Source: http://www.justice.gov/atr/cases/f7100/7132.htm
Timestamp: 2015-03-06 17:35:07
Document Index: 718730761

Matched Legal Cases: ['§ 25', '§ 18', '§ 22', '§ 1331', '§ 22', '§ 1391']

Complaint : U.S. v. Raytheon Company, General Motors Corporation and HE Holdings, Inc.
v. RAYTHEON COMPANY, 141 Spring Street Lexington, MA 02173, GENERAL MOTORS CORPORATION, 3044 West Grand Boulevard Detroit, MI 48202, and HE HOLDINGS, INC., 3044 West Grand Boulevard Detroit, MI 48202,
| Civil No.: 1:97CV02397
Filed: 10/16/97
United States, brings this civil action to obtain equitable relief against defendants and alleges
as follows: 1. The United States brings this antitrust case to block the proposed combination of
Raytheon Company ("Raytheon") and Hughes Aircraft Company ("Hughes") a wholly owned
subsidiary of HE Holdings, Inc. ("HE Holdings") and an indirect subsidiary of General
Motors Corporation ("General Motors"). Raytheon and Hughes are the only two firms that
design, develop, and produce second generation ("2nd Gen.") electro-optical ("EO") systems
for Department of Defense ("DoD") ground applications. Raytheon and Hughes are also the only two firms that design, develop, and produce critical infrared ("IR") detectors, called
"SADA II" detectors, used in ground EO systems, and are the leading firms that develop and
produce staring IR detectors used for sensors in missile seeker heads and aircraft and missile
warning system applications.
2. If Raytheon acquires Hughes, it will obtain a monopoly in the production of
ground EO systems for all current Army programs. If Raytheon acquires Hughes, it will also
obtain a monopoly in the production of SADA II detectors, eliminate its most significant
competitor, and become a dominant firm in staring IR detectors. Unless blocked, this
combination will likely result in less innovation and increases in prices paid by the DoD. 3. In addition, Hughes and Raytheon are competing with each other for the
Follow-on-to-TOW ("FOTT") new advanced antitank missile program that will replace the
current inventory of TOW antitank missiles. Raytheon is competing as the majority owner of
a joint venture with another large aerospace contractor, Lockheed Martin Corporation
("Lockheed Martin"). Having both the Hughes and Raytheon/Lockheed Martin FOTT teams
under the control of the same company likely will lessen competition for the FOTT contract.
4. This action is filed by the United States under Section 15 of the Clayton Act, as
amended, 15 U.S.C. § 25, to prevent and restrain the defendants from violating Section 7 of
the Clayton Act, as amended, 15 U.S.C. § 18.
5. Both Raytheon and Hughes design, develop, and produce IR sensing systems for
military platforms and sell those products to either platform manufacturers or DoD, an agency
of the United States. Raytheon and Hughes are engaged in interstate commerce and in
activities substantially affecting interstate commerce. The Court has subject matter jurisdiction
over this action and jurisdiction over the parties pursuant to Section 12 of the Clayton Act, 15
U.S.C. § 22, and 28 U.S.C. §§ 1331 and 1337.
6. The defendants transact business and are found within the District of Columbia. Venue is proper in this District under 15 U.S.C. § 22 and 28 U.S.C. § 1391(c).
7. Raytheon is a Delaware corporation headquartered
in Lexington, Massachusetts. Raytheon produces heavy construction equipment; refrigerators and freezers; radio and TV
broadcasting and communications equipment; semiconductors and related devices; aircraft;
guided missiles and space vehicles; search, detection and navigation systems; and engineering
services. Raytheon TI Systems ("RTIS"), a division of Raytheon, produces ground EO
systems at a facility in McKinney, Texas and IR detectors at its Expressway facility in Dallas,
Texas. Amber, a separate unit of Raytheon, produces detectors at a facility in Goleta,
California. In 1996, Raytheon reported total sales of about $12 billion. 8. General Motors is a Delaware corporation headquartered in Detroit, Michigan.
Hughes, a missile and defense electronics company, is an indirect subsidiary of General
Motors. Hughes produces ground EO systems at facilities in El Segundo, California and
LaGrange, Georgia. Hughes operates the industry's premier detector facility, Santa Barbara
Research Center ("SBRC"), in Santa Barbara, California. In 1996, Hughes reported total sales
of approximately $6 billion.
9. HE Holdings is a Delaware corporation headquartered in Detroit, Michigan. Hughes is a direct subsidiary of HE Holdings. III. TRADE AND COMMERCE
SADA II Detectors
10. An IR detector is a device that converts IR radiation into an
electrical signal. IR sensing devices detect the differences in the heat emissions between an object and its
surroundings, and can therefore distinguish among objects in the device's field of view. The
detector consists of linear or mosaic arrays of individual diodes made from semiconductor
materials such as mercury cadmium telluride ("MCT") or indium antimonide ("InSb"). The
detector is attached to a silicon chip or "readout" device that contains the circuitry which stores
the energy captured by the detector and converts this energy to a voltage signal. When mated
to the readout circuit, the detector is often called a focal plane array ("FPA"). The FPA is
typically housed in an evacuated dewar which provides cooling to the FPA. 11. The combination of an FPA, dewar cooler assembly, optics, electronics,
software, and a visual display is commonly called a FLIR (Forward Looking Infrared). FLIRs
are used in ground and airborne EO systems for surveillance and weapons fire control
purposes. FPAs are also used in heat-seeking missile guidance systems and missile warning
systems, applications for which no pictorial image is required. Since the Gulf War, great
strides have been made in IR technology, and the military is switching from older first
generation ("1st Gen.") lower performance technology to more advanced 2nd Gen. technology
12. Second generation scanning FPAs consist of detectors arranged in two
dimensions, and the array may range in size from 240 x 2 to 480 x 4. The detector is scanned
mechanically with mirrors across a field of view. Second generation scanning FPAs differ
from 1st. Gen. scanning FPAs in that the readout circuit is mounted directly to the detector
material. Second generation FPAs are photovoltaic, while 1st. Gen. FPAs are
photo conductive. Scanning FPAs are used on ground vehicles because of their ability to
cover a wide field of view. 13. Staring or third generation ("3rd Gen.") FPAs consist of a mosaic of diodes
typically square or rectangular in shape. Since they contain no scanning mechanism, staring
FPAs provide an image by staring at the scene and rapidly updating changes in the scene. Staring FPAs are lighter weight than scanning, and they can be more economical to use. Staring FPAs are produced in sizes ranging from 64 x 64 to 1024 x 1024. The largest size
currently produced for tactical applications, however, is 640 x 480.
14. FPAs are distinguished by the spe