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Posts Tagged ‘DOJ’
January 13th, 2020 at 3:53 pm
On Sabre/Farelogix Merger, DOJ Mustn’t Undertake a Misguided Antitrust Boondoggle
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The U.S. travel technology firm Sabre may not ring an immediate bell, and perhaps you’ve not yet heard of its proposed acquisition of Farelogix, but it looms as one of the most important antitrust cases to approach trial since AT&T/Time-Warner.

The transaction’s most significant aspect is the way in which it offers a perfect illustration of overzealous bureaucratic antitrust enforcement, and the way that can delay and also punish American consumers.

Specifically, the transaction enhances rather than inhibits market competition, and will benefit both travelers and the travel industry by accelerating innovation.  That’s in part because Sabre and Farelogix aren’t head-to-head market competitors, but rather complementary businesses.  While Sabre serves customers throughout the industry – such as travel agencies, travel management companies and travel providers – Farelogix serves only a limited number of airlines.  Additionally, Farelogix remains small and growth-constrained, with only $7 million in revenues generated in the U.S. last year via its most important product offering, Open Connect.

Furthermore, Farelogix’s technology is based on the “New Distribution Capability,” a non-proprietary standard that dozens of companies as well as airlines already use. In its roughly 10 years of existence, Farelogix has been unable to gain meaningful traction in the airline industry. This is due to Farelogix’s demonstrated inability to scale its offerings, its position as simply an IT input among numerous competitors, and the growing industry realization that its product cannot substitute for the suite of services GDSs, like Sabre, provide.

In contrast, Sabre possesses the scale and resources to better leverage Farelogix’s products and talent to the benefit of both companies’ customers and travelers more generally. By acquiring Farelogix, Sabre can maximize value and convenience to its airline and agency customers and accelerate the delivery of a comprehensive platform for retailing and distribution that will drive competition and offer a high-value product for all customers.

Accordingly, considering the challenges and costs associated with those beneficial and critical objectives, the proposed acquisition shouldn’t be needlessly and unfairly delayed from improving the travel marketplace.

Unfortunately, the Department of Justice (DOJ) in its misplaced complaint bungles several important details.

For instance, contrary to the DOJ’s assertion, Sabre doesn’t seek to “kill” Farelogix. To the contrary, Sabre has repeatedly committed to maintaining current pricing, service levels and investment for existing Farelogix products.  The DOJ also gets it wrong in labeling U.S.-based Sabre the “dominant” company in the industry, as Spanish rival Amadeus is significantly larger and already possesses the NDC-based capabilities that Sabre hopes to acquire from Farelogix.  The DOJ also erroneously defines the relevant market in domestic terms only, because these companies operate in what is a decidedly global marketplace, with providers servicing customers worldwide, regardless of geography.

So why does the DOJ hope to prevent Sabre from acquiring and investing in the same capabilities as its larger Spanish rival – capabilities that must be scaled in order for the industry to satisfy consumers’ needs?  Sabre’s focus remains driving change, not entrenching the status quo.  Sabre’s CEO once ran Frontier Airlines, and has spent the past three years transforming Sabre into an agile, modern business. The proposed Farelogix acquisition is a critical part of that effort.

The DOJ has stubbornly and illogically opposed previous complimentary mergers, like AT&T/Time-Warner, and lost. They should expect the same outcome here.

Hopefully, the DOJ considers the facts before it repeats similar missteps, and needlessly penalizes global travelers in the meantime.  It shouldn’t remain stuck in the past while attempting to keep travel consumers stuck there with them.

August 2nd, 2019 at 1:33 pm
Texas A.G. Paxton Irrationally Joins Leftist A.G. Colleagues in Multistate Lawsuit Opposing T-Mobile/Sprint Merger
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Inexplicably, Texas Attorney General Ken Paxton has elected to join leftist state attorneys general in their multistate lawsuit opposing a T-Mobile/Sprint merger that the Department of Justice (DOJ) has approved, and a majority of Federal Communications Commission (FCC) commissioners support.

That lawsuit took the unprecedented step of challenging the proposed merger before the federal agencies had even completed their review process, demonstrating that their opposition had less to do with the facts and market realities of the case than political grandstanding.  Clearly, their state-level lawsuit centers not on the merits of the merger, especially in light of the DOJ’s announcement this week, which would introduce even greater network capacity and competition to the telecom marketplace.

