Gemstar-TV Guide International Inc. agreed to pay a record $5.6 million fine
for working too closely with TV Guide Inc. before actually completing its
takeover of that company three years ago.
The fine is the largest ever collected for "gun-jumping" in a merger.
The Department of Justice said Gemstar and TV Guide fixed prices, divvied up
interactive-TV customers and violated waiting periods.
Gemstar bought TV Guide largely to combine their electronic cable-program
The DOJ charged that the two companies stopped competing for customers in
June 1999 while negotiating a joint venture -- talks that turned into a merger.
The companies then secretly agreed to divide up markets, share customers and set
Gemstar-TV Guide faces a separate Securities and Exchange Commission
investigation over its accounting practices.
The television industry's top news stories, analysis and blogs of the day.
Thank you for signing up to Next TV. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.