82_FR_40318 82 FR 40155 - National Association of Animal Breeders, Inc.; Analysis To Aid Public Comment

82 FR 40155 - National Association of Animal Breeders, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 163 (August 24, 2017)

Page Range40155-40157
FR Document2017-17880

The consent agreement in this matter settles alleged violations of federal law prohibiting unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the complaint and the terms of the consent order-- embodied in the consent agreement--that would settle these allegations.

Federal Register, Volume 82 Issue 163 (Thursday, August 24, 2017)
[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)]
[Notices]
[Pages 40155-40157]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17880]


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FEDERAL TRADE COMMISSION

[File No. 151 0138]


National Association of Animal Breeders, Inc.; Analysis To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair methods of competition. 
The attached Analysis to Aid Public Comment describes both the 
allegations in the complaint and the terms of the consent order--
embodied in the consent agreement--that would settle these allegations.

DATES: Comments must be received on or before September 19, 2017.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write: ``In the Matter of 
National Association of Animal Breeders, Inc. File No. 1510138'' on 
your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/cattleartificialinseminationconsent by 
following the instructions on the web-based form. If you prefer to file 
your comment on paper, write ``In the Matter of National Association of 
Animal Breeders, Inc. File No. 1510138'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Armando Irizarry (202-326-2964), 
Bureau of Competition, 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing a consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement, and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for August 18, 2017), on the World Wide Web, at 
https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before September 19, 
2017. Write ``In the Matter of National Association of Animal Breeders, 
Inc. File No. 1510138'' on your comment. Your comment--including your 
name and your state--will be placed on the public record of this 
proceeding, including, to the extent practicable, on the public 
Commission Web site, at https://www.ftc.gov/policy/public-comments.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/cattleartificialinseminationconsent by following the instructions 
on the web-based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that 
Web site.
    If you prefer to file your comment on paper, write ``In the Matter 
of National

[[Page 40156]]

Association of Animal Breeders, Inc. File No. 1510138'' on your comment 
and on the envelope, and mail your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex D), Washington, DC. 20024. If possible, submit your 
paper comment to the Commission by courier or overnight service.
    Because your comment will be placed on the publicly accessible FTC 
Web site at https://www.ftc.gov, you are solely responsible for making 
sure that your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else's Social 
Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure that your comment does not include 
any sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 
16 CFR 4.10(a)(2)--including in particular competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted on the public FTC Web site--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC Web site, 
unless you submit a confidentiality request that meets the requirements 
for such treatment under FTC Rule 4.9(c), and the General Counsel 
grants that request.
    Visit the FTC Web site to read this Notice and the news release 
describing it. The FTC Act and other laws that the Commission 
administers permit the collection of public comments to consider and 
use in this proceeding, as appropriate. The Commission will consider 
all timely and responsive public comments that it receives on or before 
September 19, 2017. For information on the Commission's privacy policy, 
including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Agreement Containing Consent Order To Aid Public Comment

    The Federal Trade Commission (``Commission'') has accepted, subject 
to final approval, an Agreement Containing Consent Order (``Consent 
Agreement'') from the National Association of Animal Breeders, Inc. 
(``NAAB''). NAAB is a trade association of cattle artificial 
insemination firms.
    Dairy production in the United States is dependent on volume from 
more than 9.3 million cows, the market for which relies on services 
provided by NAAB member breeders. In 2008, the U.S. Department of 
Agriculture, with partial funding from the NAAB through a Cooperative 
Research and Development Agreement (``CRADA''), developed a new 
technology that is the best indicator of genetic merit of dairy bulls 
for use in artificial insemination in so far as yielding higher 
producing dairy cows. The Commission's complaint (``Complaint'') 
alleges that NAAB violated Section 5 of the Federal Trade Commission 
Act, as amended, 15 U.S.C. 45, by restraining competition among its 
regular members in the use of this new technology, which dampened 
competition in the market for dairy bulls used for semen production.
    This matter reaffirms the longstanding rule that trade associations 
composed of members that compete among themselves, while typically 
serving important and procompetitive functions, must not adopt rules or 
regulations that unreasonably limit competition among their members. It 
also illustrates that industry groups that obtain valuable and unique 
technology from the government may not establish rules or regulations 
regarding that technology that unreasonably restrain competition.
    The Consent Agreement has been placed on the public record for 30 
days for receipt of comments from interested members of the public. 
Comments received during this period will become part of the public 
record. After 30 days, the Commission will review the Consent Agreement 
and comments received, and decide whether it should withdraw, modify, 
or make the Consent Agreement final.
    The Consent Agreement is for settlement purposes only and does not 
constitute an admission by NAAB that it has violated the law as alleged 
in the Complaint or that the facts alleged in the Complaint, other than 
jurisdictional facts, are true.
    The purpose of this Analysis to Aid Public Comment is to invite and 
facilitate public comment. It is not intended to constitute an official 
interpretation of the proposed Consent Agreement and the accompanying 
Proposed Order, or in any way modify their terms.

