Pipeline Communications Responds to Justice Department Investigation

Strategic Insights -

Pipeline Communications, Inc., a leading provider of electronic customer registration services, has responded to a Civil Investigative Demand (CID) from the U.S. Department of Justice Anti-Trust Division regarding Microsoft Corporation's plans for its new online service. This investigation is a result of information provided by Pipeline clients, and the company has been authorized to release certain information. According to Pipeline CEO and president Matt Thompson, the Justice Department is interested in factual data regarding how people respond to electronic offers for online services, with a focus on the success of trial memberships offered to customers.

Key Takeaways:

  • Pipeline Communications, Inc. has responded to a Civil Investigative Demand (CID) from the U.S. Department of Justice Anti-Trust Division.
  • The CID is related to Microsoft Corporation's plans for its new online service, which was triggered by information provided by Pipeline clients.
  • Pipeline was initially reluctant to provide information due to the confidentiality of its customers' data, but was subsequently authorized to release certain information.
  • The Justice Department is interested in factual data regarding how people respond to electronic offers for online services.
  • According to Pipeline's data, approximately 60 percent of people offered trial memberships accept them.
  • Pipeline provides electronic customer registration services to leading computer hardware and software manufacturers, including Compaq Computer Corporation, IBM Corporation, Adobe/Aldus, America Online, Borland International, and Lotus Development Corporation.
  • The company also offers electronic information and marketing services that facilitate communication between manufacturers and end users.
  • Pipeline's services allow clients to provide end-user customers with the opportunity to take advantage of special offers, such as trial memberships to online services.

Statistics:

  • Approximately 60 percent of people offered trial memberships by Pipeline's clients accept them.
  • Pipeline Communications, Inc. provides services to leading computer hardware and software manufacturers, including Compaq Computer Corporation, IBM Corporation, Adobe/Aldus, America Online, Borland International, and Lotus Development Corporation.
  • The company's services facilitate communication between manufacturers and end users, allowing for electronic customer registration and marketing services.

Sources:

  • Pipeline Communications, Inc. press release, undated
  • Quotes from Matt Thompson, Pipeline Communications CEO and president, pipelinecommunications.com, undated
  • Compaq Computer Corporation, ibm.com, Adobe/Aldus, americaonline.com, Borland International, lotus.com