EUROPEAN UNION
Antitrust: Commission fines Servier and five generic companies for curbing entry of cheaper versions of cardiovascular medicine
July 09, 2014
Through a technology acquisition and a series of patent settlements with generic rivals, Servier implemented a strategy to exclude competitors and delay the entry of cheaper generic medicines.
- Acquisition of patent-free technology to delay generic entry
- Patent settlements with generic competitors
- Generic companies agreed to abstain from competing
- Violation of Articles 101 and 102 TFEU
The European Commission imposed fines totalling €427.7 million on Servier and five generic medicine producers.
Case AT.39097 – Watch Repair
July 29, 2014
The European Commission closed its antitrust investigation into the supply of spare parts and repair services for luxury/prestige watches.
- Complaint filed by CEAHR
- Investigation into spare parts supply restrictions
- Assessment under Articles 101 and 102 TFEU
- Limited likelihood of finding infringement
The Commission decided to close its antitrust probe.
REPUBLIC OF INDIA
Faridabad Industries Association v. M/s Adani Gas Limited
July, 2014
The matter concerned allegations that Adani Gas Limited abused its dominant position in the supply and distribution of natural gas in Faridabad.
- Unfair and unilateral Gas Sales Agreement terms
- Dominance in the relevant market of Faridabad
- Unfair payment, force majeure and termination clauses
- Contravention of Section 4(2)(a)(i) of the Competition Act
The Commission ordered modification of the GSA and imposed penalty at 4% of average turnover of the last three years.
Shri Shamsher Kataria v. Honda Siel Cars India Ltd. & Ors.
August, 2014
The informant alleged anti-competitive practices relating to the availability of automobile spare parts, diagnostic tools and technical information.
- Restriction on genuine spare parts in the open market
- Dependence on authorised workshops and service stations
- Restriction on independent repair workshops
- Contravention of Sections 3 and 4 of the Competition Act
The Commission imposed penalty of 2% of total turnover in India and directed the parties to ensure availability of spare parts and diagnostic tools.
In re: Collective boycott/refusal to deal by the Chemists & Druggists Association, Goa
MANU/CO/0086/2014
The case concerned non-compliance with a previous Commission order and continued anti-competitive conduct by CDAG.
- Collective boycott and refusal to deal
- Pressure on pharmaceutical companies
- Restriction of supply through non-authorised stockists
- Continuation of anti-competitive practices
The Commission directed CDAG to cease and desist and imposed a penalty of INR 10,62,062.
Shri Bijay Poddar v. M/s Coal India Limited and its subsidiaries
MANU/CO/0087/2014
The informant alleged that the terms and conditions of the Spot e-Auction Scheme 2007 introduced by Coal India Limited and its subsidiaries were unfair.
- Arbitrary forfeiture clause under the scheme
- Penalty on buyers for non-lifting of coal
- No corresponding liability on opposite parties
- Contravention of Section 4(2)(a)(i) of the Competition Act
The Commission issued a cease and desist order and directed suitable modification of the scheme.
M/s Sai Wardha Power Company Ltd. v. M/s Western Coalfields Ltd.
MANU/CO/0085/2014
The matter concerned allegations of abuse of dominant position in relation to Fuel Supply Agreements for coal supply.
- Virtual monopoly over production and supply of coal
- One-sided Fuel Supply Agreements
- Lack of bargaining power for power producers
- Unfair conditions under Section 4(2)(a)(i)
The Commission directed the opposite parties to cease and desist and make necessary modifications in the FSAs.
M/s HT Media Limited v. M/s Super Cassettes Industries Limited
MANU/CO/0080/2014
HT Media alleged abuse of dominant position by Super Cassettes in relation to music licensing for its Fever 104 radio station.
- Excessive licence fees and royalty
- Minimum commitment charges
- Unfair licensing conditions
- Restriction of market access for other music companies
The Commission directed modification of unfair conditions and imposed a penalty of INR 2,83,28,000.
