Federal Register/Vol. 81, No. 215/Monday, November 7, 2016
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Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Notices 78187 with section 207.30 of the Commission’s proposed acquisition of Faiveley brake equipment components that make rules. All written submissions must Transport S.A. and Faiveley Transport up a critical system intimately linked to conform with the provisions of section North America would violate Section 7 both the performance and safety of 201.8 of the Commission’s rules; any of the Clayton Act, 15 U.S.C. 18. The trains. Faiveley produces its brake submissions that contain BPI must also proposed Final Judgment, filed at the system components in the United States conform with the requirements of same time as the Complaint, requires through its subsidiary, Faiveley sections 201.6, 207.3, and 207.7 of the Wabtec to divest Faiveley’s U.S. freight Transport North America. Wabtec is a Commission’s rules. The Commission’s brakes business. leading manufacturer of rail equipment Handbook on E-Filing, available on the Copies of the Complaint, proposed used in the assembly of freight cars built Commission’s Web site at https:// Final Judgment, and Competitive Impact for use in the U.S. freight rail network. edis.usitc.gov, elaborates upon the Statement are available for inspection For purchasers of components of freight Commission’s rules with respect to on the Antitrust Division’s Web site at car brake systems, Wabtec and Faiveley electronic filing. http://www.justice.gov/atr and at the are two of the top three suppliers Additional written submissions to the Office of the Clerk of the United States approved by the Association of Commission, including requests District Court for the District of American Railroads (‘‘AAR’’), with pursuant to section 201.12 of the Columbia. Copies of these materials may combined market shares ranging from Commission’s rules, shall not be be obtained from the Antitrust Division approximately 41 to 96 percent for accepted unless good cause is shown for upon request and payment of the many of the products in which they accepting such submissions, or unless copying fee set by Department of Justice compete. Where a product must be AAR the submission is pursuant to a specific regulations. approved, customers must source it request by a Commissioner or Public comment is invited within 60 from an AAR-approved supplier of that Commission staff. days of the date of this notice. Such product. In accordance with sections 201.16(c) comments, including the name of the 2. In 2010, Faiveley entered into a and 207.3 of the Commission’s rules, submitter, and responses thereto, will be joint venture with Amsted Rail each document filed by a party to the posted on the Antitrust Division’s Web Company, Inc. (‘‘Amsted’’), a rail investigation must be served on all other site, filed with the Court, and, under equipment supplier based in Chicago, parties to the investigation (as identified certain circumstances, published in the Illinois, to form Amsted Rail Faiveley by either the public or BPI service list), Federal Register. Comments should be LLC (‘‘ARF’’). Faiveley owns 67.5 and a certificate of service must be directed to Maribeth Petrizzi, Chief, percent of ARF and Amsted owns the timely filed. The Secretary will not Litigation II Section, Antitrust Division, remaining 32.5 percent interest in the accept a document for filing without a Department of Justice, 450 Fifth Street joint venture. As part of the joint certificate of service. NW., Suite 8700, Washington, DC 20530 venture, all of the freight car brake Authority: This investigation is being (telephone: 202–307–0924). system components that are conducted under authority of title VII of manufactured by Faiveley Transport Patricia A. Brink, North America are marketed and sold to the Tariff Act of 1930; this notice is Director of Civil Enforcement. published pursuant to section 207.21 of customers by Amsted. Amsted and the Commission’s rules. United States District Court for the Faiveley do not compete for the sale of District of Columbia brake system components. Critically, the By order of the Commission. joint venture allows Faiveley to bundle Issued: November 1, 2016. United States of America, U.S. Department brake components with Amsted’s other Lisa R. Barton, of Justice, Antitrust Division, 450 Fifth Street products such as wheels and axles, NW., Suite 8700, Washington, DC 20530 Secretary to the Commission. Plaintiff, v. Westinghouse Air Brake thereby increasing its ability to compete [FR Doc. 2016–26780 Filed 11–4–16; 8:45 am] Technologies Corp., 1001 Airbrake Avenue, for the sale of freight car brake system BILLING CODE 7020–02–P Wilmerding, PA 15148, Faiveley Transport components. S.A., Le Delage Building, Hall Parc— 3. Wabtec’s proposed acquisition of Baˆ timent 6A, 6e`me e´tage, 3, rue du 19 mars Faiveley would eliminate head-to-head 1962, 92230 Gennevilliers, CEDEX—France competition in the