Addenda to HyperLaw Report #20 Follow-Up.
SF RECORDER ARTICLE OF APRIL 12, 1996
DOJ FILES SECOND REQUEST IN WEST/THOMSON MERGER
CONFIRMS HYPERLAW REPORT THAT DOJ INVESTIGATION TO DATE APPEARS
PERFUNCTORY
An article appearing today, April 12, 1996, in The Recorder (San
Fransisco) by Robert Ablon, states that the Department of Justice has
issued a "second request" for more information from West and Thomson
which on its face might indicate a serious review by DOJ. It
certainly will mean the review will continue for at least another
month, if not longer. But, what kind of investigation?
However, the article, also quoted Edward Jessen, Reporter of
Decisions for California as not being impressed by the DOJ interview.
"'I attempted to convey that West and Thomson are the only two
companies that offer an integrated system of legal reserach and that
there's a tremendous marketing and economic advanatage in that'
Jessen says, 'But they didn't seem too interested in that.'"
Jessen's opinion parallels the statement in The HyperLaw Report # 20
of April 10, 1996 which stated:
"We say this partly because the DOJ has shown, based upon those who
we know have been interviewed, relative if not complete disinterest
in the second factor. This disinterest is shown by: the absence of
specific questions on this issues, the absence of follow-up questions
when the issue is raised by the interviewee, the failure to explore
documents with the interviewee which may relate to this second
element, the failure to conduct follow-up interviews with those who
provide documentary information, and the failure to interview those
identifies as having information relevant to the second factor."
Thus, despite the Second Request by DOJ, there is nothing tangible to
indicate a committed review by DOJ, and anything other than a
"perfunctory" review, to use Ablon's phrase. Time will tell,
perhaps.
The Ablon article also makes reference to Gary Reback as representing
Lexis. The article also states that DOJ claims it is continuing with
its 1994 antitrust review which at the time was described as an
investigation of the on-line legal industry. What is interesting
then would be that Lexis would be one of the two companies being
investigated!!!
The article also mentioned that state Attorney General's are also
conducting investigation, confirming the numerous contacts which have
been rumoured. Persons with concerns should contact the Antitrust
Divisions of their State's Attorney General's offices.
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