I. The Complaint

    The Complaint makes the following allegations.
    NAAB is a non-profit corporation with about 24 regular members that 
compete among themselves and with others in the business of collecting, 
processing, freezing, marketing or selling dairy cattle semen for 
artificial insemination. NAAB's members buy dairy bulls from dairy 
farmers and breeders to produce semen for artificial insemination. NAAB 
members together account for more than 90 percent of dairy cattle semen 
sales in the United States.
    In September 2006, NAAB entered into a CRADA with the United States 
Department of Agriculture (``USDA'') to cooperate with a USDA 
laboratory in a project for developing the genomic testing technology 
described above. The CRADA granted NAAB exclusive access to the results 
of the CRADA project until February 2013. The CRADA did not restrain in 
any way the ability of NAAB or its members to use the new technology or 
to sell access to it, nor did it authorize NAAB or its members to adopt 
rules that restrain in any way the ability of its members to use the 
new technology or to sell access to it.
    By April 2008, the USDA laboratory had developed the new 
technology, known as the Genomic Predicted Transmitting Ability 
(``GPTA''), which analyzes the genetics of a dairy bull to predict the 
ability of the bull to transmit commercially important traits, such as 
milk yield, to its daughters. This new technology is superior to the 
traditional method of evaluating dairy bulls for semen production, and 
it became the best indicator of a dairy bull's

[[Page 40157]]

commercial value for transmitting genetic traits.
    In October 2008, more than two years after entering into the CRADA, 
NAAB approved a resolution that regulated its members' access to the 
new technology during the exclusivity period granted by the CRADA 
(through February 2013). NAAB acted as a combination of its members 
when it approved the resolution.
    The resolution required that for a NAAB member to obtain the GPTA 
of a dairy bull, the Member had to have one of the following interests 
in the bull: (a) Own the bull, (b) have an agreement to purchase at 
least a 30 percent interest in the bull, (c) have a lease on the bull, 
or (d) have an exclusive marketing agreement for the bull. The USDA 
laboratory was the only source of GPTAs during the exclusivity period.
    The Complaint alleges that NAAB's resolution harmed competition by 
diminishing competition for dairy bulls used for semen production. 
First, it impeded the development of a market in which dairy farmers 
and breeders could pay NAAB members to obtain GPTAs for their dairy 
bulls. Second, the resolution limited NAAB members from obtaining the 
GPTA of bulls in which they did not already have a financial interest. 
Access to a bull's GPTA prior to buying or selling it would tend to 
increase competition and drive the price of the bull toward a value 
that more accurately reflects its ability to yield higher producing 
dairy cows. After the exclusivity period expired in February 2013, 
GPTAs became available for a fee through an industry organization.
    The Complaint alleges that the purpose, effect, tendency or 
capacity of the resolution was to restrain competition unreasonably 
among NAAB's Members, and that this conduct injured dairy farmers and 
breeders by depriving them of the benefits of free and open 
competition. Therefore, the resolution constitutes an unfair method of 
competition that violates Section 5 of the Federal Trade Commission 
Act.

