Xerox Corporation

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IN THE MATTER OF XEROX CORPORATION MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Aug. , 1983 Docket 8909. Consent Order July 1975-Modifying Order, This order reopens the proceeding and modifies paragraph XVI of the Commission order issued on July 29, 1975 (86 F. C. 364 mudified 91 F. C. 728 modified further 100 F.T.C. 455), by deleting provisions that prohibited the company from promoting or taking orders for the sale or lease of any new offce copier more than 3 months before its commercial availability. 1975 ORDER MODIFYING CEASE AND DESIST ORDER ISSUED ON JULY 25, By a petition fied on April 22, 1983, respondent Xerox Corporation Xerox ) requests that the Commission reopen the proceeding in Docket No. 8909 and modify Paragraph XVI ofthe order issued in this case to terminate approximately two years early its prohibition against Xerox promoting new copiers more than three months before their commercial availability. Paragraph XVI presently is scheduled to expire on July 29, 1985. Pursuant to Section 2.51 of the Commission s Rules of Practice, the petition was placed on the public record for comments. No comments were received.

Upon consideration of Xerox s request and supporting materials and other relevant information, the Commission finds that the public interest warrants reopening and modification of the order. In view of the changes that have taken place in the United States copier industry over the last decade, including the entry of numerous new competitors and Xerox s diminished market position, the order prohibition against advance product announcement and promotion by Xerox is no longer needed to assure competition in the United States copier market. Advance new product announcements by Xerox, in light of these industry changes, no longer pose any danger of allowing Xerox to gain or perpetuate a monopoly or otherwise limit competition in the relevant market. Moreover, continuation of the order s prohibition against advance product announcement and promotion by Xerox appears to hamper Xerox s ability to compete and consequently, reduces interbrand competition and deprives buyers of the opportunity to make informed decisions concerning their copier needs.

Accordingly, It is ordered, That this matter be, and it hereby is, reopened and lids FEDERAL TRADE COMMISSION DECISIONS Modifying Order I02 F. that Paragraph XVI ofthe Commission s order be modified to read as follows:

XVI It is further ordered That during the period ending 10 years after the date of issuance of this Order at the time Xerox announces that it wil take orders for the lease of an office copier in the United States it shall also announce the selling price of such office copier. 1109 Complaint