%PDF-1.2 %忏嫌 10 0 obj << /Length 11 0 R >> stream BT 101.28 708.48 TD 0 0 0 rg /F0 12 Tf 0 Tc 0 Tw (Analysis of the Complaint and Proposed Consent Order to Aid Public Comment) Tj 166.8 -42.48 TD (I. Introduction) Tj -160.08 -13.92 TD /F1 12 Tf (The 麻豆传媒 Trade Commission $"Commission"$ has accepted, subject to final approval, an) Tj -36 -14.16 TD (Agreement Containing Consent Orders $"Consent Agreement"$ from Computer Sciences) Tj 0 -14.16 TD (Corporation $) Tj -1.68 Tc (\223) Tj 0 Tc (CSC) Tj -1.44 Tc (\224) Tj 0 Tc ($ and Mynd Corporation $) Tj -0.0821 Tc 0.0821 Tw (\223Mynd\224$ $collectively "respondents"$. The) Tj T* 0 Tc 0 Tw (Consent Agreement is intended to resolve anticompetitive effects stemming from CSC's proposed) Tj T* (acquisition of the outstanding shares of Mynd. The Consent Agreement includes a proposed) Tj T* (Decision and Order $the "Order"$ that would require CSC to divest Mynd) Tj -2.88 Tc (\222) Tj 0 Tc (s claims assessment) Tj T* (systems business to Insurance Services Office, Incorporated $) Tj -1.68 Tc (\223) Tj 0 Tc (ISO) Tj -1.44 Tc (\224) Tj 0 Tc ($. Mynd develops and sells a) Tj T* (claims assessment system known as Claims Outcome Advisor $) Tj -1.68 Tc (\223) Tj 0 Tc (COA) Tj -1.44 Tc (\224) Tj 0 Tc ($. The Consent Agreement) Tj T* (also includes an Order to Maintain Assets that requires respondents to preserve the assets they are) Tj T* (required to divest as a viable, competitive, and ongoing operation until the divestiture is achieved.) Tj 36 -28.32 TD (The Order, if finally issued by the Commission, would settle charges that CSC) Tj -2.88 Tc (\222) Tj 0 Tc (s proposed) Tj -36 -14.16 TD (acquisition of Mynd may have substantially lessened competition in the United States market for) Tj 0 -14.16 TD (claims assessment systems. The Commission has reason to believe that CSC's proposed) Tj T* (acquisition of Mynd would have violated Section 7 of the Clayton Act and Section 5 of the) Tj T* (麻豆传媒 Trade Commission Act. The proposed complaint, described below, relates the basis for) Tj T* (this belief.) Tj 94.56 -28.56 TD /F0 12 Tf (II. Description of the Parties and the Proposed Merger) Tj -58.56 -28.08 TD /F1 12 Tf (CSC, headquartered in El Segundo, California, is a large computer-services provider,) Tj -36 -14.16 TD (which also sells vertical software applications in the financial services industries. CSC) Tj -2.88 Tc (\222) Tj 0 Tc (s Financial) Tj 0 -14.16 TD (Services Group $) Tj -1.68 Tc (\223) Tj 0 Tc (FSG) Tj -1.44 Tc (\224) Tj 0 Tc ($, headquartered in Austin, Texas, provides consulting and support) Tj T* (services along with application software to insurance companies, banking, consumer finance) Tj T* (companies, and investment companies.) Tj 36 -28.32 TD (Mynd, headquartered in Columbia, South Carolina, provides consulting and services and) Tj -36 -14.16 TD (packaged software solutions to the insurance and other financial services industries.) Tj 36 -28.32 TD (Pursuant to an agreement, CSC will make a $16 per share cash tender offer for) Tj -36 -14.16 TD (outstanding Mynd shares. Mynd will then become a wholly-owned subsidiary of CSC.) Tj 160.08 -28.56 TD /F0 12 Tf (III. The Proposed Complaint) Tj -124.08 -28.08 TD /F1 12 Tf (According to the Commission's proposed complaint, the relevant line of commerce in) Tj -36 -14.16 TD (which to analyze the effects of CSC's proposed acquisition of Mynd is the provision of claims) Tj 0 -14.16 TD (assessment systems, and the relevant geographic market is the United States. Claims assessment) Tj T* (systems are computer software and other intellectual property used by insurance companies and) Tj T* (others to evaluate appropriate payments for claims for bodily injury or to evaluate return-to-work) Tj T* (plans in workers compensation claims. Claims assessment systems are designed to aid claims) Tj T* (adjusters by providing a consistent methodology for analyzing information that an adjuster would) Tj ET