II. The Proposed Order

    The Proposed Order has the following substantive provisions. 
Paragraph II requires NAAB to cease and desist from restraining the 
ability of its members to obtain, disclose, provide, use or sell any 
technology or information resulting from research projects conducted 
by, or pursuant to, an agreement to which NAAB is a party. The Proposed 
Order also prohibits NAAB from restraining price-related competition 
among its members relating to the sale or acquisition of bulls or bull 
semen.
    A proviso to Paragraph II specifies that the Proposed Order does 
not prohibit NAAB from engaging in any conduct that is reasonably 
necessary to achieve procompetitive benefits or efficiencies relating 
to NAAB's operation or to the operation of its members, provided that 
such benefits or efficiencies likely would offset the anticompetitive 
harms.
    Paragraph III requires that, for five years, NAAB notify the 
Commission if it adopts or modifies any regulation that restrains the 
ability of its members to obtain disclose, provide, sell or use any 
technology or information resulting from any research project.
    Paragraph V of the Proposed Order requires that NAAB implement an 
antitrust compliance program to ensure compliance with the Proposed 
Order and the antitrust laws.
    Paragraphs IV and VI-VIII of the Proposed Order impose certain 
standard reporting and compliance requirements on NAAB.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-17880 Filed 8-23-17; 8:45 am]
 BILLING CODE 6750-01-P



                                                                           Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices                                          40155

