EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Fines Banks €1.71 Billion for Interest Rate Derivatives Cartels
December 04, 2013
The European Commission fined eight international financial institutions a total of €1.71 billion for participating in illegal cartels relating to financial derivatives markets within the European Economic Area.
The cartels involved:
- Euro interest rate derivatives
- Japanese yen interest rate derivatives
- Bilateral cartel arrangements
- Manipulation of benchmark rates
Four institutions participated in the euro derivatives cartel, while six institutions were involved in bilateral yen derivatives cartels.
European Commission Fines Johnson & Johnson and Novartis for Delaying Generic Entry
December 10, 2013
The European Commission imposed fines totaling approximately €16 million on Johnson & Johnson and Novartis for anti-competitive conduct relating to fentanyl pain-killer products.
The Commission found that the companies entered into an agreement to delay entry of cheaper generic fentanyl products into the Netherlands market.
The anti-competitive agreement involved:
- Delay of generic market entry
- Restriction of pharmaceutical competition
- Maintenance of higher drug prices
Fentanyl is a powerful pain-killer commonly used for cancer patients.
European Commission Rejects Ryanair Complaint Against Dublin Airport Authority and Aer Lingus
January 20, 2014
The European Commission rejected a complaint filed by Ryanair alleging violations of Articles 101 and 102 of the Treaty on the Functioning of the European Union.
The allegations concerned airport services at Dublin Airport involving:
- Dublin Airport Authority
- Aer Lingus Group
The Commission observed that the conduct primarily affected Ireland and therefore Irish competition authorities and courts were better placed to address the issues.
General Court Rules on Calcium Carbide Cartel Appeals
January 23, 2014
The General Court ruled on appeals against a European Commission decision imposing penalties for cartel conduct in calcium carbide and magnesium-based reagents markets.
The appeals were filed by:
- SKW
- Evonik Degussa
- Gigaset
The Court dismissed SKW’s appeal entirely while reducing fines imposed on Evonik Degussa and Gigaset.
European Commission Fines Foam Producers €114 Million for Cartel Conduct
January 29, 2014
The European Commission fined four major flexible polyurethane foam producers for participating in a cartel.
The companies involved included:
- Vita
- Carpenter
- Recticel
- Eurofoam
The cartel involved coordination of foam product prices used in:
- Mattresses
- Sofas
- Car seats
The anti-competitive conduct lasted from October 2005 to July 2010.
General Court Dismisses Appeals in Heat Stabilisers Cartel Case
February 06, 2014
The General Court ruled on appeals filed by Arkema, AC Treuhand and Elf Aquitaine against European Commission penalties relating to heat stabilisers cartels.
The Court upheld the Commission’s findings and dismissed all appeals.
European Commission Fines Power Exchanges in Cartel Settlement
March 05, 2014
The European Commission imposed fines totaling €5.9 million on EPEX Spot and Nord Pool Spot.
The Commission found that the companies agreed not to compete in relation to:
- Spot electricity trading services
- European Economic Area electricity markets
Both companies received fine reductions after agreeing to settle the case.
European Commission Fines Automotive Bearings Producers €953 Million
March 19, 2014
The European Commission fined several European and Japanese companies for operating a cartel in the automotive bearings market.
The companies included:
- SKF
- Schaeffler
- JTEKT
- NSK
- NFC
- NTN
The cartel related to bearings used in cars and trucks.
REPUBLIC OF INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
Mr. Ramakant Kini v. Dr. L.H. Hiranandani Hospital, Powai
February 05, 2014
The Competition Commission of India fined Dr. L.H. Hiranandani Hospital for entering into an anti-competitive exclusive arrangement relating to stem cell preservation services.
The Hospital refused permission to another stem cell service provider because of its exclusive agreement with Cryobank.
The CCI observed that such agreements:
- Create entry barriers
- Restrict market competition
- Hinder growth of competing service providers
The agreement was declared void and the Hospital was directed not to enter similar arrangements in future.
Re: Alleged Cartelization in Supply of Spares to Indian Railways
February 05, 2014
The Competition Commission of India imposed penalties totaling Rs.62.31 crore on engineering companies for cartelization relating to Indian Railways tenders.
The companies involved included:
- Stone India Limited
- Faiveley Transport Rail Technologies India Limited
- Escorts Limited
The case related to supply of spares to Diesel Loco Modernisation Works, Patiala.
The CCI directed the companies to cease and desist from future anti-competitive conduct.
In Re: Bengal Chemist and Druggist Association
March 11, 2014
The Competition Commission imposed penalties totaling Rs.18.38 crore on the Bengal Chemist and Druggist Association and its office bearers.
The Association was found to have:
- Controlled sale prices of medicines
- Restricted discounts on medicines
- Controlled supply of drugs
- Penalized retailers violating association directions
The conduct was held to violate Section 3(3) of the Competition Act, 2002.