By indefensibly choosing to join that lawsuit, Paxton now seeks to halt an extraordinary opportunity to accelerate innovation and 5G deployment in the U.S., bridge the digital divide in rural and urban communities and boost high-paying American jobs.

We at CFIF have long supported the proposed merger for all of these reasons and more, and we hope that Paxton and anyone else considering such a needlessly unwise position reconsider.

April 22nd, 2019 at 1:09 pm
WSJ Urges Regulators to Approve T-Mobile/Sprint Merger
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We at CFIF have steadfastly highlighted the consumer benefits of the proposed T-Mobile/Sprint merger, and cautioned the federal government against any pointless and destructive objection to the deal.  In today’s Wall Street Journal, its editorial board encourages the Department of Justice (DOJ) to move forward on the deal:

The Justice Department lost its lawsuit to block AT&T’s purchase of Time Warner.  Yet now the antitrust cops are holding up T-Mobile’s merger with Sprint even though it could give AT&T more competition in wireless.  What gives?

A year ago, T-Mobile announced plans to acquire Sprint for $26 billion in stock, yet the merger is still stuck in government antitrust purgatory.  The Federal Communications Commission keeps pausing its 180-day shot clock on the merger review to let staff and third parties dig through documents to trash the deal.”

The piece goes on to neatly summarize the benefits the merger would bring:

With more than 100 million customers, the new T-Mobile would be a stronger competitor to Verizon Wireless (118 million) and AT&T (94 million).  It would also offer a broader mix of spectrum that would improve service.  T-Mobile boasts low-band spectrum that increases coverage in rural areas.  Sprint is sitting on mid-band spectrum that can transmit more data at higher speeds in urban areas.”

Simply put, it’s time for regulators to approve the merger to release the fruits that it promises.

May 23rd, 2016 at 2:00 pm
In Frightening and Extraordinary Order, Federal Judge Sanctions Obama DOJ’s “Calculated Plan of Unethical Conduct” in Immigration Case
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The Court does not have the power to disbar the counsel in this case, but it does have the power to revoke the pro hac vice status of out-of-state lawyers who act unethically in court.”

During my years of legal practice, if I received anything close to that official rebuke from a federal judge, the only question in my mind would’ve been whether to bother stopping by the managing partner’s office to receive a formal termination notice before packing up my belongings.

But that’s exactly the rebuke that federal Judge Andrew Hanen just issued against Barack Obama’s Department of Justice.  The occasion for this extraordinary and frightening order was the Administration’s bald misconduct in litigating the immigration executive order case now before the U.S. Supreme Court:

The United States Department of Justice (“DOJ” or “Justice Department”) has now admitted making statements that clearly did not match the facts.  It has admitted that the lawyers who made these statements had knowledge of the truth when they made these misstatements…

To say that the government acted contrary to its multiple assurances to this Court is, at best, an understatement.  The Government knowingly acted contrary to its representations to this Court on over 100,000 occasions.  This Court finds that the misrepresentations detailed above:  (1) were false;  (2)  were made in bad faith;  and (3) misled both the Court and the Plaintiff States.  The misconduct in this case was intentional, serious and material.  In fact, it is hard to imagine a more serious, more calculated plan of unethical conduct.  There were over 100,000 instances of conduct contrary to counsel’s representations;  such a sizable omission cannot be classified as immaterial.”

Lest anyone attempt to dismiss this outrage as limited to a few attorneys, Judge Hanen’s order extended to the DOJ itself:

[W]hatever it is that the Department of Justice Office of Professional Responsibility has been doing, it has not been effective.  The Office of Professional Responsibility purports to have as its mission, according to the Department of Justice’s website, the duty to ensure that Department of Justice attorneys ‘perform their duties in accordance with the high professional standards expected of the Nation’s principal law enforcement agency.'”


Among other remedies, Judge Hanen ruled that any DOJ lawyer based in Washington, D.C. who “appears or seeks to appear” in any state or federal court among those 26 states involved in the immigration case attend remedial ethics courses.  Additionally, current Attorney General Loretta Lynch was specifically ordered to come up with a program to prevent future misconduct of this sort.

