REPUBLIC OF INDIA
CCI Dismisses Allegations of Anti-Competitive Conduct Against Dhanlaxmi Bank Limited
Case No. 66/2016 | February 21, 2017
The Informant alleged that Dhanlaxmi Bank Limited unfairly increased the floating interest rate on loans when the Reserve Bank of India increased the repo rate but failed to reduce the interest rate when the repo rate was subsequently reduced.
It was further alleged that the bank imposed a pre-payment penalty of 2% when the Informant closed the loan account after the bank refused to reduce the interest rate.
The Competition Commission of India defined the relevant market as:
- Market for provision of loan against property in Delhi
The Commission observed that Dhanlaxmi Bank was a relatively small market participant and faced competition from major banks including:
- State Bank of India
- HDFC Bank
- ICICI Bank
Since the bank was not dominant in the relevant market, the CCI held that no abuse of dominant position was established and dismissed the case.
CCI Finds DLF Group Guilty of Abuse of Dominant Position
Case No. 1/2014 | January 04, 2017
The Informant alleged that DLF Group imposed arbitrary, unfair and unreasonable conditions upon apartment buyers through apartment buyer agreements relating to the “New Town Heights” housing project in Gurgaon.
The allegations included:
- Right to forfeit Earnest Money Deposit without notice
- No fixed possession schedule
- One-sided and non-negotiable agreement terms
- Unfair contractual clauses favouring the developer
The Competition Commission defined the relevant market as:
- Provision of services for development and sale of residential apartments in Gurgaon
The CCI referred to its earlier decisions including Belaire Owner’s Association v. DLF Limited and held that the imposed terms were abusive under Section 4(2)(a)(i) of the Competition Act.
Since penalties had already been imposed in earlier proceedings against DLF Group, the Commission issued only a cease and desist direction in the present matter.
EUROPEAN UNION – EUROPEAN COMMISSION (‘EC’)
European Commission Fines Three Companies €68 Million for Car Battery Recycling Cartel
February 08, 2017
The European Commission imposed fines totaling €68 million on companies involved in a cartel concerning recycling of scrap lead-acid automotive batteries.
The companies involved were:
- Campine Recycling
- Eco-bat Technologies
- Johnson Controls
- Recyclex SA
The cartel operated between 2009 and 2012 across:
- Belgium
- France
- Germany
- Netherlands
Unlike traditional cartels aimed at increasing sale prices, the companies colluded to lower the purchase price paid to scrap battery dealers and collectors.
The Commission observed that the conduct harmed small and medium-sized collectors and distorted normal market competition.
Johnson Controls received complete immunity for revealing the cartel to the European Commission.
UNITED STATES OF AMERICA (‘US’) – FEDERAL TRADE COMMISSION (‘FTC’)
FTC Approves Final Order Preserving Competition for Physician Services in Minnesota
January 06, 2017
The Federal Trade Commission approved a final order relating to CentraCare Health System’s acquisition of St. Cloud Medical Group.
The FTC observed that the acquisition would combine two major providers of:
- Adult primary care services
- Pediatric services
- OB/GYN services
The Commission concluded that the merger could increase CentraCare’s bargaining power with commercial health plans and potentially reduce healthcare quality and service benefits.
Under the settlement order, CentraCare agreed to:
- Allow physicians to leave the health system
- Permit establishment of competing local practices
- Provide financial incentives to departing physicians
MARKET DEVELOPMENTS
FTC Files Complaint Against Qualcomm for Anti-Competitive Practices
January 17, 2017
The Federal Trade Commission filed a complaint alleging anti-competitive conduct by Qualcomm Inc., the dominant supplier of baseband processors used in cell phones.
The FTC alleged that Qualcomm:
- Maintained a “No License, No Chips” policy
- Refused to license standard-essential patents to competitors
- Extracted exclusivity commitments from Apple
The Commission argued that Qualcomm’s practices imposed an anti-competitive tax on manufacturers using rival processors.
