DOJ Files Antitrust Suit Against Tech Firm
The Justice Department on Thursday filed a civil antitrust lawsuit against Microsemi Corp. alleging that through its acquisition of Semicoa assets, the firm eliminated or reduced competition in the development, manufacture and sale of certain semiconductor devices used in military and space programs essential to U.S. security. The department alleges that as a result of the transaction, prices for these products have increased and there is likely to be lower quality service. The complaint asks that a court require the Irvine, Calif.-based company to undo the transaction by selling off the assets it acquired in July.
Government lawyers argued that the acquisition created a monopoly for small signal transistors used by the Defense Department and reduced from three to two the number of likely competitors for ultrafast recovery rectifier diodes also used by the military. Transistors and diodes are semiconductor devices used to control the flow of electric current. While consolidation in the defense industry in certain circumstances may be beneficial, this transaction was not, Acting Assistant Attorney General Deborah Garza said in a statement.
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