{"id":7733,"date":"2010-03-08T18:02:20","date_gmt":"2010-03-09T02:02:20","guid":{"rendered":"http:\/\/www.bradblog.com\/?p=7733"},"modified":"2010-03-09T04:56:08","modified_gmt":"2010-03-09T12:56:08","slug":"doj-to-require-ess-to-sell-off-assets-from-diebold-merger-citing-anti-trust-concerns","status":"publish","type":"post","link":"https:\/\/bbnewdb.webbyspice.com\/?p=7733","title":{"rendered":"DOJ TO REQUIRE ES&#038;S TO SELL OFF ASSETS FROM DIEBOLD MERGER CITING ANTI-TRUST CONCERNS"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/BradBlog.com\/Images\/ESSDieboldPremier_DoJProbe_divest.jpg\" hspace=\"6\" vspace=\"3\" border=\"0\" align=\"right\">The Department of Justice&#8217;s Anti-trust division has determined that the purchase of Premier Election Solutions, Diebold Inc.&#8217;s recently renamed e-voting division, by Election Systems &#038; Software, Inc. (ES&#038;S), has resulted in a voting machine monopoly. The DoJ and nine states that have joined in a lawsuit are suing to require ES&#038;S to divest of the assets gained in the <a href=\"https:\/\/bradblog.com\/?p=7392\">bargain-basement priced purchase<\/a> of Diebold&#8217;s e-voting outfit last September.<\/p>\n<p>The merger with Diebold\/Premier, ES&#038;S&#8217;s second largest competitor, had given ES&#038;S, a private corporation which already controlled some 50% of U.S. elections with its electronic voting systems, a <a href=\"https:\/\/bradblog.com\/?p=7413\">full 70% control of the votes cast in this country<\/a>.  The acquisition had been opposed by <a href=\"http:\/\/www.bbvforums.org\/forums\/messages\/8\/80787.html\">election integrity organizations<\/a>, Hart Intercivic (a much smaller Austin-based competitor), the <a href=\"https:\/\/bradblog.com\/?p=7491\"><em>New York Times&#8217;<\/em> editorial board<\/a>, and U.S. Sen. Chuck Schumer (D-NY) in his capacity as chairman of the Senate Rules Committee, and was being <a href=\"https:\/\/bradblog.com\/?p=7592\">investigated by 14 different states<\/a> along with the DoJ&#8217;s anti-trust division&#8230;<\/p>\n<p><!--more--><\/p>\n<p>A settlement has been struck, pending approval by a federal judge, between the DOJ, nine states, and ES&#038;S requiring that the private company find a DoJ-approved purchaser of the Diebold\/Premier assets. Prior to the $5 million sale to ES&#038;S, Diebold had been searching for a buyer for a number of years, even as it faced investigations <a href=\"https:\/\/bradblog.com\/?p=2805\">by the SEC<\/a> and <a href=\"https:\/\/bradblog.com\/?p=5468\">the DoJ<\/a>, share-holder <a href=\"https:\/\/bradblog.com\/?p=2154\">class action suits<\/a>, and a number of legal battles with states and country jurisdictions around the country after voting systems were found to have failed or in <a href=\"http:\/\/DieboldReturnOurMoney.com\">violation of federal and state standards<\/a>. Diebold purchased the election division from Global Election Systems in 2002 for the price of $25 million.<\/p>\n<p>The proposed settlement, signed by the DoJ, ES&#038;S, and representatives of state attorneys general in Arizona, Colorado, Florida, Maine, Maryland, Massachusetts, New Mexico, Tennessee, and Washington has been <a href=\"http:\/\/www.floridavoters.org\/downloads\/DoJ%20docs%20-%202010-03-08.pdf\">posted here [PDF]<\/a>.<\/p>\n<p>An <a href=\"http:\/\/sify.com\/finance\/is-a-voting-machine-merger-too-big-to-stand-news-international-kdeqkihhbce.html\">AP report<\/a> on the potential lawsuit by the DoJ last week noted that &#8220;As a privately held company, ES&#038;S issues no financial reports. It didn&#8217;t tell the Justice Department about the Diebold deal because the transaction wasn&#8217;t big enough to trigger the federal law that requires the government to be informed of big mergers before they are completed.