EUROPEAN UNION – EUROPEAN COMMISSION (‘EC’)
EC Fines Crédit Agricole, HSBC and JPMorgan Chase €485 Million in Euro Interest Rate Derivatives Cartel
December 07, 2016
The European Commission fined Crédit Agricole, HSBC and JPMorgan Chase a total of €485 million for participating in a cartel relating to euro interest rate derivatives.
The investigation revealed that the banks colluded on pricing elements and exchanged commercially sensitive information in breach of EU competition laws.
The cartel operated between September 2005 and May 2008 and involved:
- Barclays
- Crédit Agricole
- HSBC
- JPMorgan Chase
- Deutsche Bank
- RBS
- Société Générale
The participating traders coordinated through:
- Corporate chat rooms
- Instant messaging services
- Exchange of pricing information
Barclays, Deutsche Bank, RBS and Société Générale had previously settled the matter with the Commission in 2013, whereas Crédit Agricole, HSBC and JPMorgan Chase contested the proceedings.
EC Fines Rechargeable Battery Producers €166 Million in Cartel Settlement
December 12, 2016
The European Commission fined Sony, Panasonic and Sanyo a combined €166 million for coordinating prices and exchanging sensitive commercial information relating to rechargeable lithium-ion batteries.
The batteries were commonly used in:
- Mobile phones
- Laptops
- Power tools
The Commission found that the companies coordinated:
- Temporary price increases
- Supply and demand forecasts
- Price forecasts
- Competitive bidding strategies
Samsung SDI received complete immunity after revealing the cartel’s existence to the Commission.
Sony, Panasonic and Sanyo received reductions in fines for cooperation during the investigation.
UNITED KINGDOM – COMPETITION AND MARKETS AUTHORITY (‘CMA’)
CMA Disqualifies Director of Trod Ltd. for Competition Law Breach
December 01, 2016
The Competition and Markets Authority secured a disqualification undertaking against Mr. Daniel Aston, Managing Director of Trod Ltd.
Mr. Aston agreed not to act as a director of any UK company for a period of five years.
The disqualification followed findings that Trod Ltd. entered into anti-competitive arrangements with competing online sellers involving:
- Price coordination
- Agreements not to undercut prices
- Online sales restrictions through Amazon UK
The CMA noted that this was the first use of its director disqualification powers for a competition law violation.
INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
CCI Dismisses Complaint Against Mercedes Benz
CCI Case No. 93/2015 | December 13, 2016
The Informant alleged that Mercedes Benz India Pvt. Ltd. abused its dominant position in relation to buses purchased for commercial use in Gujarat.
The allegations included:
- Manufacturing defects in fuel tanks
- Poor after-sales service network
- Delay in availability of spare parts
- Excessive pricing of spare parts
The Informant claimed that prolonged repairs caused significant financial losses and loan repayment difficulties.
The Competition Commission observed that the grievance primarily related to service deficiencies and after-sales issues rather than competition concerns.
Accordingly, the information was dismissed under Section 26(2) of the Competition Act.
CCI Dismisses Complaint Against Indian Oil Corporation Ltd.
CCI Case No. 30/2016 | November 10, 2016
The Informants alleged that Indian Oil Corporation Ltd. arbitrarily transferred LPG consumer numbers between distributors without obtaining customer consent.
The matter involved:
- Indian Oil Corporation Ltd.
- Olympic Flame Indane Gas
- Jaishiv Indane Gas Service
The Competition Commission examined whether Indian Oil held a dominant position in the market for LPG cylinder distribution services in Badaun district of Uttar Pradesh.
The Commission concluded that Indian Oil was not dominant in the relevant market and therefore Section 4 of the Competition Act was not attracted.
The complaint was accordingly dismissed.
CCI Dismisses Allegations Against National Dairy Development Board and Amul Dairy
CCI Case No. 69/2016 | November 10, 2016
The Informant challenged conditions imposed in a tender floated by Amul Dairy for supply and commissioning of a fired boiler system for its dairy plant in Gujarat.
The allegations claimed that the technical eligibility conditions in the tender were anti-competitive.
The Competition Commission observed that a procurer, acting as a consumer, is entitled to prescribe technical specifications and eligibility criteria according to its operational requirements.
The Commission further held that consumers must be free to exercise commercial choice while purchasing goods and services.
Accordingly, the allegations of anti-competitive conduct were dismissed.
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 and Gunny Trade Association through issuance of Daily Price Bulletins for jute packaging materials.
The Competition Commission agreed with the Directorate General that the associations acted in concert to determine and control prices.
The Commission held that the conduct violated:
- Section 3(3)(a) of the Competition Act
- Section 3(3)(b) of the Competition Act
- Section 3(1) of the Competition Act
The Commission imposed penalties at 5% of average turnover on the associations and also penalised committee members.
The CCI further observed that compulsory jute packaging requirements distorted market competition and restricted customer choice.
Collective Boycott by Chemists & Druggists Association Goa
MANU/CO/0086/2014
The Competition Commission found that Chemists & Druggists Association Goa continued anti-competitive conduct despite earlier directions issued by the Commission.
The association allegedly forced pharmaceutical companies to stop dealing with non-authorised stockists.
