Opinion ID: 1936728
Heading Depth: 2
Heading Rank: 2

Heading: Competitive Injury

Text: Materials which, like most of those at issue here, were obtained from private parties, are not exempt from disclosure on that account. Forsham v. Harris, 445 U.S. 169, 183-187, 100 S.Ct. 977, 985-88, 63 L.Ed.2d 293 (1980); Weisberg v. U.S. Dept. of Justice, 203 U.S.App.D.C. 242, 245, 631 F.2d 824, 827 (1980). The basic purpose of the FOIA, however, was to ensure an informed citizenry, vital to the functioning of a democratic society, and the Act was not intended to function as a private discovery tool. N.L.R.B. v. Robbins Tire & Rubber Co., 437 U.S. 214, 242, 98 S.Ct. 2311, 2327, 57 L.Ed.2d 159 (1978). Accordingly, salutary legislation enacted in the public interest is not to be converted into a vehicle for commercial espionage. As one of several measures designed to inhibit misuse of the Act, the Council exempted from disclosure in § 1-1524(a)(1) [t]rade secrets and commercial or financial information obtained from outside the government, to the extent that disclosure would result in substantial harm to the competitive position of the person from whom the information was obtained. Section 1-1524(a)(1) differs from the corresponding provision in the federal FOIA, which exempts trade secrets and commercial or financial information obtained from a person and privileged or confidential. See 5 U.S.C. § 552(b)(4) (1977 and 1988 Supp.). The Post argues, and we agree, that the party seeking to invoke this exemption must show (1) that the party from whom the information was obtained faces actual competition, and (2) that disclosure will cause substantial competitive injury. CNA Financial Corp. v. Donovan, 265 U.S.App. D.C. 248, 268, 830 F.2d 1132, 1152 (1987). The affidavits which have been submitted and MBOC's explanation of the sheltered market process provide sufficient evidence of the existence of actual competition. The issue of competitive injury is more difficult. The federal provision protecting privileged and confidential information, like the other statutory exemptions, has been narrowly construed. Soucie v. David, 145 U.S.App.D.C. 144, 155, 448 F.2d 1067, 1078 (1971). The District of Columbia statute, however, explicitly focuses on the question of harm to the competitive position of the person providing the information. Moreover, we are dealing here with a situation which implicates the capacity of minority enterprises to compete with non-minority firms outside the sheltered market. Accordingly, we think the task of balancing the competing policies is an especially sensitive one.