ASA News Release
Contact:

Clarence Mills
(202) 543-1440
c.mills@att.net
For Release:


Immediate
News Bulletin PR-68
November 26, 2008

FTC Issues Complaint Against CCC, Mitchell Merger

WASHINGTON, D.C., Nov. 26, 2008 –The Federal Trade Commission (FTC) has issued a complaint against the merger of CCC Information Services Inc. and Mitchell International Inc., claiming that the merger would obstruct competition in the market for electronic systems used in estimating damages done in the collision industry. These include estimates for the cost of collision repairs, also known as "estimatics," and software systems used to value totaled vehicles, or total loss valuation (TLV) systems.

The FTC claims that the merger of CCC Information Services and Mitchell International would harm insurers, repair shops and car owners in the United States because of the reduction of competition in this already highly concentrated market, from three to two competing corporations. Audatex is the only other competitor. According to the FTC, prices would increase and innovation would decrease for consumers as a result.

The FTC voted 3-0 in favor of issuing a complaint. The Commission has also authorized its staff to file a complaint in federal district court.

According to the FTC, "Issuing a complaint is the first step in the administrative trial process. CCC and Mitchell will be offered FTC's 'Fast Track' administrative trial procedure. The Commissioners are committed, subject to the bounds of reasonableness and fairness, to a just and expeditious resolution of any potential appeal that may be taken to the full Commission. Should there be an appeal, the Commissioners commit to make every effort to issue an appellate decision no later than 90 days after receiving a notice of appeal if there is no cross-appeal, or 120 days if there is a cross-appeal."

Mitchell International and CCC Information Services are longtime Automotive Service Association member benefit providers.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

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