Spacex sues Boeing and Lockheed martin

[vincent]

WASHINGTON ? Space Exploration Technologies (SpaceX) is suing Boeing and Lockheed Martin in federal court for conspiring to violate antitrust laws to corner the market on U.S. government satellite launches.

The suit, filed by SpaceX attorneys Oct. 19 in the U.S. District Court for the Central District of California, comes as the Federal Trade Commission prepares to rule on Boeing and Lockheed Martin?s proposed merger of their government rocket launch operations. The proposed joint venture, United Launch Alliance, provide Lockheed Martin Atlas and Boeing Delta rockets for U.S. government launches.

SpaceX Chairman and Chief Executive Officer Elon Musk confirmed Oct. 20 that his company had filed suit against Boeing and Lockheed Martin, saying that the two companies seek to prevent companies such as his from selling launch services to the U.S. Air Force and other government customers.

SpaceX has multiple launch contracts with the U.S. Department of Defense for the Falcon 1, a small reusable rocket slated to make its launch debut before the end of the year. In recent months, SpaceX has announced that it intends to build a much larger rocket, the Falcon 9, that would compete directly with Boeing?s Delta 4 and Lockheed Martin?s Atlas 5 rockets. SpaceX says it already has a contract for the first Falcon 9 launch, awarded by an unnamed U.S. government customer that some launch analysts believe is an intelligence agency.

In court documents filed Oct. 19, SpaceX is suing Boeing and Lockheed Martin ?for violations of antitrust, unfair competition and racketeering laws.?

?Boeing and Lockheed Martin have engaged in an unlawful conspiracy to eliminate competition, and ultimately to monopolize, the government space launch business and prevent SpaceX and other potential new entrants from competing in that business,? the court documents read.

Boeing and Lockheed Martin could not immediately be reached for comment.

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[SamNeeds]

B*ll*cks do they prevent his company from selling stuff. Every company offers something to customers whether it be Government or corporation. Companies can offer better products, but at the end of the day, its up to the end user to pick the "better" product. Just because the US government didnt pick his doesnt give him the right to sue.

You watch this case get thrown out.

[vincent]

Boeing-Lockheed Rocket Merger Sparks Concern, Legal Challenge

On the eve of their deadline for ruling on the Boeing-Lockheed Martin proposal to merge their rocket manufacturing businesses, U.S. federal regulators were dealing with a flurry of developments that will complicate their task, including an anti-trust lawsuit filed by a newcomer to the launch business.

At press time Oct. 21, the U.S. Federal Trade Commission (FTC) had yet to make a decision on United Launch Alliance (ULA), which would combine production and sales of Boeing's and Lockheed Martin's respective Delta 4 and Atlas 5 rockets under one roof. The deadline for the ruling, which could be approval, disapproval or simply a formal request for more information from the companies, was Oct. 24, according to industry sources.

On Oct. 19, Space Exploration Technologies Corp. (SpaceX), the rocket startup founded by Internet tycoon Elon Musk, sued Boeing and Lockheed Martin in the U.S. District Court for the Central District of California, charging that the companies have conspired to violate anti-trust laws to corner the market on U.S. government launches. While SpaceX's concerns predate the May unveiling of plans for ULA, the lawsuit specifically seeks to block the merger.

SpaceX also wrote the FTC the week of Oct. 17 urging it to reject the merger or, failing that, at least require Boeing and Lockheed Martin to accept a consent decree relinquishing their virtual lock on Air Force launch business.

The FTC is consulting closely on the matter with the Air Force, which supports the merger. Mitch Katz, a spokesman for the FTC, said the agency does not comment on pending decisions on corporate mergers.

Boeing spokesman Dan Beck called the SpaceX lawsuit "completely without merit" and predicted the government would approve the creation of ULA.

"United Launch Alliance is going through all the appropriate FTC assessments with regard to anti-trust issues and we are confident that at the end of that process it will be approved," Beck said Oct. 21.

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