FTC Intervenes in the Formation of Proposed Joint Venture Between Boeing and Lockheed Martin
Client Alert | 1 min read | 10.09.06
On October 3, 2006, the FTC filed a complaint intervening in the formation of a joint venture between The Boeing Company and Lockheed Martin Corp. Announced in May of 2005, the joint venture, United Launch Alliance, is designed to consolidate manufacturing and development of the companies' expendable launch vehicles. The FTC's complaint argues that the joint venture would violate Section 7 of the Clayton Act and Section 5 of the FTC Act, as amended. Boeing and Lockheed are the only two companies that supply medium to heavy launch services to the U.S. government, so competition in that market would be reduced. The FTC unanimously approved a consent order requiring the venture to cooperate with all providers of government space vehicles, provide equal consideration and support to all launch service providers when seeking any U.S. government delivery in orbit contract and to safeguard competitively sensitive information obtained from other space vehicle and launch services providers.
Click for more information on the FTC intervention in the proposed joint venture between Boeing and Lockheed Martin.
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