                                               more, and any BHC identified as a G–                    its assertion that disclosure would likely            Breeders, Inc. File No. 1510138’’ on
                                               SIB based on its method 1 score                         cause substantial competitive harm. To                your comment and on the envelope, and
                                               calculated as of December 31 of the                     the extent confidential data collected                mail your comment to the following
                                               previous calendar year 2 that does not                  under the FR Y–15 will be used for                    address: Federal Trade Commission,
                                               otherwise meet the consolidated assets                  supervisory purposes, it may be exempt                Office of the Secretary, 600
                                               threshold for BHCs. The Board uses the                  from disclosure under Exemption 8 of                  Pennsylvania Avenue NW., Suite CC–
                                               FR Y–15 data to monitor, on an ongoing                  FOIA, (5 U.S.C. 552(b)(8)).                           5610 (Annex D), Washington, DC 20580,
                                               basis, the systemic risk profile of                        Consultation Outside the Agency: The               or deliver your comment to the
                                               institutions which are subject to                       FR Y–15 was derived from data                         following address: Federal Trade
                                               enhanced prudential standards under                     collections developed by the Basel                    Commission, Office of the Secretary,
                                               section 165 of the Dodd-Frank Wall                      Committee on Banking Supervision                      Constitution Center, 400 7th Street SW.,
                                               Street Reform and Consumer Protection                   (BCBS) to assess the global systemic                  5th Floor, Suite 5610 (Annex D),
                                               Act (Dodd-Frank Act).3 In addition, the                 importance of banks. The BCBS revised                 Washington, DC 20024.
                                               FR Y–15 is used to (i) facilitate the                   its data collations in January 2017 after             FOR FURTHER INFORMATION CONTACT:
                                               implementation of the surcharge for G–                  consultation with representatives from                Armando Irizarry (202–326–2964),
                                               SIBs, (ii) identify other institutions                  numerous national supervisory                         Bureau of Competition, 600
                                               which may present significant systemic                  authorities, including the Board.5 Many               Pennsylvania Avenue NW., Washington,
                                               risk, and (iii) analyze the systemic risk               of the proposed revisions to the FR Y–                DC 20580.
                                               implications of proposed mergers and                    15 would correspond to changes made                   SUPPLEMENTARY INFORMATION: Pursuant
                                               acquisitions.                                           to the BCBS data collection.                          to Section 6(f) of the Federal Trade
                                                  Proposed Revisions: The FR Y–15                        Board of Governors of the Federal Reserve           Commission Act, 15 U.S.C. 46(f), and
                                               would be revised by (1) including                       System, August 21, 2017.                              FTC Rule 2.34, 16 CFR 2.34, notice is
                                               Mexican pesos in total payments                         Ann E. Misback,                                       hereby given that the above-captioned
                                               activity on Schedule C and removing it                  Secretary of the Board.                               consent agreement containing a consent
                                               from the Memorandum items; (2) adding                                                                         order to cease and desist, having been
                                                                                                       [FR Doc. 2017–17939 Filed 8–23–17; 8:45 am]
                                               securities brokers to the definition of                                                                       filed with and accepted, subject to final
                                                                                                       BILLING CODE 6210–01–P
                                               financial institutions in the instructions                                                                    approval, by the Commission, has been
                                               for Schedule B; (3) expressly including                                                                       placed on the public record for a period
                                               all cleared derivative transactions in                                                                        of thirty (30) days. The following
                                               Schedule D, item 1; (4) specifying how                  FEDERAL TRADE COMMISSION
                                                                                                                                                             Analysis to Aid Public Comment
                                               certain cleared derivatives transactions                [File No. 151 0138]                                   describes the terms of the consent
                                               are reported in Schedule B, items 5(a)                                                                        agreement, and the allegations in the
                                               and 11(a); and (5) making minor                         National Association of Animal                        complaint. An electronic copy of the
                                               clarifications to the form and                          Breeders, Inc.; Analysis To Aid Public                full text of the consent agreement
                                               instructions. The proposed changes                      Comment                                               package can be obtained from the FTC
                                               would be effective for reports submitted                                                                      Home Page (for August 18, 2017), on the
                                                                                                       AGENCY:    Federal Trade Commission.
                                               on or after January 1, 2018, beginning                                                                        World Wide Web, at https://
                                               with reports reflecting the December 31,                ACTION:   Proposed Consent Agreement.
                                                                                                                                                             www.ftc.gov/news-events/commission-
                                               2017, report date.                                      SUMMARY:    The consent agreement in this             actions.
                                                  Legal Authorization and                              matter settles alleged violations of                     You can file a comment online or on
                                               Confidentiality: The Board has                          federal law prohibiting unfair methods                paper. For the Commission to consider
                                               determined that the FR Y–15 is                          of competition. The attached Analysis to              your comment, we must receive it on or
                                               authorized by the Dodd-Frank Act                        Aid Public Comment describes both the                 before September 19, 2017. Write ‘‘In
                                               (sections 163, 165, and 604), the                       allegations in the complaint and the                  the Matter of National Association of
                                               International Banking Act, the Bank                     terms of the consent order—embodied                   Animal Breeders, Inc. File No. 1510138’’
                                               Holding Company Act, and the Home                       in the consent agreement—that would                   on your comment. Your comment—
                                               Owners’ Loan Act (12 U.S.C. 1467a,                      settle these allegations.                             including your name and your state—
                                               1844, 3106, and 3108). The obligation to                                                                      will be placed on the public record of
                                                                                                       DATES: Comments must be received on
                                               respond to the FR Y–15 is mandatory.                                                                          this proceeding, including, to the extent
                                                  Most of the data collected on the FR                 or before September 19, 2017.
                                                                                                       ADDRESSES: Interested parties may file a
                                                                                                                                                             practicable, on the public Commission
                                               Y–15 is made public unless a specific                                                                         Web site, at https://www.ftc.gov/policy/
                                               request for confidentiality is submitted                comment online or on paper, by
                                                                                                       following the instructions in the                     public-comments.
                                               by the reporting entity, either on the FR                                                                        Postal mail addressed to the
                                               Y–15 or on the form from which the                      Request for Comment part of the
                                                                                                       SUPPLEMENTARY INFORMATION section
                                                                                                                                                             Commission is subject to delay due to
                                               data item is obtained.4 Such information                                                                      heightened security screening. As a
                                               will be accorded confidential treatment                 below. Write: ‘‘In the Matter of National
                                                                                                       Association of Animal Breeders, Inc.                  result, we encourage you to submit your
                                               under exemption 4 of the Freedom of                                                                           comments online. To make sure that the
                                               Information Act (FOIA), (5 U.S.C.                       File No. 1510138’’ on your comment,
                                                                                                       and file your comment online at https://              Commission considers your online
                                               552(b)(4)), if the submitter substantiates                                                                    comment, you must file it at https://
                                                                                                       ftcpublic.commentworks.com/ftc/
                                                 2 See                                                 cattleartificialinseminationconsent by                ftcpublic.commentworks.com/ftc/
                                                         12 CFR 217.402.
                                                                                                                                                             cattleartificialinseminationconsent by
rmajette on DSKBCKNHB2PROD with NOTICES




