U.S. v. The Kansas City Star Co.; Proposed Modification of Final Judgment

DEPARTMENT OF JUSTICE

Antitrust Division

[Civil action No. 53-7989]

U.S. v. The Kansas City Star Co.; Proposed Modification of Final

Judgment

Notice is hereby given that defendant Kansas City Star Company (the

``Star'') has filed with the United States District Court for the

Western District of Missouri a motion to modify the Final Judgment in

United States v. Kansas City Star Company, 1957 Trade Cas. (CCH) para.

68,857 (W.D. Mo. 1957). The Department of Justice (``Department''), in

a stipulation also filed with the Court, has consented to modification

of the Final Judgment, but has reserved the right to withdraw its

consent based on public comments or for other reasons. The Complaint in

this case (filed January 6, 1953) focused on the period 1950-51 and

alleged that the Star dominated the sale of news and advertising in

Kansas City and engaged in a variety of practices designed to exclude

competition, in violation of Section 2 of the Sherman Act, 15 U.S.C. 2.

The Final Judgment (entered on November 15, 1957) ordered the Star

to divest its radio and television interests and enjoins the defendants

from acquiring ``any interest in any commercial radio or television

broadcasting station in Metropolitan Kansas City except upon

application to this Court.'' The defendants were further enjoined from

acquiring any interest in any newspaper publication with a circulation

in Metropolitan Kansas City.

The Final Judgment also enjoins the defendants from price

discrimination, certain types of discounts, and tying of advertising in

various editions of the newspaper. Some of these provisions are

obsolete; others prevent the Star from undertaking certain

procompetitive initiatives.

The proposed modification terminates the existing judgment in its

entirety and substitutes an Amended Final Judgment that requires that

the Star provide the Department with advance notification of Kansas

City newspaper acquisitions valued at $5 million or more but not

subject to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as

amended, 15 U.S.C. 18a. The Amended Judgment will expire in ten years.

The Department has filed with the Court a memorandum setting forth

the reasons why it believes that modification of the Final Judgment

would be in the public interest. Copies

[[Page 42417]]

of the Complaint, the proposed modified Final Judgment, the defendant's

motion papers, the Stipulation containing the Government's tentative

consent, the Department's memorandum, and all further papers filed with

the Court in connection with this motion will be available for

inspection at Room 215, Antitrust Division, Department of Justice, 325

Seventh Street, NW., Washington, DC 20530 (Telephone: (202) 514-2481),

and at the Office of the Clerk of the United States District Court for

the Western District of Missouri, in Kansas City, Missouri. Copies of

any of these materials may be obtained from the Antitrust Division upon

request and payment of the copying fee set by Department regulations.

Interested persons may submit comments to the Department regarding

the proposed modification of the Final Judgment. Such comments must be

received within the sixty-day period established by court order, and

will be filed with the Court by the Department. Comments should be

addressed to M.J. Moltenbrey, Chief, Civil Task Force, Antitrust

Division, Department of Justice, 325 7th Street, NW., Washington, DC

20530 (telephone: (202) 616-5935).

Rebecca Dick,

Director of Civil Enforcement, Antitrust Division.

[FR Doc. 99-20028 Filed 8-3-99; 8:45 am]

BILLING CODE 4410-11-M