EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Binds Bulgarian Energy Holding to Commitments
December 10, 2015
The European Commission initiated formal proceedings against Bulgarian Energy Holding (‘BEH’) for alleged abuse of dominant position in the wholesale electricity market in Bulgaria.
The Commission investigated concerns relating to:
- Sale of electricity at non-regulated prices
- Territorial restrictions on resale of electricity
- Restrictions in electricity supply agreements
To address the concerns, BEH agreed to:
- Establish a power exchange with assistance from an independent third party
- Transfer ownership control of the exchange to the Bulgarian Ministry of Finance
- Offer minimum electricity volumes on the Bulgarian power exchange for five years
- Sell electricity in the day-ahead market at capped prices linked to marginal costs
The European Commission made these commitments legally binding under Article 9 of Regulation 1/2003.
The Commission further stated that violation of the commitments could result in fines up to 10% of BEH’s worldwide turnover.
UNITED STATES OF AMERICA – FEDERAL TRADE COMMISSION (‘FTC’)
FTC Requires Divestiture of Generic Tablet Assets in Endo-Par Merger
November 10, 2015
The FTC approved a final order settling charges relating to Endo International plc’s acquisition of Par Pharmaceuticals, Inc.
The Commission observed that the $8 billion merger would combine the two most significant suppliers of:
- Generic glycopyrrolate tablets
- Generic methimazole tablets
The products were used to treat:
- Certain types of ulcers
- Excess thyroid hormone production
The FTC concluded that the merger would likely lead to higher consumer prices.
To resolve concerns, Endo agreed to divest its U.S. rights and assets relating to the products to Rising Pharmaceuticals.
Endo was also required to:
- Supply products to Rising for two years
- Transfer manufacturing technology
- Provide technical assistance and training
Step N Grip Settles FTC Charges Relating to Price Coordination
December 07, 2015
The FTC approved a final order against Step N Grip, LLC relating to allegations of invitation to collude on pricing of rug accessories sold through Amazon.com.
The FTC found that Step N Grip approached its closest competitor proposing agreements to:
- Fix prices
- Raise prices
- Coordinate pricing strategies
The competitor reported the conduct to the FTC.
The order prohibited Step N Grip from:
- Communicating with competitors about prices
- Entering into market allocation agreements
- Fixing prices with competitors
- Reducing services through coordinated conduct
The order will remain effective for twenty years.
REPUBLIC OF INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
Express Industry Council of India v. Jet Airways (India) Ltd. & Ors.
Case No. 30 of 2013 | November 17, 2015
The Informant alleged cartelization by major airlines in determination of fuel surcharge (‘FSC’) for cargo transportation.
The allegations were made against:
- Jet Airways
- InterGlobe Aviation (IndiGo)
- SpiceJet
- Air India
- Go Airlines
The CCI observed that FSC charges were increased simultaneously despite absence of corresponding increase in Aircraft Turbine Fuel prices.
The Commission held that coordinated timing of FSC hikes indicated concerted conduct and prior information exchange.
Penalties amounting to 1% of average turnover were imposed on:
- Jet Airways
- IndiGo
- SpiceJet
Air India and Go Airlines were exonerated.
Mr. P. K. Krishnan v. Alkem Laboratories Ltd. & Ors.
Case No. 28 of 2014 | December 01, 2015
The matter concerned refusal by Alkem Laboratories to appoint the Informant as stockist because he failed to obtain a “No Objection Certificate” from the All Kerala Chemists and Druggists Association.
The CCI observed that denial of supply of pharmaceutical products adversely affected competition in the market.
The Commission held that:
- Refusal of supply was anti-competitive
- Pharmaceutical companies cannot rely on trade association restrictions
- The conduct violated prior CCI directions
The CCI issued cease and desist orders and imposed penalties on the parties and their office bearers under Section 48 of the Competition Act.
Shri Raghavendra Singh v. Reliance Industries Ltd.
Case No. 91 of 2015 | November 17, 2015
The Informant alleged that Reliance Industries abused its dominant position in the petroleum refining and marketing sector by exporting refined petroleum products.
The relevant market was defined as:
- Retail sale of petroleum products in India
The CCI observed that public sector oil marketing companies held approximately 94.44% of retail outlets in India, whereas private players had minimal presence.
The Commission concluded that Reliance Industries did not hold a dominant position in the relevant market.
Accordingly, no contravention of Section 4 of the Competition Act was established.
MARKET DEVELOPMENTS
FTC Challenges Staples Acquisition of Office Depot
December 07, 2015
The FTC filed a complaint challenging Staples Inc.’s proposed $6.3 billion acquisition of Office Depot, Inc.
The Commission alleged that the acquisition would significantly reduce competition in the market for sale of consumable office supplies to large business customers.
The FTC observed that:
- Staples and Office Depot were each other’s closest competitors
- The merger would likely increase prices
- The merger could reduce service quality
- New market entry would not sufficiently offset anti-competitive effects
The FTC initiated proceedings under Section 7 of the Clayton Act and Section 5 of the FTC Act.
CCI Reviews Sun Pharma – Ranbaxy Merger
Merger Development
The Competition Commission of India reviewed the proposed $4 billion merger between Sun Pharma and Ranbaxy.
The transaction attracted public scrutiny due to concerns regarding possible appreciable adverse effect on competition in pharmaceutical markets.
The merger was expected to create India’s largest pharmaceutical company.
Nikkei / Financial Times Group Merger Inquiry
November 16, 2015
The Competition and Markets Authority cleared the merger between Nikkei and Financial Times Group.
The CMA examined overlaps in:
- Supply of newspapers and magazines
- Financial market data services
The authority concluded that the merger would not result in substantial lessening of competition because the parties supplied differentiated products and Nikkei had limited presence in the UK market.
Betfair Group / Paddy Power Merger Inquiry
December 29, 2015
The Competition and Markets Authority reviewed the merger between Betfair Group and Paddy Power.
The investigation focused on:
- Online betting services
- Online gaming services
- Business-to-business betting exchange data services
The CMA observed that the merged entity would continue to face strong competition from several alternative providers.
The authority concluded that the transaction would not give rise to substantial lessening of competition.
European Commission Clears Goldman Sachs / Wellcome Trust Joint Venture
December 22, 2015
The European Commission approved creation of a joint venture between Goldman Sachs Group, Inc. and The Wellcome Trust Limited.
The joint venture combined the parties’ UK student accommodation businesses operating under:
- Prodigy Living
- iQ Student
The Commission concluded that the transaction would not raise competition concerns because of its limited impact on market structure.
The merger was approved under the simplified merger review procedure.
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Doc ID: CL/12/16