The Commission observed that CDAG:
- Threatened pharmaceutical companies
- Forced stockists to suspend supplies
- Continued boycott practices
- Violated earlier Commission orders
The CCI imposed a penalty of INR 10,62,062 and directed the association to cease anti-competitive practices.
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 and its subsidiaries.
The Competition Commission found that forfeiture clauses imposed penalties upon buyers without corresponding obligations upon Coal India for non-delivery.
The Commission held that such conditions were unfair and constituted abuse of dominant position under Section 4(2)(a)(i) of the Competition Act.
The CCI directed Coal India to modify the terms and conditions of the scheme.
Sai Wardha Power Company Ltd. v. Western Coalfields Ltd.
MANU/CO/0085/2014
The Informant alleged that Western Coalfields Ltd. and Coal India Ltd. imposed one-sided Fuel Supply Agreements upon thermal power producers.
The Commission held that the opposite parties enjoyed dominance in:
- Production of non-coking coal
- Supply of non-coking coal to thermal power producers in India
The Fuel Supply Agreements were held to contain unfair conditions imposed due to market dominance.
The Commission directed the opposite parties to cease anti-competitive conduct and suitably modify the agreements.
HT Media Limited v. Super Cassettes Industries Limited
MANU/CO/0080/2014
HT Media Limited alleged abuse of dominant position by Super Cassettes Industries Limited in relation to licensing of music content for FM radio broadcasting.
The allegations included:
- Excessive royalty charges
- Minimum Commitment Charges (MCC)
- Unfair licensing conditions
- Restriction of competing music content
The Competition Commission held that imposition of MCC constituted an unfair condition under Section 4(2)(a)(i) of the Competition Act.
The opposite party was directed to cease imposing such conditions and a penalty of INR 2,83,28,000 was imposed.
MARKET DEVELOPMENTS
Valeant to Divest Paragon Holdings to Settle FTC Charges
November 07, 2016
Valeant Pharmaceuticals agreed to divest Paragon Holdings I, Inc. following FTC allegations that its acquisition violated antitrust laws.
The investigation related to GP buttons used for manufacturing rigid gas permeable contact lenses.
The FTC observed that the acquisition combined the two largest manufacturers accounting for over 70% of USA sales across several lens categories.
The Commission alleged that the merger enabled Valeant to:
- Increase prices
- Reduce discounts
- Reduce innovation
- Restrict product distribution
Under the settlement, Valeant agreed to divest Paragon to Paragon Companies LLC.
Abbott Laboratories to Divest Medical Device Businesses Following St. Jude Acquisition
December 27, 2016
Abbott Laboratories agreed to divest two medical device businesses to resolve FTC concerns regarding its acquisition of St. Jude Medical Inc.
The FTC identified concerns in markets relating to:
- Vascular closure devices
- Steerable sheaths
The Commission noted that the merged entity would control more than 70% of the vascular closure device market.
Under the settlement order, Abbott and St. Jude agreed to divest relevant businesses to Terumo Corporation.
The order further required assistance to Terumo in establishing manufacturing capabilities.
CCI Approves Merger of LG Chem and LG Life Sciences
C-2016/10/440 | November 15, 2016
The Competition Commission approved the merger between LG Chem Ltd. and LG Life Sciences Ltd.
The Commission observed no significant horizontal overlap in India.
A minor vertical overlap existed in relation to:
- Supply of acetone
- Manufacture of cephalosporin antibiotics
The Commission held that the customer-supplier relationship between the parties was insignificant and unlikely to raise competition concerns.
Cineworld / Empire Cinemas Merger Inquiry
December 12, 2016
The Competition and Markets Authority reviewed Cineworld’s acquisition of five cinemas from Empire Cinemas.
The inquiry examined local competition impacts in:
- Leicester Square
- Bromley
- Hemel Hempstead
The CMA concluded that sufficient competitive constraints would remain post-merger and therefore no substantial lessening of competition would arise.
The merger was not referred for detailed investigation.
State Bidco / Hi-Life Diners Club Merger Inquiry
November 03, 2016
The Competition and Markets Authority reviewed Bridgepoint Group’s acquisition of Hi-Life Diners Club Limited.
The parties operated subscription-based restaurant discount membership services in the UK.
The CMA observed that alternative restaurant discount options remained available through:
- Voucher websites
- Restaurant discount offers
- Direct promotional schemes
The authority concluded that the merger would not substantially lessen competition.
EC Approves Acquisition of Sanofi’s Animal Health Business by Boehringer Ingelheim
November 09, 2016
The European Commission approved acquisition of Sanofi’s animal health business Merial by Boehringer Ingelheim subject to divestitures.
The investigation focused on overlaps involving:
- Swine vaccines
- Ruminant vaccines
- Anti-inflammatory drugs
- Anti-microbials
- Osteoarthritis feed nutrients for pets
The Commission concluded that elimination of one competitor would likely reduce competition and increase prices.
To address concerns, the parties agreed to divest several marketed and pipeline products including:
- Circovac
- Progressis
- Parvovax
- Ketofen
- Equioxx products
The merger was approved subject to the divestiture commitments.
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/18/17
