Decision Nº M/04/024 from Competition and Consumer Protection Commission, 2004-05-20

PartiesModus Media,CMGI
Date20 May 2004
Decision NumberM/04/024
StatusPreliminary investigation (Phase 1)
CourtCompetition and Consumer Protection Commission (Ireland)
Decision Date20 May 2004
Determination of the Competition Authority
Determination No. M/04/024 of the Competition Authority, dated
20 May 2004, under Section 21 of the Competition Act, 2002
Notification No. M/04/024 – The proposal by CMGI, Inc to acquire
Modus Media, Inc.
1. On 22 April 2004 the Competition Authority, in accordance with
Section 18(1) of the Competition Act, 2002 (“the Act”) was notified,
on a mandatory basis, of a proposal whereby CMGI, Inc (“CMGI”)
would acquire Modus Media, Inc (“Modus”) (“the proposed
2. The proposed acquisition is global in nature and was notified to the
United States Federal Trade Commission (“FTC”) on 15 April 2004.
The FTC subsequently cleared the proposed acquisition on 23 April
The Parties
3. CMGI, the acquirer, is a global provider of technology and e-
commerce solutions that assist businesses in the marketing and
supply of their products and services. CMGI also invests in technology-
based ventures. CMGI is incorporated and headquartered in the United
States and has operating facilities in the United States, Mexico, the
Netherlands, Ireland, Singapore, Taiwan and Malaysia.
4. In its 2003 Annual Report, CMGI summarises its business activities as
“CMGI … provides technology and e-commerce solutions that help
businesses market, sell and distribute their products and services.
CMGI offers targeted solutions including industry-leading global
supply chain management and web-based distribution and fulfillment.
CMGI’s … subsidiaries [focus] on technology and supply chain
management services, as well as the strategic investment in other
companies … CMGI’s eBusiness and Fulfillment companies work
across the full eBusiness value chain to deliver goods from the
manufacturer to the customer by applying state-of-the-art
technology to provide inventory and supply chain management, and
fulfillment services.”
5. CMGI’s subsidiary, SalesLink Corporation (“SalesLink”) provides
services to businesses for their marketing, manufacturing and
distribution programmes. Saleslink’s services involve global supply
chain management and co-ordination of product packaging, assembly,
print management, electronic order processing, procurement of
components, direct fulfillment of software, distribution services, and
inventory management. SalesLink also offers planning services to help

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