                                                 3 12  U.S.C. 5365.                                    following the instructions on the web-
                                                 4 A number of the items in the FR Y–15 are
                                                                                                       based form. If you prefer to file your                following the instructions on the web-
                                               retrieved from the FR Y–9C and certain items may        comment on paper, write ‘‘In the Matter               based form. If this Notice appears at
                                               be retrieved from the FFIEC–101 and FFIEC 009.
                                                                                                       of National Association of Animal                     http://www.regulations.gov/#!home, you
                                               Confidential treatment will also extend to any                                                                also may file a comment through that
                                               automatically-calculated items on the FR Y–15 that
                                               have been derived from confidential data items and        5 See Instructions for the end-2016 G–SIB           Web site.
                                               that, if released, would reveal the underlying          assessment exercise, January 2017, available at          If you prefer to file your comment on
                                               confidential data.                                      www.bis.org/bcbs/gsib/instr_end16_gsib.pdf.           paper, write ‘‘In the Matter of National


                                          VerDate Sep<11>2014   15:29 Aug 23, 2017   Jkt 241001   PO 00000   Frm 00026   Fmt 4703   Sfmt 4703   E:\FR\FM\24AUN1.SGM   24AUN1


                                               40156                       Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices

                                               Association of Animal Breeders, Inc.                    request that meets the requirements for               members of the public. Comments
                                               File No. 1510138’’ on your comment                      such treatment under FTC Rule 4.9(c),                 received during this period will become
                                               and on the envelope, and mail your                      and the General Counsel grants that                   part of the public record. After 30 days,
                                               comment to the following address:                       request.                                              the Commission will review the Consent
                                               Federal Trade Commission, Office of the                    Visit the FTC Web site to read this                Agreement and comments received, and
                                               Secretary, 600 Pennsylvania Avenue                      Notice and the news release describing                decide whether it should withdraw,
                                               NW., Suite CC–5610 (Annex D),                           it. The FTC Act and other laws that the               modify, or make the Consent Agreement
                                               Washington, DC 20580, or deliver your                   Commission administers permit the                     final.
                                               comment to the following address:                       collection of public comments to                         The Consent Agreement is for
                                               Federal Trade Commission, Office of the                 consider and use in this proceeding, as               settlement purposes only and does not
                                               Secretary, Constitution Center, 400 7th                 appropriate. The Commission will                      constitute an admission by NAAB that
                                               Street SW., 5th Floor, Suite 5610                       consider all timely and responsive                    it has violated the law as alleged in the
                                               (Annex D), Washington, DC. 20024. If                    public comments that it receives on or                Complaint or that the facts alleged in
                                               possible, submit your paper comment to                  before September 19, 2017. For                        the Complaint, other than jurisdictional
                                               the Commission by courier or overnight                  information on the Commission’s                       facts, are true.
                                               service.                                                privacy policy, including routine uses                   The purpose of this Analysis to Aid
                                                  Because your comment will be placed                  permitted by the Privacy Act, see                     Public Comment is to invite and
                                               on the publicly accessible FTC Web site                 https://www.ftc.gov/site-information/                 facilitate public comment. It is not
                                               at https://www.ftc.gov, you are solely                  privacy-policy.                                       intended to constitute an official
                                               responsible for making sure that your                                                                         interpretation of the proposed Consent
                                                                                                       Analysis of Agreement Containing
                                               comment does not include any sensitive                                                                        Agreement and the accompanying
                                                                                                       Consent Order To Aid Public Comment
                                               or confidential information. In                                                                               Proposed Order, or in any way modify
                                               particular, your comment should not                        The Federal Trade Commission
                                                                                                       (‘‘Commission’’) has accepted, subject to             their terms.
                                               include any sensitive personal
                                               information, such as your or anyone                     final approval, an Agreement                          I. The Complaint
                                               else’s Social Security number; date of                  Containing Consent Order (‘‘Consent
                                                                                                                                                                The Complaint makes the following
                                               birth; driver’s license number or other                 Agreement’’) from the National
                                                                                                       Association of Animal Breeders, Inc.                  allegations.
