Handling Competitively Sensitive Information in a Vertically Integrated Firm: Practical Antitrust Advice For In-House Counsel.

It is therefore critical for in-house counsel tounderstand fully the particular nature of the CSI thatthe firm will be receiving, the client's business plans,the client's organizations and data management structure,and how CSI may be used in a manner consistent withantitrust laws. From both a legal and business perspective, it isimportant that the firm's suppliers, customers andcompetitors know that the vertically integrated firm istaking seriously its obligations to safeguard CSI thatcould potentially be used in an anticompetitive manner. Firms seekingto vertically integrate therefore need to be prepared forpotential investigations and recourse because antitrustenforcers will want to ensure that CSI does not lessencompetition after a firm merges with a partner in thesupply chain. In-house counsel often face the challenge of ensuringthat their organization properly maintains competitivelysensitive information ("CSI"), a challenge that becomesdramatically more complex when the organization isvertically integrated and transacts with third partieswho are suppliers or customers on the one hand, andcompetitors on the other. [Extracted from the article]