Consim Info Pvt. Ltd. & CUTS v. Google Inc.
March 26, 2014
The Competition Commission of India imposed a penalty of INR one crore on Google Inc. and Google India Pvt. Ltd.
The allegations involved:
- Discriminatory online search practices
- Manipulation of search algorithms
- Preferential display of Google’s own services
- Uneven playing field for competitors
The complaint also alleged preferential promotion of Google vertical services such as YouTube, Google News and Google Maps.
MARKET DEVELOPMENTS
Department of Justice Requires Divestiture by Heraeus Electro-Nite
January 02, 2014
The U.S. Department of Justice required Heraeus Electro-Nite LLC to divest certain assets acquired from Midwest Instrument Company Inc.
The divestiture was ordered to resolve competition concerns arising from the acquisition.
RBS Securities Japan Sentenced for Yen LIBOR Manipulation
January 06, 2014
RBS Securities Japan Limited was sentenced for manipulating Japanese Yen LIBOR benchmark interest rates.
The company pleaded guilty to wire fraud relating to benchmark manipulation activities.
FTC Approves Pinnacle Entertainment Casino Divestiture
January 07, 2014
The Federal Trade Commission approved Pinnacle Entertainment’s application to divest Lumiere Place Casino and associated assets in St. Louis to Tropicana St. Louis LLC.
The divestiture resolved concerns that Pinnacle’s acquisition of Ameristar Casinos would substantially reduce casino competition in St. Louis.
Department of Justice Challenges Bazaarvoice Acquisition of PowerReviews
January 09, 2014
The U.S. Department of Justice stated that Bazaarvoice’s acquisition of PowerReviews violated antitrust laws.
The Department alleged that the transaction eliminated Bazaarvoice’s only significant competitor.
TeleCheck Agrees to Pay $3.5 Million for FCRA Violations
January 16, 2014
TeleCheck Services Inc. and TRS Recovery Services agreed to pay $3.5 million to settle Federal Trade Commission allegations relating to Fair Credit Reporting Act violations.
Department of Justice Closes Samsung Standards-Essential Patent Investigation
February 07, 2014
The U.S. Department of Justice closed its investigation into Samsung Electronics’ use of standards-essential patents.
The investigation related to Samsung’s licensing obligations on fair, reasonable and non-discriminatory terms.
South American Shipping Company Pleads Guilty to Price Fixing
February 27, 2014
Compañía Sud Americana de Vapores S.A. agreed to plead guilty and pay an $8.9 million criminal fine for conspiracy involving:
- Price fixing
- Bid rigging
- Customer allocation
The conduct related to international ocean shipping services for vehicles.
CCI Approves Mahindra Engineering and Tech Mahindra Amalgamation
January 07, 2014
The Competition Commission approved amalgamation of Mahindra Engineering Services Limited with Tech Mahindra Limited.
The transaction involved transfer of all undertakings and business operations of MES into Tech Mahindra.
CCI Approves GE Acquisition of GMC Consolidation
February 20, 2014
The Competition Commission approved General Electric Company’s acquisition of GMC Consolidation LLC from Thermo Fisher Scientific Inc.
CCI Approves Lenovo Acquisition of IBM x86 Server Business
March 20, 2014
The Competition Commission approved Lenovo Group Limited’s acquisition of IBM’s x86 server business.
The transaction included transfer of:
- Assets
- Contracts
- Employees
- Associated business operations
The CCI observed that Lenovo was not previously active in the server market in India.
CCI Amends Combination Regulations
March 28, 2014
The Competition Commission amended Combination Regulations to simplify filing requirements and reduce compliance burdens.
The amendments included:
- Revision of filing fees
- Relaxation of filing requirements
- Clarification regarding substance over structure
- Deletion of Regulation 29
UNITED KINGDOM – OFFICE OF FAIR TRADING (‘OFT’)
OFT Consults on Automotive Platform Services Commitments
March 10, 2014
The OFT initiated consultation on commitments proposed by epyx Limited regarding service, maintenance and repair platforms in the UK automotive sector.
OFT Refers Adherence Packaging Merger to Competition Commission
March 14, 2014
The OFT referred Omnicell’s anticipated acquisition involving adherence packaging products to the Competition Commission.
The referral was based on concerns relating to:
- Possible increase in prices
- Reduction in service quality
- Impact on pharmacies
OFT Refers Healthcare Product Merger to Competition Commission
March 24, 2014
The OFT referred Alliance Medical Limited’s acquisition of FDG-18 manufacturing assets from IBA Molecular UK Limited.
The authority identified concerns regarding:
- Increase in prices
- Decline in reliability of supplies
- Reduced competition in South England
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The information in this private circulation is not legal advice and should not be treated as such.
The information is taken from public domain and is purely for private and non-commercial purposes.
We do not represent that the information is correct, accurate, complete or non-misleading.
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