WASHINGTON, D.C. (Legal Newsline) – The U.S. Justice Department is suing to prevent the merger of two of the nation's largest hard copy record management services.
The Justice Department Antitrust Division filed a lawsuit March 31 in the U.S. District Court for the District of Columbia against Iron Mountain Inc. and Recall Holdings LTD, alleging violation of of the Clayton Act.
According to the complaint, the merger would have an adverse effect on the record managing service market such as competition being eliminated or substantially lessened, prices increasing, and quality of service being lowered.
The suit says the defendants are the two largest providers of hard copy record management services in the United States and in 15 metropolitan areas across the nation.
Both defendants have competed against each other aggressively, the lawsuit states, resulting in lower prices and a higher quality of service. The U.S. government alleges the merger is a step toward monopolization of RMS. The merger plan came about, despite a settlement in which the defendants allegedly agreed to divest records management assets in the 15 metropolitan areas where they are two of the three largest providers, the suit says.
The U.S. government asks the court to declare the acquisition unlawful and in violation of Section 7 of the Clayton Act, to permanently enjoin and restrain the defendants from carrying out the acquisition and award the plaintiff the cost of the suit and any other reward deemed just.
The government is represented by attorneys William Baer and Renata Hesse of the Justice Department, and Patricia Brink, director of civil enforcement.
U.S. District Court for the District of Columbia Case number 1:16-cv-00595-APM