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United Recyclers Group Questions Effectiveness of FTC and ADP Proposed Settlement of Anti-Trust Issues

11 July 1997

United Recyclers Group Questions Effectiveness of FTC and ADP Proposed Settlement of Anti-Trust Issues

    FLORENCE, Ala., July 11 -- The following was released today
by United Recyclers Group, LLC:

    The Federal Trade Commission (FTC) recently announced a proposed
settlement of its charges that Automatic Data Processing, Inc. (ADP) created a
monopoly of recyclers management information systems in April of 1995.  The
FTC alleged that ADP illegally acquired AutoInfo, Inc. assets, the only other
substantive supplier of these systems that ADP didn't already own.
    Many recyclers formed a coalition to monitor the alleged monopoly and
research alternatives for ADP's Services.  That coalition evolved into United
Recyclers Group, LLC (URG).  Recyclers question whether the proposed
settlement will re-start competition and are concerned that the settlement
could actually impede competition.  Recyclers are anxious to see meaningful
competition, after a two-year period of declining service and virtually no
improvements to the dated platforms ADP offers.
    At the heart of the monopoly and settlement is ADP's control of
"Interchange."  Interchange is a complex set of indexes that tell recyclers
which parts of cars have interchangeability with other models.  ADP continues
to control the interchange after the proposed divestiture, essentially barring
other market entrants.  Recent licensing prices proposed by ADP are almost as
high as what they charge recyclers for complete systems, including ADP
software, maintenance, support and interchange.  Potential competitors, who
can only get interchange from ADP, would be at a huge pricing disadvantage,
effectively barring their entry from entering the market place.  Recyclers
contend that any proposed solution must force ADP to divest the interchange to
an independent third party or allow unrestricted licensing of the interchange
at reasonable prices.
    For more information on URG or a copy of the FTC information, please
contact Bill Mitchell, URG Business Manager, 205-765-0100 or visit the FTC Web
 Site, http://WWW.FTC.GOV .

SOURCE  United Recyclers Group, LLC