                                               state identification number, or foreign                                                                          NAAB is a non-profit corporation
                                               country equivalent; passport number;                    (‘‘NAAB’’). NAAB is a trade association
                                                                                                       of cattle artificial insemination firms.              with about 24 regular members that
                                               financial account number; or credit or
                                                                                                          Dairy production in the United States              compete among themselves and with
                                               debit card number. You are also solely
                                                                                                       is dependent on volume from more than                 others in the business of collecting,
                                               responsible for making sure that your
                                                                                                       9.3 million cows, the market for which                processing, freezing, marketing or
                                               comment does not include any sensitive
                                                                                                       relies on services provided by NAAB                   selling dairy cattle semen for artificial
                                               health information, such as medical
                                                                                                       member breeders. In 2008, the U.S.                    insemination. NAAB’s members buy
                                               records or other individually
                                                                                                       Department of Agriculture, with partial               dairy bulls from dairy farmers and
                                               identifiable health information. In
                                                                                                       funding from the NAAB through a                       breeders to produce semen for artificial
                                               addition, your comment should not
                                                                                                       Cooperative Research and Development                  insemination. NAAB members together
                                               include any ‘‘trade secret or any
                                                                                                       Agreement (‘‘CRADA’’), developed a                    account for more than 90 percent of
                                               commercial or financial information
                                               which . . . is privileged or                            new technology that is the best indicator             dairy cattle semen sales in the United
                                               confidential’’—as provided by Section                   of genetic merit of dairy bulls for use in            States.
                                               6(f) of the FTC Act, 15 U.S.C. 46(f), and               artificial insemination in so far as                     In September 2006, NAAB entered
                                               FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—                 yielding higher producing dairy cows.                 into a CRADA with the United States
                                               including in particular competitively                   The Commission’s complaint                            Department of Agriculture (‘‘USDA’’) to
                                               sensitive information such as costs,                    (‘‘Complaint’’) alleges that NAAB                     cooperate with a USDA laboratory in a
                                               sales statistics, inventories, formulas,                violated Section 5 of the Federal Trade               project for developing the genomic
                                               patterns, devices, manufacturing                        Commission Act, as amended, 15 U.S.C.                 testing technology described above. The
                                               processes, or customer names.                           45, by restraining competition among its              CRADA granted NAAB exclusive access
                                                  Comments containing material for                     regular members in the use of this new                to the results of the CRADA project until
                                               which confidential treatment is                         technology, which dampened                            February 2013. The CRADA did not
                                               requested must be filed in paper form,                  competition in the market for dairy                   restrain in any way the ability of NAAB
                                               must be clearly labeled ‘‘Confidential,’’               bulls used for semen production.                      or its members to use the new
                                               and must comply with FTC Rule 4.9(c).                      This matter reaffirms the longstanding             technology or to sell access to it, nor did
                                               In particular, the written request for                  rule that trade associations composed of              it authorize NAAB or its members to
                                               confidential treatment that accompanies                 members that compete among                            adopt rules that restrain in any way the
                                               the comment must include the factual                    themselves, while typically serving                   ability of its members to use the new
                                               and legal basis for the request, and must               important and procompetitive                          technology or to sell access to it.
                                               identify the specific portions of the                   functions, must not adopt rules or                       By April 2008, the USDA laboratory
                                               comment to be withheld from the public                  regulations that unreasonably limit                   had developed the new technology,
                                               record. See FTC Rule 4.9(c). Your                       competition among their members. It                   known as the Genomic Predicted
                                               comment will be kept confidential only                  also illustrates that industry groups that            Transmitting Ability (‘‘GPTA’’), which
                                               if the General Counsel grants your                      obtain valuable and unique technology                 analyzes the genetics of a dairy bull to
rmajette on DSKBCKNHB2PROD with NOTICES