&#8221;<\/p>\n<p><a href=\"https:\/\/bradblog.com\/Images\/USMap_BeforeESSDieboldPremierMerger.gif\"><img decoding=\"async\" src=\"https:\/\/BradBlog.com\/Images\/USMap_BeforeAfterESSDieboldPremierMerger_DOJOrder.gif\" hspace=\"6\" vspace=\"3\" border=\"0\" align=\"left\"><\/a>The article added that a Congressional Research Service report found the merger had given ES&#038;S &#8220;a presence in 90 percent of the states&#8221; making it the &#8220;sole source&#8221; for election systems in &#8220;at least 20,&#8221; given them &#8220;a market share three or more times that of its closest competitor.&#8221;<\/p>\n<p>AP&#8217;s coverage of today&#8217;s news can be <a href=\"http:\/\/www.google.com\/hostednews\/ap\/article\/ALeqM5goNJc6Ex7IqSaUIudP33kp3cn8hAD9EANRP80\">found here<\/a>.<\/p>\n<p>The DoJ-ordered unwinding of the merger, however, will do little to ensure the accuracy or ability of citizens to oversee their own elections run on unobservable, easily manipulated, oft-failed electronic voting systems which use secret software made by private corporations to count votes in our public elections.<\/p>\n<p>Just one recent example of the dangers of easily manipulated e-voting systems made by ES&#038;S, Diebold, and others can be found in the current federal trial, now ongoing in Clay County, KY, of six top election officials who are alleged, as <a href=\"https:\/\/bradblog.com\/?p=7723\">we reported last week<\/a>, to have manipulated election results by flipping votes on ES&#038;S voting machines, without the knowledge of voters, as part of a decades-long election rigging scheme.<\/p>\n<p><em><strong>UPDATE:<\/strong><\/em> The DoJ&#8217;s announcement of the requirement and proposed settlement is <a href=\"http:\/\/www.justice.gov\/opa\/pr\/2010\/March\/10-at-235.html\">now posted here&#8230;<\/a><\/p>\n<p><center><i><b>* * *<\/b><\/i><\/center><\/p>\n<p><center><b><a href=\"http:\/\/www.BradBlog.com\"><b>The BRAD BLOG<\/b><\/a> covers your electoral system fiercely and independently, like no other media outlet in the nation. Please support our work with <a href=\"https:\/\/www.paypal.com\/xclick\/business=Brad@BradBlog.com&#038;item_name=Support+for+The+BRAD+BLOG&#038;item_number=2010\"><b>a donation<\/b><\/a> to help us keep going (<a href=\"https:\/\/bradblog.com\/?p=7194\"><b>Snail mail, more options here<\/b><\/a>). If you like, we&#8217;ll send you some great, award-winning election integrity documentary films in return! <a href=\"https:\/\/bradblog.com\/?p=6662\"><i><b>Details right here&#8230;<\/b><\/i><\/a><\/b><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Justice&#8217;s Anti-trust division has determined that the purchase of Premier Election Solutions, Diebold Inc.&#8217;s recently renamed e-voting division, by Election Systems &#038; Software, Inc. (ES&#038;S), has resulted in a voting machine monopoly. The DoJ and nine states that have joined in a lawsuit are suing to require ES&#038;S to divest of the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[],"class_list":["post-7733","post","type-post","status-publish","format-standard","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=\/wp\/v2\/posts\/7733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7733"}],"version-history":[{"count":0,"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=\/wp\/v2\/posts\/7733\/revisions"}],"wp:attachment":[{"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bbnewdb.webbyspice.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}