Klein Testifies Before Senate Antitrust Subcommittee
(February 26, 1998.) Antitrust chief Joel Klein ducked Senate questions about the proposed Computer Associates - Computer Sciences Corp. merger, but used the occasion to ask for more authority, staffing and funding. Klein, the Assistant Attorney General in charge of the Antitrust Division, testified before the Antitrust Subcommittee of the Senate Judiciary Committee on February 26, 1998.
Sen. Specter (R-PA) asked: "Are you in a postion to make a comment on antitrust implications if the company which is now number three acquires CSC?" Klein responded: "The only comment that I can make Senator, is that that is a merger that will be before the Antitrust Division for investigation, and, obviously a large merger, we will give it our thorough scrutiny."
The Senate Judiciary Committee is conducting a series of oversight hearings concerning the antitrust division, and the computer and telecommunications industries. Today's hearing dealt mostly with criminal prosecution of international cartels. Klein wants the Congress to pass legislation the would increase from ten million dollars to one hundred million dollars the maximum fine which assessed.
Sen. Arlen Specter (R-PA), whose homestate Corestates Bank is merging with North Carolina based First Union, is disturbed with what he calls "merger mania". However, Klein would not comment on his division's review of the matter, nor on merger policy generally; but, he repeatedly stressed that the merger caseload is growing, and that merger personnel are overworked and underpaid.
Sen. Mike DeWine (R-OH) chaired the hearing. Also participating at various times were Sen. Herb Kohl (D-WI), Sen Robert Torricelli (D-NJ), and Sen. Arlen Specter (R-PA). AAG Klein was the only witness at the hearing.
The Senate Judiciary Committee will conduct a hearing on March 4 at which Microsoft Corporation CEO Bill Gates will be a witness. Microsoft is currently the defendant in an action brought by the Antitrust Division.
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