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U.S. fines Bill Gates $800,000
Government cites world's richest man for violating antitrust waiting period for stock purchases.
May 3, 2004: 2:35 PM EDT

WASHINGTON (CNN) - It may just be pocket change for the richest man in the world, but Microsoft Chairman Bill Gates has been fined $800,000 by the federal government for violating an antitrust rule.

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Will the world's richest man feel an $800,000 fine?

The technical incident has nothing to do with the government's massive antitrust battles with Microsoft (MSFT: Research, Estimates).

Gates, whose fortune has been estimated at more than $40 billion, ran afoul of the Federal Trade Commission and the Justice Department's Antitrust Division for his purchases of stock in a drug company and a waste-hauling firm.

The Justice Department said Gates has agreed to pay the civil penalty to settle a charge that he violated "premerger reporting requirements."

In a civil suit filed in federal court in Washington Monday, the department said Gates' error stemmed from his acquisition of more than $50 million in voting stock in ICOS (ICOS: Research, Estimates), a drug maker, in May 2002.

The government said Gates did not qualify for an exemption to federal notification requirements because he intended to participate in the business decisions of ICOS through his long-standing membership on that company's board of directors.

The Hart-Scott-Rodino Act of 1976 imposes notification and waiting period requirements on individuals and companies over a certain size before they can complete acquisitions of stock or assets valued at more than $50 million, the Justice Department said.

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"The case filed today is not related Gates' position in Microsoft Corp. or the department's antitrust litigation with the company," the department said in a statement.

The Federal Trade Commission said it had warned Gates about a similar reporting infraction when his personal investment trust bought shares of Republic Services Corp. (RSG: Research, Estimates) in November 2001. The acquisition brought his stake to more than 10 percent of the outstanding shares of the waste-hauling company.

Antitrust rules require that entities must file with the government when their holdings exceed 10 percent of a company's stock.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.