The FTC sought court orders directing Qualcomm to cease anti-competitive conduct and restore competitive conditions.
FTC Approves Enbridge and Spectra Merger Subject to Conditions
February 16, 2017
Enbridge Inc. and Spectra Energy Corp. agreed to settle FTC charges concerning competition in offshore natural gas pipeline transportation markets.
The FTC investigation focused on production areas in the Gulf of Mexico including:
- Green Canyon
- Walker Ridge
- Keathley Canyon
The Commission alleged that the merger would increase Enbridge’s influence over competing pipeline operations and potentially increase transportation costs.
Under the consent order, Enbridge agreed to:
- Establish firewalls protecting confidential information
- Notify FTC before acquiring additional ownership interests
- Comply with monitoring obligations for 20 years
CCI Approves Acquisition of Ibibo by MakeMyTrip
C-2016/10/451 | January 18, 2017
The Competition Commission approved acquisition of 100% shareholding of Ibibo Group Holdings by MakeMyTrip Limited.
The CCI observed that travel services in India were offered through:
- Travel agencies
- Direct suppliers
- Online travel aggregators
The relevant market was defined as:
- Sale of travel and travel related services in India
The Commission noted that the combined market share of the parties was less than 11% and that several competitors continued to operate in the market.
Accordingly, the transaction was approved.
CCI Approves Acquisition of Titawi Sugar Complex by Indian Potash Limited
C-2016/12/466 | January 31, 2017
The Competition Commission approved acquisition of Titawi Sugar Complex from Mawana Sugar Limited by Indian Potash Limited.
The Commission observed horizontal overlap in:
- Sugar manufacturing
- Molasses production
- Bagasse production
- Press mud production
However, the CCI concluded that the parties had insignificant market presence and faced competition from numerous other market participants.
The combination was therefore approved.
Dover Corporation / Wayne Fueling Systems Merger Inquiry
December 19, 2016
The Competition and Market Authority reviewed Dover Corporation’s acquisition of Wayne Fueling Systems Ltd.
The inquiry examined competition in:
- Fuel dispensers
- Aftermarket maintenance services
- Forecourt systems
- Tank gauges
- Payment systems
CMA observed that the merger would significantly reduce competition in the UK fuel dispenser market.
To address the concerns, Dover agreed to divest Wayne’s distribution business to Petrotec S.G.P.S. S.A.
Following the undertaking, the merger was not referred for detailed investigation.
EC Clears Acquisition of Alere Inc. by Abbott Laboratories Subject to Commitments
January 25, 2017
The European Commission approved Abbott Laboratories’ acquisition of Alere Inc. after reviewing overlaps in in-vitro diagnostics systems.
The investigation focused on:
- Point-of-care analysers
- Blood gas testing systems
- Cardiac marker testing
- BNP testing technologies
To address concerns, Abbott agreed to:
- Divest Alere’s Epoc business
- Divest Alere’s Triage business
- Divest BNP business operations connected with Danaher Corporation
The commitments fully addressed the concerns raised by the Commission and the merger was approved.
EC Approves Acquisition of ABB High Voltage Cable Business by NKT
February 27, 2017
The European Commission approved acquisition of ABB’s High Voltage Cable Business by NKT Holdings A/S.
The investigation focused on competition relating to:
- AC submarine power cables
- DC submarine power cables
- High voltage power cable accessories
The Commission observed that strong competitors would remain in the market post-transaction, including recent entrants from Asia.
Accordingly, the transaction was approved without conditions.
IN-HOUSE CONTRIBUTORS
Anand Sree
Avsi Malik Sharma
DISCLAIMER
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.
This disclaimer will be governed by and construed in accordance with laws of India, and any disputes relating to this disclaimer will be subject to the exclusive jurisdiction of the courts of the Republic of India.
Doc ID: CL/19/17