endstream endobj 11 0 obj 3986 endobj 4 0 obj << /Type /Page /Parent 5 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R >> /ProcSet 2 0 R >> /Contents 10 0 R >> endobj 13 0 obj << /Length 14 0 R >> stream BT 72 708.72 TD 0 0 0 rg /F1 12 Tf 0 Tc 0 Tw (take into account in assessing the appropriate settlement values for claims. Mynd sells the claims) Tj 0 -14.16 TD (assessment system known as COA, and CSC sells the claims assessment system known as) Tj T* (Colossus. The proposed complaint alleges that the market for claims assessment systems in the) Tj T* (United States is highly concentrated and that CSC and Mynd are the only significant competitors) Tj T* (in the provision of claims assessment systems. The proposed complaint alleges that the proposed) Tj T* (acquisition of Mynd by CSC would create a monopoly or near monopoly in the market for claims) Tj T* (assessment systems.) Tj 36 -28.32 TD (The proposed complaint also alleges that entry into the relevant market would not be) Tj -36 -14.16 TD (timely, likely, or sufficient to deter or offset adverse effects of the acquisition on competition.) Tj 0 -14.16 TD (Entry is difficult in this market because the time and expense necessary to develop software) Tj T* (systems such as these are great. Claims assessment systems involve the use of expert-system) Tj T* (technology, which is a set of computerized methods for exploiting information drawn from) Tj T* (relevant knowledge domains through rules or algorithms so as to assist in the solution of real-) Tj T* (world problems, such as claims assessment. Entry is difficult in this market because of the time ) Tj T* (and expense necessary for finding and choosing the appropriate domain information, choosing or) Tj T* (developing the appropriate rules or algorithms, and integrating the expert-system technology into) Tj T* (a computing platform that is sufficiently robust, scalable, and stable while incorporating a domain-) Tj T* (appropriate user interface.) Tj 36 -28.32 TD (The proposed complaint alleges that CSC) Tj -2.88 Tc (\222) Tj 0 Tc (s proposed acquisition of Mynd would eliminate) Tj -36 -14.16 TD (actual, direct, and substantial competition between CSC and Mynd. Elimination of this) Tj 0 -14.16 TD (competition would likely result in increased prices for claims assessment systems and reduced) Tj T* (innovation as a result of delayed or reduced product development.) Tj 92.16 -28.56 TD /F0 12 Tf (IV. Terms of the Agreement Containing Consent Order) Tj -56.16 -28.08 TD /F1 12 Tf (The proposed Order is designed to remedy the anticompetitive effects of the acquisition in) Tj -36 -14.16 TD (the United States market for claims assessment systems, as alleged in the complaint, by requiring) Tj 0 -14.16 TD (the divestiture to ISO of Mynd) Tj -2.88 Tc (\222) Tj 0 Tc (s claims assessment business. The Order would also require) Tj T* (respondents to dismiss with prejudice all of CSC) Tj -2.88 Tc (\222) Tj 0 Tc (s intellectual-property litigation claims against) Tj T* (Neuronworks, the original developers of COA, so as to enable Neuronworks to perform COA-) Tj T* (related consulting or other work in conjunction with ISO or another acquirer. Further, the Order) Tj T* (would require respondents to release, hold harmless, and indemnify ISO or other acquirer from) Tj T* (liability for any past, current, or future claims arising out of Mynd) Tj -2.88 Tc (\222) Tj 0 Tc (s and Neuronworks) Tj -2.88 Tc (\222) Tj 0 Tc (s acts prior) Tj T* (to the divestiture date related to COA. The purpose of these provisions is to allow the acquirer to) Tj T* (compete in the market by selling COA free from claims by CSC of intellectual property) Tj T* (infringement. The proposed Order would also require respondents to divest other assets related) Tj T* (to Mynd) Tj -2.88 Tc (\222) Tj 0 Tc (s claims assessment systems business, including customer lists, contracts, intellectual) Tj T* (property, and other