Luria Brothers and Company, Inc

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IN THE MATTER OF LURIA BROTHERS AND COMPANY, INC., ET AL SET ASIDE ORDER IN REGARD TO ALLEGgn VIOLATION OF THE FEDERAL TRADE COMMISSION ACT AND SEC. 7 OF THE CLAYTON ACT Docket 6156. Order, Feb. 1963-Set Aside Order, Peb. , 1985 After considering respondent' s petition to reopen the matter and set aside the Commission s order of February 13, 1963 (62 F. C. 243), together with public comments and other relevant information, the Commission found that the order, which among" other things, barred the firm from entering into exclusive supplier arrangements with steel mills and receiving preferential treatment as a scrap metal supplier, no longer serves the public interest. The Commission held that in view of the present characteristics of the ferrous scrap industry, and respondent' present inability to exclude competitors through the exercise of market power, the order no longer serves any procompetitive purpose and may impede Luria s ability to compete et1ectively for the business of scrap consumers that desire exclusive supply arrangements. Accordingly, the Order reopens the matter and sets aside the Commission s order of February 1 , 1963 as it applies to respondent Luria. ORDER REOPENING AND SETTING ASIDE THE ORDER ISSUED FEBRUARY 13, 1963 By petition fied on September 19, 1984, Luria Brothers & Company, Inc. (hereafter "Luria ) requests that the Commission reopen the proceeding in Docket No. 6156 and set aside the order therein. Upon consideration of Luria s petition, the public comments, and other relevant information, the Commission now finds that the public interest warrants reopening the proceeding and setting aside the order as to Luria.

The record describes an industry in which Luria s use of exclusive arrangements to supply purchased iron and steel scrap to any foreign or domestic scrap consumer, including respondent mills, would have no significant anticompetitive effects. Luria s shares in the national and regional ferrous scrap markets have declined steadily since the Commission issued its complaint in. this matter. In contrast to its previous dominance in the export of iron and steel scrap, Luria is now only minimally involved in that aspect of the scrap business. Moreover, concentration in the industry has decreased significantly as new firms have entered the market, thus demonstrating the absence of natural or artificial barriers to entry.

In view of the present characteristics of the ferrous scrap industry, and Luria s inability to exclude competitors through the exercise of rkpt, nowpr thp ornpr now c;prvpc; no nrOf"nmnptitivp nnrnoc;p !'n LURIA BROTHERS AND CO., INC., ET AL. 193 192 Set Aside Order may impede Luria s ability to compete effectively for the business of scrap consumers that desire exclusive supply arrangements. As a result, we conclude that the order no longer is in the public interest. However, the Commission will not be precluded from taking enforcement action concerning the practices that are the subject ofthis order when the Commission has reason to believe they violate the law. Accordingly, It is ordered That this matter be and it hereby is reopened, and that the Commission s February 13, 1963 order be and it hereby is set aside as it applies to respondent Luria.

Commissioner Bailey concurred in the result. , , Set Aside Order 105 F.