development, DEPARTMENT OF JUSTICE and Faiveley Transport North America, 50 manufacture, and sale of several Beachtree Boulevard, Greenville, SC 29605, Antitrust Division components of freight car brake systems Defendants. in the United States. The proposed Case No.: 1:16-cv-02147 United States v. Westinghouse Air Judge: Tanya S. Chutkan acquisition likely would give Wabtec Brake Technologies Corp., Proposed Filed: 10/26/2016 the incentive and ability to raise prices Final Judgment and Competitive or decrease the quality of service Complaint Impact Statement provided to customers in the railroad The United States of America, acting freight industry. The proposed Notice is hereby given pursuant to the under the direction of the Attorney acquisition also would eliminate future Antitrust Procedures and Penalties Act, General of the United States, brings this competition for control valves, the most 15 U.S.C. 16(b)–(h), that a proposed civil antitrust action to enjoin the safety-critical component on a freight Final Judgment, Hold Separate proposed acquisition of Faiveley car. If approved, the proposed Stipulation and Order, and Competitive Transport S.A. and Faiveley Transport acquisition would eliminate the entry of Impact Statement have been filed with North America (collectively, ‘‘Faiveley’’) Faiveley into this market, thus the United States District Court for the by Westinghouse Air Brake maintaining a century-old duopoly District of Columbia in United States of Technologies Corporation (‘‘Wabtec’’) between Wabtec and its only other America v. Westinghouse Air Brake and to obtain other equitable relief. The control valve rival, and reducing the Technologies Corp. et al., Civil Action United Sates alleges as follows: two incumbent control valve suppliers’ No. 1:16-cv-02147. On October 26, 2016, incentive to compete. the United States filed a Complaint I. Introduction 4. Accordingly, the proposed alleging that Westinghouse Air Brake 1. Wabtec proposes to acquire acquisition likely would substantially Technologies Corp.’s (‘‘Wabtec’’) Faiveley, a global provider of railway lessen existing and future competition VerDate Sep<11>2014 16:02 Nov 04, 2016 Jkt 241001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\07NON1.SGM 07NON1 sradovich on DSK3GMQ082PROD with NOTICES 78188 Federal Register / Vol. 81, No. 215 / Monday, November 7, 2016 / Notices in the development, manufacture, and socie´te´ anonyme based in Gennevilliers, the safety and performance of a freight sale of freight car brake system France. train. components in the United States in 10. On July 27, 2015, Wabtec entered B. Railroad Freight Industry Regulation violation of Section 7 of the Clayton into an Exclusivity Agreement with Act, 15 U.S.C. 18, and should be Faiveley whereby it made an irrevocable 14. Freight cars often must travel over enjoined. offer to acquire Faiveley, for cash and multiple railroads’ trackage in order to stock totaling approximately $1.8 deliver commodities throughout the II. Jurisdiction and Venue billion, including assumed debt. The United States. Traveling over multiple 5. The United States brings this action proposed acquisition would create the lines requires freight car equipment to pursuant to Section 15 of the Clayton world’s largest rail equipment supplier be mechanically interoperable and meet Act, as amended, 15 U.S.C. 25, to with expected revenue of approximately performance standards for certain types prevent and restrain the defendants $4.5 billion per year and a presence in of rail equipment. In order for the brake from violating Section 7 of the Clayton every key rail market in the world. systems on individual freight cars to Act, 15 U.S.C. 18. work together properly, freight car brake 6. Defendants manufacture and sell IV. Trade and Commerce systems must be comprised of industry- components of freight car brake systems A. Industry Overview approved components and meet critical throughout the United States. They are performance standards. engaged in a regular, continuous, and 11. Rail freight transport is the use of 15. The Federal Railroad substantial flow of interstate commerce, railroads and freight trains to transport Administration of the U.S. Department and their activities in the development, cargo. A freight train is a group of of Transportation establishes strict manufacture, and sale of rail equipment freight cars hauled by one or more standards to ensure interoperability of have had a substantial effect upon locomotives on a railway. A typical freight cars in use within the U.S. interstate commerce. The Court has freight locomotive can haul as many as freight rail network. These standards subject-matter jurisdiction over this 25 to 100 freight cars. require that certain freight car action pursuant to Section 15 of the 12. The railroad freight industry plays components achieve common Clayton Act, 15 U.S.C. 25, and 28 U.S.C. a significant role in the U.S. economy, performance and interoperability 1331, 1337(a), and 1345.