                                               request in accordance with the law and                  from the government may not establish                 predict the ability of the bull to transmit
                                               the public interest. Once your comment                  rules or regulations regarding that                   commercially important traits, such as
                                               has been posted on the public FTC Web                   technology that unreasonably restrain                 milk yield, to its daughters. This new
                                               site—as legally required by FTC Rule                    competition.                                          technology is superior to the traditional
                                               4.9(b)—we cannot redact or remove                          The Consent Agreement has been                     method of evaluating dairy bulls for
                                               your comment from the FTC Web site,                     placed on the public record for 30 days               semen production, and it became the
                                               unless you submit a confidentiality                     for receipt of comments from interested               best indicator of a dairy bull’s


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                                                                           Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices                                          40157

                                               commercial value for transmitting                          A proviso to Paragraph II specifies                collection for the proper performance of
                                               genetic traits.                                         that the Proposed Order does not                      the agency’s functions, the accuracy of
                                                  In October 2008, more than two years                 prohibit NAAB from engaging in any                    the estimated burden, ways to enhance
                                               after entering into the CRADA, NAAB                     conduct that is reasonably necessary to               the quality, utility, and clarity of the
                                               approved a resolution that regulated its                achieve procompetitive benefits or                    information to be collected; and the use
                                               members’ access to the new technology                   efficiencies relating to NAAB’s                       of automated collection techniques or
                                               during the exclusivity period granted by                operation or to the operation of its                  other forms of information technology to
                                               the CRADA (through February 2013).                      members, provided that such benefits or               minimize the information collection
                                               NAAB acted as a combination of its                      efficiencies likely would offset the                  burden.
                                               members when it approved the                            anticompetitive harms.                                DATES:Comments on the collection(s) of
                                               resolution.                                                Paragraph III requires that, for five              information must be received by the
                                                  The resolution required that for a                   years, NAAB notify the Commission if                  OMB desk officer by September 25,
                                               NAAB member to obtain the GPTA of a                     it adopts or modifies any regulation that             2017.
                                               dairy bull, the Member had to have one                  restrains the ability of its members to
                                               of the following interests in the bull: (a)             obtain disclose, provide, sell or use any             ADDRESSES:   When commenting on the
                                               Own the bull, (b) have an agreement to                  technology or information resulting                   proposed information collections,
                                               purchase at least a 30 percent interest in              from any research project.                            please reference the document identifier
                                               the bull, (c) have a lease on the bull, or                 Paragraph V of the Proposed Order                  or OMB control number. To be assured
                                               (d) have an exclusive marketing                         requires that NAAB implement an                       consideration, comments and
                                               agreement for the bull. The USDA                        antitrust compliance program to ensure                recommendations must be received by
                                               laboratory was the only source of                       compliance with the Proposed Order                    the OMB desk officer via one of the
                                               GPTAs during the exclusivity period.                    and the antitrust laws.                               following transmissions: OMB, Office of
                                                  The Complaint alleges that NAAB’s                       Paragraphs IV and VI–VIII of the                   Information and Regulatory Affairs,
                                               resolution harmed competition by                        Proposed Order impose certain standard                Attention: CMS Desk Officer, Fax
                                               diminishing competition for dairy bulls                 reporting and compliance requirements                 Number: (202) 395–5806 OR Email:
                                               used for semen production. First, it                    on NAAB.                                              OIRA_submission@omb.eop.gov.
                                               impeded the development of a market in                                                                          To obtain copies of a supporting
                                                                                                         By direction of the Commission.
                                               which dairy farmers and breeders could                                                                        statement and any related forms for the
                                                                                                       Donald S. Clark,
                                               pay NAAB members to obtain GPTAs                                                                              proposed collection(s) summarized in
                                                                                                       Secretary.                                            this notice, you may make your request
                                               for their dairy bulls. Second, the                      [FR Doc. 2017–17880 Filed 8–23–17; 8:45 am]
                                               resolution limited NAAB members from                                                                          using one of following:
                                               obtaining the GPTA of bulls in which
                                                                                                       BILLING CODE 6750–01–P                                  1. Access CMS’ Web site address at
                                               they did not already have a financial                                                                         https://www.cms.gov/Regulations-and-
                                               interest. Access to a bull’s GPTA prior                                                                       Guidance/Legislation/
                                               to buying or selling it would tend to                   DEPARTMENT OF HEALTH AND                              PaperworkReductionActof1995/PRA-
                                               increase competition and drive the price                HUMAN SERVICES                                        Listing.html.
                                               of the bull toward a value that more                                                                            2. Email your request, including your
                                                                                                       Centers for Medicare & Medicaid                       address, phone number, OMB number,
                                               accurately reflects its ability to yield                Services
                                               higher producing dairy cows. After the                                                                        and CMS document identifier, to
                                               exclusivity period expired in February                  [Document Identifier: CMS–10371, CMS–                 Paperwork@cms.hhs.gov.
                                               2013, GPTAs became available for a fee                  10507, CMS–10558 and CMS–10650]                         3. Call the Reports Clearance Office at
                                               through an industry organization.                                                                             (410) 786–1326.
                                                                                                       Agency Information Collection                         FOR FURTHER INFORMATION CONTACT:
                                                  The Complaint alleges that the
                                                                                                       Activities: Submission for OMB                        William Parham at (410) 786–4669.
                                               purpose, effect, tendency or capacity of
                                                                                                       Review; Comment Request
                                               the resolution was to restrain                                                                                SUPPLEMENTARY INFORMATION: Under the
                                               competition unreasonably among                          AGENCY: Centers for Medicare &                        Paperwork Reduction Act of 1995 (PRA)
                                               NAAB’s Members, and that this conduct                   Medicaid Services, HHS.                               (44 U.S.C. 3501–3520), federal agencies
                                               injured dairy farmers and breeders by                   ACTION: Notice.                                       must obtain approval from the Office of
                                               depriving them of the benefits of free                                                                        Management and Budget (OMB) for each
                                               and open competition. Therefore, the                    SUMMARY:    The Centers for Medicare &                collection of information they conduct
                                               resolution constitutes an unfair method                 Medicaid Services (CMS) is announcing                 or sponsor. The term ‘‘collection of
                                               of competition that violates Section 5 of               an opportunity for the public to                      information’’ is defined in 44 U.S.C.
                                               the Federal Trade Commission Act.                       comment on CMS’ intention to collect                  3502(3) and 5 CFR 1320.3(c) and
                                                                                                       information from the public. Under the                includes agency requests or
                                               II. The Proposed Order
                                                                                                       Paperwork Reduction Act of 1995                       requirements that members of the public
                                                  The Proposed Order has the following                 (PRA), federal agencies are required to               submit reports, keep records, or provide
                                               substantive provisions. Paragraph II                    publish notice in the Federal Register                information to a third party. Section
                                               requires NAAB to cease and desist from                  concerning each proposed collection of                3506(c)(2)(A) of the PRA (44 U.S.C.
                                               restraining the ability of its members to               information, including each proposed                  3506(c)(2)(A)) requires federal agencies
                                               obtain, disclose, provide, use or sell any              extension or reinstatement of an existing             to publish a 30-day notice in the
                                               technology or information resulting                     collection of information, and to allow               Federal Register concerning each
rmajette on DSKBCKNHB2PROD with NOTICES




                                               from research projects conducted by, or                 a second opportunity for public                       proposed collection of information,
                                               pursuant to, an agreement to which                      comment on the notice. Interested                     including each proposed extension or
                                               NAAB is a party. The Proposed Order                     persons are invited to send comments                  reinstatement of an existing collection
                                               also prohibits NAAB from restraining                    regarding the burden estimate or any                  of information, before submitting the
                                               price-related competition among its                     other aspect of this collection of                    collection to OMB for approval. To
                                               members relating to the sale or                         information, including the necessity and              comply with this requirement, CMS is
                                               acquisition of bulls or bull semen.                     utility of the proposed information                   publishing this notice that summarizes


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Document Created: 2018-10-24 12:37:50
Document Modified: 2018-10-24 12:37:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionProposed Consent Agreement.
DatesComments must be received on or before September 19, 2017.
ContactArmando Irizarry (202-326-2964), Bureau of Competition, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation82 FR 40155 

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