Anyone still curious regarding the origins of the political and social turmoil this nation is suffering after two terms under Obama, look no further.  When a president and his administration cannot even be trusted to tell the truth in pleadings and statements to a federal court, we approach a disintegration of the rule of law.  The potential repercussions, both near-term and long-term, are terrifying to contemplate.

August 26th, 2014 at 7:57 pm
DOJ: We Have Lois Lerner’s “Lost” Emails

Apparently, you can lie to Congress but not to Judicial Watch.

The conservative watchdog organization is publicizing an admission by the Department of Justice that government officials can access emails reportedly lost in a hard drive crash.

The messages – correspondence to and from former IRS manager Lois Lerner – have been sought by congressional investigators seeking more information about the agency’s targeting of conservative advocacy groups filing for tax-exempt status.

In sworn testimony, IRS officials have told members of Congress that thousands of emails sent from Lerner’s government account could not be retrieved because a back-up system had also been erased.

But now attorneys at the DOJ are singing a different tune.

“Judicial Watch President Tom Fitton said Justice Department lawyers informed him that the federal government keeps a back-up copy of every email and record in the event of a government-wide catastrophe,” reports the Washington Examiner.

That includes Lerner’s IRS emails.

But don’t expect them to be produced anytime soon. The DOJ is claiming that the newly revealed back-up system would be “too onerous to search,” but did say that Treasury Department inspectors are looking into it.

While the litigators wrangle, we’re left with yet more evidence that the Obama administration doesn’t mind playing fast and loose with the truth – even under oath.

The House of Representatives already voted back in May to hold Lerner in contempt of Congress for refusing to testify; making her the second administration official after Attorney General Eric Holder to receive such a dishonor.

If it’s true that top IRS brass lied under oath to Congress about the whereabouts of Lerner’s potentially damaging emails, one wonders what message House leadership would send to this latest act of executive defiance.

August 21st, 2014 at 1:38 pm
Judge Orders Release of Fast and Furious Documents

Soon the American people may finally get some clarity about the Fast and Furious scandal.

U.S. District Judge Amy Berman Jackson ruled that the Department of Justice must provide a list of documents related to the gun-running scheme that it says are protected by executive privilege. The list will be turned over to investigators at the U.S. House of Representatives Committee on Oversight and Government Reform, chaired by Rep. Darrell Issa (R-CA).

Disclosing the list will allow House investigators to challenge DOJ’s privilege claim for shielding each document, a case-by-case process that will likely result in at least some transparency into the murky program that enabled Mexican drug cartels to kill a U.S. Border Agent and scores of Mexicans.

H/T: National Review Online

October 25th, 2013 at 1:10 pm
DOJ Steps Up Thuggishness in Louisiana School Choice Case
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The idea that this disservice to poor, primarily African-American children is is the product of the nation’s first black Attorney General, serving at the pleasure of its first black president is appalling. From Elizabeth Harrington at the Washington Free Beacon:

The Justice Department is attempting to block parents from defending the Louisiana school voucher program in court, according to a brief filed Tuesday.

… The DOJ is seeking a permanent injunction against the school choice program, which would block access to vouchers beginning in 2014 unless a federal judge approves them. The lawsuit claims the vouchers are “impeding desegregation” because some recipients were in the racial minority at their failing school. Vouchers are awarded randomly by lottery.

The DOJ said in a motion filed Tuesday that parents whose kids have benefited from the program have no legal standing to become defendants in the case.

The racial bean-counting is (A) a fig leaf for the Administration’s real goal of scoring a win against school choice and (B) a window into the collectivist’s soul: they care more about the amalgamation of pigment in any given classroom than the lives of the children living within that skin. Now add to that injury the insult of being told by your government that you have no right to defend your child’s right to a decent education.

Shameful and wrong. Let us hope that the DOJ is defeated—and that the courts treat it with the scorn it so richly deserves,

August 14th, 2013 at 12:01 am
Ramirez Cartoon: Obama-Holder DOJ
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Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

July 30th, 2013 at 9:59 am
Ramirez Cartoon: The Holder Justice Department
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Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

May 31st, 2013 at 6:57 pm
DOJ Defends AG Holder, Says No Perjury Committed

Officials at the Department of Justice say boss Attorney General Eric Holder did not commit perjury when he lied to Congress under oath.

Okay, that’s a little unfair (but only a little).

Here’s the way CNN phrases it: “Attorney General Eric Holder’s sworn testimony before lawmakers this month was ‘accurate and consistent with the facts,’ a Justice Department spokesman stressed late Thursday.”

