BU Now » Department of Justice

Apple online-music antitrust probe

Dick Taffe — Wed, 26 May 2010 21:25:28 +0000

The Justice Department reportedly is in the early stages of an antitrust investigation against Apple Inc., the largest seller of music online, looking into allegations that it used its dominant market position to try to keep music labels from granting exclusive access to content to Amazon.com. Law Professor Keith Hylton, an authority on antitrust law, says it makes sense for Apple to trim market support for certain songs when gets a smaller share of the profits from their sale — but they’re gotten aggressive about it lately.

“There are details that might indicate that they have gone too far in some instances; that remains to be seen. Still, in the long run, consumers generally gain from this activity.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

Morgan Stanley new Fed target

Dick Taffe — Wed, 12 May 2010 21:16:18 +0000

Wall Street investment bank Morgan Stanley reportedly is being investigated by federal authorities to see if it misled investors about mortage-derivatives deals it helped design and sometimes bet against. This is on the heels of the Securities and Exchange Commission charging Goldman Sachs with securities fraud involving similar collateralized debt obligations or CDOs. Law Professor Elizabeth Nowicki, a former SEC attorney and Wall Street lawyer, says this suggests Morgan Stanley might end up in the same position as Goldman is in.

“The federal government is now making clear that they will take the aggressive watchdog actions they have recently been chastised for not taking over the past two years. The bigger question is what other banks can expect a phone call from the SEC or the DoJ.”

Contact Elizabeth Nowicki, 518-867-5355, enowicki@bu.edu

Apple draws antitrust suspicions

Dick Taffe — Tue, 04 May 2010 19:39:26 +0000

Federal antitrust enforcers are considering a probe into Apple Inc. after changes in the company’s licensing agreement with iPhone application developers that forbids the use of software tools other than Apple’s to build programs or the transmission of analytical data to third parties like advertisers. It’s yet to be decided if the inquiry would be conducted by the Federal Trade Commission or the Department of Justice. School of Management Professor Michael Salinger, a former FTC director, says there was a time when the DoJ might have gone easier on Apple than the FTC.

“During the Bush years, Apple would surely have preferred that DoJ get the case. I question whether that is still true.”

Contact Michael Salinger, 617-353-4408, salinger@bu.edu

Goldman faces criminal probe

Dick Taffe — Fri, 30 Apr 2010 20:31:38 +0000

Beleagured Wall Street giant Goldman Sachs, already sued by the SEC on securites-fraud civil charges, reportedly is now being investigated by the Department of Justice for possible criminal charges. Law Professor Elizabeth Nowicki, both a former SEC attorney and Wall Street lawyer, called the revelations stunning.

“This is not a usual occurrence at all, and it is far more serious, in my view, than the SEC’s securities fraud lawsuit.”

Contact Elizabeth Nowicki, 518-867-5355, enowicki@bu.edu

New antitrust guidelines for mergers

Dick Taffe — Tue, 20 Apr 2010 22:43:20 +0000

U.S. antitrust regulators from the Department of Justice and the Federal Trade Commission have proposed new guidelines for how they scrutinize mergers for possible antitrust violations. Law Professor Keith Hylton, an antitrust law authority, and School of Management finance Professor Michael Salinger, a former FTC director, agree the proposed guidelines more accurately reflect current practice — but that only time will tell if they’ll work.

Hylton: “As defendants become better acquainted with actual practice, the FTC may find that it prefers to make further changes down the road.”

Salinger: “What remains to be seen is whether the courts will accept the less structured approach.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu, or Michael Salinger, 617-353-4408, salinger@bu.edu

Agriculture antitrust concerns

Dick Taffe — Fri, 12 Mar 2010 17:03:50 +0000

The Justice and Agriculture Departments are launching a series of year-long public meetings to explore if antitrust practices in the agriculture industry are driving up food prices — with the big target being Monsanto, the world’s largest seed firm. Law Professor Keith Hylton, an authority on antitrust law, says the productivity of Monsanto’s genetically engineered seeds must be considered.

“Conventional seeds may have all but disappeared. Because they are so much less productive than the genetically engineered variety, few large-scale farm operations have an interest in them now. This is a question for the regulators to consider.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

Report: DoJ probing telecom industry

Dick Taffe — Mon, 06 Jul 2009 18:52:19 +0000

The Justice Department reportedly has launched a probe to see if large U.S. telecom companies (AT&T, Verizon) are abusing their recently won market power. For instance, are wireless carriers locking up popular smart-phones by having exclusive agreements with handset makers? School of Law Professor Keith Hylton, an expert on antitrust law, can look at the possible ramifications.

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

More antitrust scrutiny for Google

Dick Taffe — Wed, 10 Jun 2009 14:37:06 +0000

Google’s 2008 deal with publishers to make millions of books available online is rasing more antitrust suspicion from the Justice Department, which still may try to block or force a renegotiation of the deal which has not yet been approved in court. Formal civil investigative demands (CIDs) have now been sent to Google and the publishers. School of Law Professor Keith Hylton, an antitrust-law expert, can discuss the widening probes.

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu