Police body camera maker Axon sues FTC over ‘unconstitutional’ acquisition review process

guest · Jan 3, 2020

Police body camera maker Axon sues FTC over ‘unconstitutional’ acquisition review process
Axon Sues U.S. Federal Trade Commission Amid Antitrust Probe
January 3, 2020
https://www.geekwire.com/2020/polic...-unconstitutional-acquisition-review-process/

Axon is taking on the U.S. Federal Trade Commission, alleging in a new lawsuit the regulator is operating an unconstitutional acquisition review process.

The FTC has been investigating Axon’s 2018 acquisition of rival body camera maker Vievu for possible anti-competitive concerns. The FTC in late December gave an “unprecedented ultimatum” requiring Axon to divest the Vievu assets and also hand over its own intellectual property as part of a “blank check” to build up a “clone” competitor armed with Axon’s technology, according to the suit.

“The FTC is seeking to deprive Axon of its intellectual property without Due Process, an unprecedented ultimatum that sends a chilling message to the nation’s technology-based industries,” according to the lawsuit.
“If the FTC believes it has a strong case against us, it should prove it in federal court before a neutral judge. Our action today seeks to ensure that will happen.”
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In a press release about the lawsuit, filed in U.S. District Court in Arizona, Axon called Vievu “a failing company, with a mountain of debt and only 3 days of cash.” Axon said it acquired Vievu for “$7 million in cash and stock plus up to $6 million in potential earn-outs along with a holster supply agreement.”
The acquisition, Axon argues, has not hurt competition in the body camera and law enforcement technology markets.

In the lawsuit, Axon said it has spent more than $200 million over the last 10 years developing its technology.
Axon v. FTC by Nat Levy on Scribd
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Axon CEO Rick Smith’s blog post
Axon: Axon Sues FTC for Alleged Violation of US Constitution

"Our entire business serves the justice system. So, we understand the critical importance of the right to a fair and impartial trial before an unbiased court. We have unwavering resolve to seek justice," concluded Smith.
A copy of Axon's Complaint is available at www.Axon.com/ftc.
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guest · Jan 4, 2020

FTC Challenges Consummated Merger of Companies that Market Body-Worn Camera Systems to Large Metropolitan Police Departments
January 3, 2020
https://www.ftc.gov/news-events/pre...consummated-merger-companies-market-body-worn

The Federal Trade Commission has issued an administrative complaint (a public version of which will be available and linked to this news release as soon as possible) challenging Axon Enterprise, Inc.’s consummated acquisition of its body-worn camera systems competitor VieVu, LLC. Before the acquisition, the two companies competed to provide body-worn camera systems to large, metropolitan police departments across the United States.

By eliminating direct and substantial competition in price and innovation between dominant supplier Axon and its closest competitor, VieVu, to serve large metropolitan police departments, the merger removed VieVu as a bidder for new contracts and allowed Axon to impose substantial price increases, according to the complaint.

“Competition not only keeps prices down, but it drives innovation that makes products better,” said Ian Conner, Director of the FTC’s Bureau of Competition.
The complaint also states that as part of the merger agreement, Axon entered into several long-term ancillary agreements with VieVu’s former parent company, Safariland, that also substantially lessened actual and potential competition.
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guest · Apr 18, 2020

VieVu’s Former Parent Company Safariland Agrees to Settle Charges That It Entered into Anticompetitive Agreements with Body-Worn Camera Systems Seller Axon
Settlement is part of a larger case challenging Axon’s consummated acquisition of former competitor VieVu
April 17, 2020
https://www.ftc.gov/news-events/pre...t-company-safariland-agrees-settle-charges-it

Safariland, LLC, which manufactures and sells equipment for the law-enforcement, military, and recreational markets, has agreed to settle Federal Trade Commission allegations that it entered several anticompetitive non-compete and customer non-solicitation agreements with body-worn camera system seller Axon. Safariland entered into these agreements when Axon acquired Safariland’s VieVu body-worn camera division.

The FTC issued an administrative complaint against Axon and Safariland on Jan. 3, 2020, challenging the acquisition and the non-compete and non-solicitation agreements.
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guest · Jun 17, 2020

FTC Approves Final Order Settling Charges that VieVu’s Former Parent Company Safariland Entered into Anticompetitive Agreements with Body-Worn Camera Systems Seller Axon
June 16, 2020
https://www.ftc.gov/news-events/pre...l-order-settling-charges-vievus-former-parent

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Safariland, LLC, which manufactures and sells equipment for the law-enforcement, military, and recreational markets, entered several anticompetitive agreements with body-worn camera system seller Axon.
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Police body camera maker Axon sues FTC over ‘unconstitutional’ acquisition review process

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