INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
CCI Dismisses Anti-Competitive Allegations Against Tata Housing Development Co. Ltd.
August 10, 2017
Capt. Deepak Shrikrishnarao Satam filed information alleging abuse of dominant position by Tata Housing Development Co. Ltd. in relation to a residential housing project in Pune, Maharashtra.
The Informant alleged that buyers were compelled to sign one-sided agreements containing unfair and ambiguous terms relating to:
- Price of flats
- Sale of car parking spaces
- Charges for approvals and drawings
- Area calculations of flats
- Refund of deposits and collected amounts
It was further alleged that the Opposite Party failed to provide the Occupation Certificate, causing financial losses to buyers.
The Competition Commission examined the real estate market in Pune and observed that Tata Housing faced significant competition from several established developers and smaller market participants.
The CCI concluded that Tata Housing was not dominant in the relevant market and therefore no contravention of the Competition Act was made out.
CCI Dismisses Allegations of Cartelization Against Various Banks in India
August 23, 2017
Mr. Kush Kalra filed information alleging cartelization among various banks in India regarding terms and conditions governing safety deposit lockers.
The Informant alleged that banks uniformly required customers to sign agreements disclaiming liability for loss or damage to articles kept in lockers.
The banks involved included:
- State Bank of India
- Punjab National Bank
- Canara Bank
- Bank of Baroda
- IDBI Bank
- Union Bank of India
- Allahabad Bank
- Indian Overseas Bank
The Informant argued that the banks collectively followed identical practices and therefore formed a cartel.
The Competition Commission observed that common industry practices arising from independent business decisions do not automatically indicate collusion.
As no material evidence of any agreement between the banks was produced, the CCI closed the matter under Section 26(2) of the Competition Act.
UNITED KINGDOM (‘UK’) – COMPETITION AND MARKET AUTHORITY (‘CMA’)
CMA Clears Unilever in Suspected Abuse of Dominant Position Investigation
August 10, 2017
The Competition and Market Authority investigated promotional schemes offered by Unilever plc in the supply of single-wrapped impulse ice cream products in the United Kingdom.
The CMA examined whether promotional offers provided incentives for retailers to purchase substantial quantities from Unilever, thereby restricting competitors’ access to freezer space and limiting competition.
The investigation focused on promotional practices including:
- Free supply of products
- Discounted product offers
- Minimum purchase commitments
- Retail freezer exclusivity concerns
After reviewing market evidence and retailer purchasing patterns, the CMA concluded that Unilever’s promotional arrangements were unlikely to produce exclusionary effects in the frozen dessert market.
The investigation was therefore closed without any finding of anti-competitive conduct.
UNITED STATES OF AMERICA (‘U.S.A.’) – FEDERAL TRADE COMMISSION (‘FTC’)
FTC Approves Final Order to Preserve Competition in U.S. Pharmaceutical Market
August 30, 2017
The Federal Trade Commission approved a final order addressing anti-competitive concerns arising from Baxter International’s proposed acquisition of Claris Lifesciences Preserves Inc.
The FTC observed that the acquisition would likely reduce competition in the United States markets for:
- Fluconazole in saline intravenous bags
- Intravenous milrinone products
The FTC noted that Baxter and Claris together accounted for nearly 60% market share in fluconazole intravenous products.
It was also observed that the acquisition would eliminate a potential future competitor in the intravenous milrinone market.
The FTC concluded that the transaction could result in higher drug prices and reduced competition.
To address these concerns, the parties agreed to divest all rights relating to fluconazole and milrinone intravenous bag products to Renaissance Lakewood LLC.
MARKET DEVELOPMENTS
FTC Orders Mars to Divest Veterinary Clinics as Condition for Acquiring VCA Inc.
August 30, 2017
Mars Incorporated agreed to divest twelve veterinary clinics in connection with its proposed $9.1 billion acquisition of VCA Inc.
Both Mars and VCA operated specialty and emergency veterinary clinics across the United States.
The FTC alleged that the acquisition could substantially lessen competition in multiple local markets by eliminating direct competition between the parties.
The Commission also noted that barriers to entry in specialty veterinary services were high due to the requirement for specialist veterinarians and infrastructure.
Under the consent order, Mars was required to:
- Divest 12 veterinary clinics
- Secure third-party approvals and transfers
- Provide incentives to retain key employees
- Avoid acquiring additional clinics in certain regions without FTC notification
The FTC approved the transaction subject to compliance with these conditions.
Exemption Granted to Regional Rural Banks Under Competition Act
August 10, 2017
The Central Government exempted Regional Rural Banks from the applicability of Sections 5 and 6 of the Competition Act in relation to notifications issued under Section 23A(1) of the Regional Rural Banks Act, 1976.
The exemption was granted under Section 54(a) of the Competition Act.
The exemption remained valid for a period of five years from publication in the Official Gazette.
Exemption Granted to Nationalized Banks Under Competition Act
August 30, 2017
The Central Government exempted cases involving reconstitution, transfer and amalgamation of nationalized banks from Sections 5 and 6 of the Competition Act.
The exemption applied to transactions under:
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
The exemption remained effective for ten years from publication in the Official Gazette.
CMA Approves Proposed Merger of Birmingham Hospital Trusts
August 30, 2017
The Competition and Market Authority reviewed the proposed merger between Heart of England NHS Foundation Trust and University Hospitals Birmingham NHS Foundation Trust.
Although the CMA initially identified competition concerns across elective healthcare specialties, NHS Improvement advised that HEFT had experienced serious operational and governance difficulties since 2012.
The investigation found that management intervention by UHB had already improved:
- Waiting times
- Quality of patient care
- Safety standards
- Operational efficiency
The CMA concluded that the merger benefits outweighed potential competition concerns and approved the transaction.
European Commission Approves Acquisition of Pelican Rouge by Selecta
August 25, 2017
The European Commission approved Selecta’s acquisition of Pelican Rouge subject to divestiture commitments.
Both parties operated vending machine services across Europe in public and private locations.
The EC examined overlaps in multiple European markets including:
- Belgium
- Finland
- France
- Ireland
- Netherlands
- Spain
- Norway
- United Kingdom
The Commission found significant competition concerns only in Finland where the combined market share was high.
To resolve the concerns, Selecta agreed to divest all vending service activities in Finland.
The EC concluded that the divestiture would fully eliminate overlap and restore market competition.
European Commission Opens Investigation into Bayer’s Acquisition of Monsanto
August 22, 2017
The European Commission initiated detailed investigations into Bayer’s proposed acquisition of Monsanto.
Bayer and Monsanto were both major global participants in crop protection products, seeds, biotechnology traits and digital agriculture technologies.
The EC expressed concerns that the acquisition could result in:
- Higher prices
- Reduced innovation
- Reduced consumer choice
- Lower quality products
The Commission observed that the transaction would create the world’s largest integrated pesticides and seeds company.
Although Bayer and Monsanto proposed commitments to address preliminary concerns, the EC found them insufficient and continued its investigation.
IN-HOUSE CONTRIBUTORS
Avsi Malik Sharma
Parnika Medhekar
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Doc ID: CL/22/17