intangible assets so as to put ISO or another acquirer into a position to) Tj T* (compete as soon as possible following the divestiture.) Tj 36 -28.32 TD (ISO, based in New York City, is a leading vendor of statistical, actuarial, and underwriting) Tj -36 -14.16 TD (information for and about the property and casualty insurance industry. ISO uses these statistics) Tj 0 -14.16 TD -0.009 Tc 0.009 Tw (to develop advisory prospective loss costs \226 projections of average future claim payments and) Tj ET endstream endobj 14 0 obj 4285 endobj 12 0 obj << /Type /Page /Parent 5 0 R /Resources << /Font << /F0 6 0 R /F1 8 0 R >> /ProcSet 2 0 R >> /Contents 13 0 R >> endobj 16 0 obj << /Length 17 0 R >> stream BT 72 708.72 TD 0 0 0 rg /F1 12 Tf 0 Tc 0 Tw (loss adjustment expenses, for various lines of insurance and classifications of policy holders. ) Tj 0 -14.16 TD (Insurance companies use these loss costs to develop their own independent rates for their) Tj T* (insurance policies. ISO also provides aggregate insurance statistics to state regulators. ) Tj 36 -28.32 TD (If the Commission, at the time that it accepts the proposed Order for public comment,) Tj -36 -14.16 TD (notifies respondents that it does not approve of the proposed divestiture to ISO, or the manner of) Tj 0 -14.16 TD (the divestiture, the proposed Order provides that respondents would have three months to divest) Tj T* (Mynd) Tj -2.88 Tc (\222) Tj 0 Tc (s claims assessment business to a different Commission-approved acquirer. If respondents) Tj T* (did not complete the divestiture in that period, a trustee would be appointed who, upon) Tj T* (Commission approval, would have the authority to divest Mynd) Tj -2.88 Tc (\222) Tj 0 Tc (s claims assessment business to a) Tj T* (Commission-approved acquirer.) Tj 36 -28.32 TD (The proposed Order to Maintain Assets that is also included in the Consent Agreement ) Tj -36 -14.16 TD (requires that respondents preserve the Mynd assets they are required to divest as a viable and) Tj 0 -14.16 TD (competitive operation and conduct the Mynd claims assessment business in the ordinary course of) Tj T* (business until those Mynd assets are transferred to the Commission-approved acquirer.) Tj 36 -28.32 TD (The Consent Agreement requires respondents to provide the Commission with an initial) Tj -36 -14.16 TD (report setting forth in detail the manner in which respondents will comply with the provisions) Tj 0 -14.16 TD (relating to the divestiture of assets. The proposed Order further requires respondents to provide) Tj T* (the Commission with a report of compliance with the Order within thirty $30$ days following the) Tj T* (date the Order becomes final and every thirty $30$ days thereafter until they have complied with) Tj T* (the terms of the Order.) Tj 140.64 -28.56 TD /F0 12 Tf (V. Opportunity for Public Comment) Tj -104.64 -28.08 TD /F1 12 Tf (The proposed Order has been placed on the public record for thirty days for receipt of) Tj -36 -14.16 TD (comments by interested persons. Comments received during this period will become part of the) Tj 0 -14.16 TD (public record. After thirty days, the Commission will again review the proposed Order and the) Tj T* (comments received and will decide whether it should withdraw from the proposed Order or make) Tj T* (it final. By accepting the proposed Order subject to final approval, the Commission anticipates) Tj T* (that the competitive problems alleged in the proposed complaint will be resolved. The purpose of) Tj T* (this analysis is to invite public comment on the proposed Order, including the proposed) Tj T* (divestiture, to aid the Commission in its determination of whether to make the proposed Order) Tj T* (final. This analysis is not intended to constitute an official interpretation of the proposed Order,) Tj T* (nor is it intended to modify the terms of the proposed Order in any way.) 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