UNITED KINGDOM – COMPETITION AND MARKETS AUTHORITY (‘CMA’)
EVO Business Supplies Limited / Office2Office plc Merger
November 14, 2014
The Competition and Markets Authority (CMA) reviewed the anticipated acquisition of Office2Office plc (O2O) by EVO Business Supplies Limited, a wholly owned subsidiary of Endless LLP, which also controlled Vasanta Group Limited.
The parties were active in the supply of business services, including office stationery, through wholesale and contract stationery channels.
The CMA examined whether the transaction would result in a substantial lessening of competition in the United Kingdom.
- Overlap in wholesale business supplies
- Overlap in contract stationery services
- Moderate combined market share
- Presence of several strong competitors
The CMA concluded that the merger would not result in a realistic prospect of substantial lessening of competition and cleared the transaction.
EUROPEAN UNION – EUROPEAN COMMISSION
Smart Card Chips Cartel
September 03, 2014
The European Commission found that Infineon, Philips, Samsung and Renesas coordinated their market behaviour for smart card chips in the European Economic Area.
The companies exchanged commercially sensitive information and coordinated responses to customer demands for price reductions.
- Price coordination
- Customer-related discussions
- Contract negotiation strategies
- Future market conduct planning
The Commission imposed fines totaling €138,048,000 for violation of Article 101 TFEU and Article 53 of the EEA Agreement.
Slovak Telekom & Deutsche Telekom Broadband Abuse Case
October 15, 2014
The European Commission fined Slovak Telekom and Deutsche Telekom for abusing a dominant position in the Slovak broadband services market.
Slovak Telekom imposed unfair conditions on competitors seeking access to its local loops and engaged in margin squeeze practices.
- Refusal of network access
- Unfair access conditions
- Margin squeeze practices
- Restriction of market entry
The Commission imposed a fine of €38,838,000 for violations of Article 102 TFEU.
REPUBLIC OF INDIA – ANTI-COMPETITIVE AGREEMENTS & ABUSE OF DOMINANT POSITION
Indian Sugar Mills Association & Others v. Indian Jute Mills Association & Others
MANU/CO/0092/2014
The Informants alleged anti-competitive conduct by Indian Jute Mills Association (IJMA) and Gunny Trade Association (GTA) relating to fixation of jute packaging prices.
The Commission found evidence of tacit agreements and coordinated price determination through publication of Daily Price Bulletins.
- Price fixing
- Control of market prices
- Coordinated market behaviour
- Restriction of competition
The Commission imposed penalties on the associations and their office bearers and directed them to cease and desist from anti-competitive conduct.
Collective Boycott by Chemists & Druggists Association, Goa
MANU/CO/0086/2014
The Commission examined allegations that Chemists & Druggists Association, Goa (CDAG) continued anti-competitive practices despite an earlier Commission order.
CDAG was found to have pressured pharmaceutical companies and stockists to stop dealing with the Informant.
- Collective boycott
- Refusal to deal
- Supply restrictions
- Cartel-like conduct
The Commission directed CDAG to cease and desist and imposed a penalty of INR 10,62,062.
Shri Bijay Poddar v. Coal India Limited & Subsidiaries
MANU/CO/0087/2014
The Informant challenged provisions of the Spot e-Auction Scheme 2007 introduced by Coal India Limited.
The Commission held that forfeiture provisions imposed unfair obligations on bidders without corresponding liabilities on Coal India.
- Unfair contractual conditions
- Forfeiture of EMD
- Abuse of dominant position
- One-sided obligations
The Commission directed modification of the Scheme and issued a cease and desist order.
Sai Wardha Power Company Ltd. v. Western Coalfields Ltd.
MANU/CO/0085/2014
The Informant alleged that Coal India and its subsidiaries imposed unfair Fuel Supply Agreements for supply of non-coking coal.
The Commission found that the Opposite Parties held dominant positions in the market and imposed unfair contractual conditions.
- Unfair Fuel Supply Agreements
- Dominant position abuse
- Lack of bargaining power
- Unilateral contract terms
The Commission directed modification of the Fuel Supply Agreements and ordered the parties to cease anti-competitive conduct.
HT Media Limited v. Super Cassettes Industries Limited
MANU/CO/0080/2014
HT Media alleged abuse of dominant position by Super Cassettes Industries Limited in licensing music content for radio broadcasting.
The allegations concerned excessive royalty charges and mandatory minimum commitment charges.
- Excessive royalty demands
- Minimum commitment charges
- Unfair licensing conditions
- Restriction of market access
The Commission imposed a penalty of INR 2,83,28,000 and directed removal of unfair contractual conditions.
MARKET DEVELOPMENTS
AT&T Mobility LLC – Mobile Data Services
October 28, 2014
The Federal Trade Commission filed a complaint against AT&T Mobility alleging deceptive conduct relating to “unlimited” mobile data plans.
The FTC alleged that AT&T throttled customer data speeds while continuing to market plans as unlimited.
- Misleading advertising
- Data throttling practices
- Consumer deception
- Early termination fees
The complaint was filed before the U.S. District Court for the Northern District of California.
Worldwide Info Services, Inc.
November 13, 2014
The FTC and Florida Attorney General secured a settlement shutting down an operation targeting senior citizens through deceptive robocalls.
The company falsely claimed that consumers were entitled to free medical alert systems.
- Deceptive robocalls
- Misleading sales practices
- Telemarketing violations
- Consumer fraud
The settlement permanently prohibited robocalls and deceptive telemarketing activities.
AmeriGas and Blue Rhino
November 07, 2014
The FTC alleged that AmeriGas and Blue Rhino coordinated reductions in propane tank fill levels sold to customers.
The companies agreed to settle charges without admitting wrongdoing.
- Price coordination
- Reduced product quantity
- Consumer harm
- Restriction of competition
The settlement prohibited coordination regarding fill levels, pricing and customer communications.
Sun Pharma – Ranbaxy Merger Review
Republic of India
The Competition Commission of India continued reviewing the proposed $4 billion merger between Sun Pharma and Ranbaxy Laboratories.
The transaction attracted significant scrutiny due to concerns regarding adverse effects on competition in the pharmaceutical sector.
UK Retail Banking Market Investigation
United Kingdom
The CMA announced a full market investigation into retail banking services.
The investigation focused on concerns including:
- Low customer switching rates
- Difficulty comparing banking products
- Barriers to entry for new banks
- Market concentration among major banks
The CMA noted that the four largest banks controlled approximately 77% of personal current accounts and 85% of business current accounts.
Huntsman / Rockwood Chemical Businesses Acquisition
September 10, 2014
The European Commission approved Huntsman Corporation’s acquisition of several chemical businesses owned by Rockwood Specialties Group.
The approval was subject to divestment of Huntsman’s TR52 titanium dioxide business.
The commitments addressed concerns relating to competition in titanium dioxide products used in printing ink applications.
Cemex Acquisition of Holcim Assets
September 09, 2014
The European Commission approved Cemex’s acquisition of Holcim’s Spanish operations.
The Commission concluded that sufficient competition would remain in cement and construction materials markets.
Facebook Acquisition of WhatsApp
October 03, 2014
The European Commission approved Facebook’s acquisition of WhatsApp.
The Commission found that Facebook Messenger and WhatsApp were not close competitors and that consumers would continue to have access to numerous alternative communication applications.
Doc ID: CL/11/14
