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Antitrust Concerns

daemon@ATHENA.MIT.EDU (nschmidt@MIT.EDU)
Fri Oct 29 15:41:37 1993

From: nschmidt@MIT.EDU
To: resnet-forum@MIT.EDU
Date: Fri, 29 Oct 93 15:04:51 EDT


In response to the recent conversation that has been going on
regarding charging students to defray the cost of providing network
connections, one of our members sent the following message to me:

>I am prompted by one of the first messages sent out on the net to
>raise with you my concern that certain forms of communication and
>information sharing in this area may risk violation of antitrust
>law as recently defined by the Justice Department and the Consent
>Decree signed by members of the Ivy League.  Specifically, I believe
>it may be inappropriate to share information regarding fee structures,
>especially planned or proposed fee structures, for services in the
>computing area, since some of these fees may be included in the general
>price structure of certain institutions.  MIT needs no warning regarding
>the seriousness of this matter (nor does Wesleyan, which as you may know
>has also been under investigation by the Justice Department).  But other
>institutions are not as aware of this matter and may not be sensitive
>to its implications.  It seems to me that legal advice should be sought
>on what is and is not in bounds for further communication on the net.
>Strictly speaking, it is not illegal to share historical information
>about price and charges, though even in this arena discretion is advisable.
>But I think any information about prospective charges could be construed
>as anti-competitive in nature, especially as these charges are related
>to the price of an undergraduate education.
>
>I do not mean to be an alarmist about this, but we have learned the
>hard way that this area is one we cannot afford to be careless about.
>You may wish to discuss this with counsel at MIT.
>
>Sincerely,
>
>
>William Adams
>Vice President and Secretary of the University
>Wesleyan University

I checked with our own Vice President for Information Systems, and his
opinion is as follows:

>Naomi   -----   Adams is correct.  It is in fact illegal to share
>                information about proposed fees and fee increases.

He suggested that readers of this list limit their remarks to historic
fee information.  I have also asked our legal counsel here at MIT to
expand on this, giving their more informed point of view.  I will post
a message containing more information as soon as I get it from them.

				Naomi Schmidt

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