interest in another large local telephone company shall file an application under this section with respect to the merger or acquisition with both the Attorney General and the Federal Communications Commission on the same day.

`(2) The Attorney General and the Federal Communications Commission shall issue a decision regarding the application within the time period applicable to review of mergers under section 7A.

`(e)(1) The district courts of the United States are vested with jurisdiction to prevent and restrain any mergers or acquisitions described in subsection (d) that are inconsistent with a finding under paragraph (1) or (2) of subsection (b).

`(2) The Attorney General may institute proceedings in any district court of the United States in the district in which the defendant resides or is found or has an agent and that court shall order such injunctive, and other relief, as may be appropriate if--

`(A) the Attorney General makes a finding that a proposed merger or acquisition covered by an application under subsection (d) does not meet the condition specified in subsection (b)(1); or

`(B) the Federal Communications Commission makes a finding that 1 or more of the parties to the proposed merger or acquisition do not meet the requirements specified in subsection (b)(2).'.

SEC. 4. PRESERVATION OF EXISTING AUTHORITIES.

(a) IN GENERAL- Nothing in this Act or the amendment made by section 3(2) shall be construed to modify, impair, or supersede the applicability of the antitrust laws, or any authority of the Federal Communications Commission under the Communications Act of 1934 (47 U.S.C. 151 et seq.), with respect to mergers, acquisitions, and affiliations of large local exchange carriers.

(b) ANTITRUST LAWS DEFINED- In this section, the term `antitrust laws' has the meaning given that term in the first section of the Clayton Act (15 U.S.C. 12).

SEC. 5. APPLICABILITY.

This Act and the amendment made by section 3(2) shall apply to a merger or acquisition of a controlling interest of a large local telephone company (as that term is defined in section 27 of the Clayton Act, as added by such section 3(2)), occurring on or after the date of the enactment of this Act.