Apparently, those facts are these: Since Holder and DOJ are not intending to prosecute Fox News reporter James Rosen as a co-conspirator in a national security leak investigation, Holder was telling the truth when he said under oath that prosecuting journalists “is not something I’ve ever been involved in, heard of, or would think would be wise policy.”

But as I said yesterday knocking down a similar argument, that’s fallacious. There is zero chance a federal judge would have approved of the Rosen search warrant had investigators not labeled him a co-conspirator, implying that he too would be prosecuted.

Wrong too is any idea that anyone in the Justice Department is going to say or do anything to question their boss’s fitness for office.

That job belongs to Congress. And, if the evidence they uncover convinces a majority that Holder is unfit to be Attorney General, they should impeach him.

April 24th, 2012 at 2:19 pm
Holder’s DOJ Continues Racialist Practices with Lawsuit Against Jacksonville Fire Department
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As has been chronicled at length here at CFIF, one of the hallmarks of Eric Holder’s Justice Department has been its insistence on injecting race into the public square as often as possible. And one of the areas where this has played out in department policy has been in the DOJ’s repeated threats to crack down on police and fire forces for what it claims are racially discriminatory employment practices.

In 2009, for example, the New Haven, Connecticut, Fire Department threw out the results of a standardized test aimed at measuring candidates’ suitability for promotion when the number of African-American candidates who passed was deemed insufficiently high. The department was motivated in part by fear of a Justice Department lawsuit — a fear that proved to be well-founded when the DOJ filed suit against the state of New Jersey the following year because white test-takers had a higher passage rate (89 percent) than black (73 percent) or Hispanic (77 percent) candidates in an exam for police promotions.

Neither of these cases featured allegations that the tests or the promotion processes were inherently racist. Rather, they simply rested on the DOJ’s notion that unequal outcomes are inherently unjust; that the fact of disparate results was sufficient, in and of itself, to reveal systemic injustice.

So far, the results of DOJ pressure have been mixed. The New Haven firefighters whose successful test results were thrown out took their case all the way to the Supreme Court, where the justices ruled in their favor, 5-4. In New Jersey, however, the DOJ’s bullying tactics won the day, with the state agreeing to revise the exam and issue back pay to minority officers (many of whom resented the feds’ “help”).

Yet that inconsistent track record isn’t keeping the department from going at it again. This time they’re taking the show to Jacksonville, Florida. Per a DOJ release from yesterday:

The Justice Department today filed a lawsuit against the city of Jacksonville, Fla., alleging that the city is engaged in a pattern or practice of employment discrimination against African-Americans in its fire and rescue department in violation of Title VII of the Civil Rights Act of 1964.  The lawsuit challenges the fire department’s use of written examinations for the promotion of firefighters to four ranks – Lieutenant, Captain, and District Chief, all in the suppression line, and Engineer…

The United States’ complaint alleges that the examinations impact African-American candidates in two ways.  First, African-American candidates for promotion to the four positions pass the examinations at significantly lower rates than white candidates.  Second, even those African-Americans who pass the examinations are rarely promoted because the fire department selects candidates for promotion in descending rank-order based primarily upon each candidate’s written examination score and African-American candidates score significantly lower than whites.

Notice that there’s nothing in there that any fair observer could characterize as bias. Rather, the complaint is, in essence, that the Jacksonville Fire Department is too objective.

As the police officers in New Jersey noted in the piece linked above, even a successful outcome for the DOJ will not have the effect of helping out minority officers, whose qualifications will now be called into question on the basis of de facto affirmative action.

If the feds really wanted to help out, they would examine the underlying causes of why the tests exhibit racial disparities in the first place. Could it be that America’s public schools — rotting as the result of the influence of teachers unions — have disproportionately failed minority communities? Could it be that the social pathologies subsidized in perpetuity by the welfare state have thwarted upward mobility in poor neighborhoods?

Answering those questions, of course, would require some real soul-searching. And it might also require giving up the notion that good intent is sufficient to make Democrats the perpetual guardians of America’s minority communities, no matter what kind of havoc their policies wreak in reality. But that’s a level of introspection we shouldn’t expect from this Administration. In Eric Holder’s DOJ, it’s easier to just file a lawsuit and assume that the other guy’s a racist.