UNITED STATES OF AMERICA
Justice Department requires divestiture in Landmark Aviation’s Acquisition of Ross Aviation
July 30, 2014
The Department of Justice required Landmark Aviation to divest fixed base operator assets used to provide flight support services at Scottsdale Municipal Airport.
- Acquisition value of $330 million
- Combination of the only two FBOs at Scottsdale Municipal Airport
- Concerns over higher prices
- Concerns over lower quality of services
The divestiture was required for the transaction to proceed.
Justice Department requires divestiture in Tyson Foods Inc.
August 27, 2014
The Department of Justice required Tyson Foods Inc. to divest Heinold Hog Markets to proceed with its acquisition of The Hillshire Brands Company.
- Acquisition value of $8.5 billion
- Concern over reduced competition in sow purchases
- Combination of major purchasers of sows
- Divestiture of Heinold Hog Markets required
The divestiture was required to preserve competition for purchases from U.S. farmers.
EUROPEAN UNION
Mergers: Commission approves acquisition of ONO by Vodafone
July 02, 2014
The European Commission cleared Vodafone Group Plc’s proposed acquisition of Grupo Corporativo ONO under the EU Merger Regulation.
- Both companies provide telecom services in Spain
- ONO mainly active in fixed telecommunications
- Vodafone mainly active in mobile telecommunications
- Activities found to be largely complementary
The Commission concluded that the transaction would not raise competition concerns.
Commission sends Statement of Objections to Bulgarian Energy Holding
August 12, 2014
The European Commission informed Bulgarian Energy Holding of its preliminary view regarding territorial restrictions in electricity supply contracts.
- Restrictions on resale by electricity traders
- Limitations on purchaser freedom
- Suspected abuse of dominant position
- Potential breach of Article 102 TFEU
The Commission considered the territorial restrictions as potentially abusive.
Mergers: Commission clears acquisition of parts of Rolls-Royce by Siemens
August 04, 2014
The Commission authorised Siemens’ proposed acquisition of parts of Rolls-Royce’s aero-derivative gas turbine and related businesses.
- Aero-derivative gas turbine business included
- Compressor activities and aftermarket services included
- Rolls-Royce’s 50% stake in Rolls Wood Group included
- No significant competition concerns identified
The transaction was cleared under the EU Merger Regulation.
Mergers: Commission clears acquisition of Rautaruukki by SSAB, subject to conditions
July 15, 2014
The European Commission cleared SSAB’s proposed acquisition of Rautaruukki subject to divestment conditions.
- Both companies produce and distribute carbon steel products
- Concerns in Nordic carbon steel markets
- Concerns in stainless steel and profiled steel sheets in Finland
- Divestment of five businesses required
The divestments addressed the Commission’s competition concerns.
UNITED KINGDOM
CMA clears Alliance’s acquisition of IBA business assets
August 15, 2014
The CMA cleared Alliance Medical Group Limited’s acquisition of assets of the IBA business used to produce a radioactive tracer for cancer diagnosis.
- Supply of Fluorodeoxyglucose 18F
- Used in PET-CT scans
- IBA business was consistently loss-making
- No alternative purchaser identified
The CMA cleared the acquisition after considering the weak competitive position of the IBA business.
REPUBLIC OF INDIA
Competition Commission of India approves merger of United Stock Exchange of India with Bombay Stock Exchange
July 30, 2014
The CCI approved the merger of United Stock Exchange of India Limited with Bombay Stock Exchange Limited.
- Combination under Sections 391 to 394 of the Companies Act, 1956
- Overlap in the currency derivatives segment
- BSE operates across multiple exchange segments
- USE operates only in the currency derivatives segment
The Commission held that the combination was not likely to have an appreciable adverse effect on competition in India.
Historical Note on Statute of Labourers
1349
Under King Edward III, the Statute of Labourers of 1349 fixed wages of artificers and workmen and directed that foodstuffs should be sold at reasonable prices.
- Fixed wages for artificers and workmen
- Directed reasonable pricing for foodstuffs
- Overcharging merchants had to pay double the sum received
- The idea was later reflected in punitive treble damages under US antitrust law
This historical note highlights early legal thinking around pricing and penalties for overcharging.
