ATLANTA & LAKE SUCCESS, N.Y. -

Representatives from Cox Automotive and Dealertrack Technologies on Wednesday used the adjectives “important” and “key” to describe moves made by the Department of Justice to provide a pathway for the companies to finalize their agreement that’s been in the works since mid-June.

Furthermore, Cox Automotive elaborated a bit about one element of the Justice Department’s decision that focused on Dealertrack’s interest in Chrome Data Solutions.

In an announcement first released late on Tuesday, DOJ officials said Cox Automotive must undertake various obligations to prevent Cox Automotive from using Dealertrack’s interest in Chrome Data Solutions, a company that compiles and licenses vehicle information data for use in inventory systems and other automated solutions and services for the automotive industry.

“Chrome Data Solutions is a joint venture between Dealertrack and Autodata that provides vehicle information data utilized in the industry, including for inventory management applications,” Cox Automotive spokesperson David Doolittle told Auto Remarketing on Wednesday afternoon in an emailed message.

“We are committed to achieving open integration among our combined solutions and other third-party providers, including ensuring the availability of this data for all customers’ needs,” Doolittle continued.

“Accordingly, our commitment to the DOJ facilitates competition in the marketplace by facilitating data access that will deliver greater value and economic efficiency to our customers,” he went on to say.

The primary cause of the Justice Department concern about Cox Automotive acquiring Dealertrack was one company holding too much of the market for the service vital to dealerships.

The department’s Antitrust Division filed a civil antitrust lawsuit on Tuesday in the U.S. District Court of the District of Columbia to block the proposed acquisition.  At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.

According to the department’s complaint, Cox Automotive and Dealertrack are the two leading IMS providers. Officials calculated Cox Automotive’s acquisition of Dealertrack would increase its market share from 60 percent to 86 percent.

But Dealertrack has an agreement with DealerSocket for that company to acquire Dealertrack’s Inventory+ suite of inventory management solutions, including its AAX product in the U.S. and Canada, as well as its eCarlist websites, in a $55 million transaction.

“Cox’s proposed acquisition of Dealertrack would have allowed Cox to become the dominant inventory management solution provider in the United States,” Assistant Attorney General Bill Baer of the Antitrust Division said.  “The divestiture will ensure that automotive dealerships in the United States continue to benefit from the competition that now exists among inventory management solution providers.”

Now with a plan in place orchestrated by the Justice Department, the agreement can be finalized after being delayed five different times since the initial announcement of the $4.2 billion deal back on June 12.

“The DOJ news is an important development and we are moving expeditiously to close the transaction,” Doolittle said.

In a separate email message to Auto Remarketing, spokesperson Alison Von Puschendorf said on behalf of Dealertrack:“The DOJ decision was a key step and we are moving expeditiously toward closing the acquisition.”

Auto Remarketing editor Joe Overby contributed to his report.