Antitrust Law Daily Wrap Up, ANTITRUST NEWS: ALJ's Initial Decision in Pipe Fittings Antitrust Case Delayed 30 Days, (Apr 3, 2013)

By Jeffrey May, J.D.

FTC Chief Administrative Law Judge D. Michael Chappell has extended until May 1 the deadline for filing the Initial Decision in the agency's antitrust action against McWane, Inc.—the largest supplier of ductile iron pipe fittings in the United States. The 30-day extension was deemed appropriate in light of the voluminous record (In the Matter of McWane, Inc., FTC Dkt. No. 9351, March 28, 2013, Chappell, D.).

In January 2012, the FTC filed complaints against McWane, Star Pipe Products, Ltd., and Sigma Corporation—the three largest U.S. suppliers of ductile iron pipe fittings. The three companies were charged with conspiring to set and maintain prices for pipe fittings. The conduct purportedly dated back to 2008.

The agency also has alleged that McWane illegally maintained its monopoly power in the market for U.S.-made pipe fittings. The pipe fittings at issue are used to join pipes, valves, and hydrants and to change or direct the flow of water in municipal, state, and federal drinking and waste water distribution systems.

Only the allegations against McWane have not yet been resolved. As part of a settlement announced along with the complaint, Sigma agreed not to engage in the challenged anticompetitive conduct in the future. In March 2012, Star also agreed to refrain from engaging in the challenged conduct. The companies agreed to refrain from exchanging information with competitors, unless the information was structured in such a way that it will minimize the risk that it will facilitate collusion.

Last summer, the Commission denied McWane's motion for summary decision on all seven counts of the complaint (2012-2 Trade Cases ¶78,061). The Commission concluded that McWane could have engaged in price fixing, monopolization, and attempted monopolization in violation of the FTC Act through an alleged course of conduct that included collusive price increases, the acceptance of centralized pricing authority, and the imposition of exclusive dealing policies.

The Commission also denied Complaint Counsel's request for summary decision as a matter of law on one price fixing count based on a telephone conversation between company executives. The issues of fact were to be resolved at the administrative trial.

In granting the extension pursuant to Commission Rule 3.51, the ALJ noted that the proceedings had generated over 2,000 exhibits, that 53 witnesses had testified, and that there were 6,045 pages of trial transcript. In addition, the parties submitted 3,104 proposed findings of fact.

Companies: McWane, Inc.; Sigma Corp.; Star Pipe Products, Inc.

News: Antitrust FederalTradeCommissionNews