DOJ settles with Mathworks

The US DOJ has reached a settlement with The MathWorks requiring it to offer for sale the MATRIXx software it is distributing under an agreement with California-based Wind River Systems.

The US Department of Justice has reached a settlement with The MathWorks requiring the MA-based company to offer for sale the MATRIXx software it is distributing under an agreement with California-based Wind River Systems.

The proposed settlement, if approved by a court, would settle the Department’s lawsuit alleging that the companies illegally allocated the markets for software used to design dynamic control systems. The proposed settlement was filed in the US District Court in Alexandria, VA.

On June 21, 2002, the Department filed a civil antitrust lawsuit challenging the agreement between The MathWorks and Wind River as a violation of Section 1 of the Sherman Act. According to the complaint, in February 2001, The MathWorks and Wind River, which were head-to-head competitors for the development and sale of dynamic control system design software tools, entered into an agreement that gave The MathWorks the exclusive right to sell Wind River’s MATRIXx products and required Wind River to stop its own development and marketing.

Along with the complaint, the Department and Wind River filed a proposed consent decree that would settle the case against Wind River on the condition that it fully co-operates with any court order requiring the divestiture of the MATRIXx product line. The lawsuit, however, continued against The MathWorks. The proposed consent decree, however, would now resolve the case against The MathWorks.

In its lawsuit against The MathWorks, the Department sought a judicially-enforced sale of the MATRIXx product line. The proposed settlement ensures that an independent trustee will direct the attempted sale under court supervision.

‘This settlement is a fair resolution that provides the best opportunity for the MATRIXx assets to restore competition in the market for dynamic control system software,’ said Charles A. James, Assistant Attorney General of the Department’s Antitrust Division.