The Department Tuesday filed a petition in the U.S. District Court for the District of Columbia asking it to find Allied in civil contempt of the decree.
At the same time, the Department also filed a settlement agreement and order, subject to court approval, that would resolve the Department’s concerns.
Under the 2000 consent decree, the Department required Allied to sell waste collection and disposal operations in 13 states, covering 18 metropolitan areas, in order to proceed with its $9.4 billion acquisition of BFI.
Allied is also required to seek the approval of the Justice Department's Antitrust Division before acquiring waste collection and disposal assets in any of the geographic areas covered under the decree, provided certain minimum dollar threshold amounts are met.
According to the Department’s petition, Allied violated this provision of the decree by acquiring a set of waste collection assets in the Chicago area in January 2004 from Homewood Disposal Services Inc. without first obtaining Department approval. The settlement agreement resolves all Department concerns arising from the alleged violation.
The $125,000 payment to the United States includes reimbursement to the government for the cost of its investigation into Allied’s alleged violations.
'The Antitrust Division takes non-compliance with court decrees seriously,' said Thomas Barnett, assistant attorney general in charge of the Department’s Antitrust Division. 'The rule of law requires companies to abide by a court’s lawful orders.'
Allied Waste Industries Inc., headquartered in Scottsdale, Arizona, is the second largest non-hazardous solid waste management company in the United States, with annual revenues of $6 billion.