UNITED STATES OF AMERICA – FEDERAL TRADE COMMISSION (‘FTC’)
FTC Approves Final Order Preserving Competition for Generic Drugs
April 20, 2016
The Federal Trade Commission approved a final order relating to Lupin Limited’s proposed acquisition of Gavis Pharmaceuticals LLC.
The FTC found that the merger would combine two of the only four suppliers of generic doxycycline monohydrate capsules in certain dosage strengths.
The investigation also revealed concerns regarding delayed entry of generic mesalamine extended release capsules.
The products were used for treatment of:
- Bacterial infections
- Ulcerative colitis
Under the order, the parties were required to divest:
- Generic doxycycline monohydrate capsules
- Generic mesalamine extended release capsules
The divested assets were transferred to G&W Laboratories Inc. to preserve competition.
FTC Requires U.S. Renal Care to Divest Dialysis Clinics
March 17, 2016
The Federal Trade Commission approved a final order concerning U.S. Renal Care Inc.’s acquisition of DSI Renal.
The FTC alleged that the merger would substantially lessen competition for outpatient dialysis services in Laredo, Texas.
The transaction would reduce the number of competing providers from three to two.
The Commission observed that the merger could lead to:
- Higher dialysis treatment prices
- Reduced service quality
- Reduced incentives for patient care improvements
Under the final order, the parties were required to divest three dialysis clinics to Satellite Healthcare, Inc.
EUROPEAN UNION – EUROPEAN COMMISSION (‘EC’)
EC Fines Riberebro €5.2 Million for Canned Mushrooms Cartel
April 06, 2016
The European Commission fined Grupo Riberebro Integral S.L. for participating in a cartel involving canned mushrooms in the European Economic Area.
The cartel coordinated:
- Minimum pricing
- Customer allocation
- Volume targets
- Confidential tender information exchange
The products involved were canned mushrooms sold in tins and jars for private label sales.
The EC observed that the cartel aimed to stabilize market shares and prevent price decline within the market.
Riberebro participated in the cartel between September 2010 and February 2012.
REPUBLIC OF INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
CCI Dismisses Information Against GAIL
Case No. 94/2015 | April 01, 2016
The Informant alleged that GAIL imposed unfair and discriminatory conditions in a Gas Supply Agreement.
The allegations related to the market for:
- Supply and distribution of natural gas (RLNG) to industrial customers
The Competition Commission observed that GAIL had reduced the “Take or Pay” liability after discussions with the Informant.
The Commission held that mere technical non-compliance of contractual conditions does not automatically amount to abuse of dominant position.
Accordingly, no violation of Section 4 of the Competition Act was found and the matter was dismissed.
CCI Dismisses Information Against NSDL and SEBI
Case No. 104/2015 | March 29, 2016
The Informant alleged that National Securities Depository Ltd. through its subsidiary attempted to enter the intermediary participant market in a manner that would distort competition.
The allegations claimed that NSDL’s position as a major depository would unfairly benefit its subsidiary.
The Competition Commission observed that the allegations were premature because no anti-competitive conduct had yet occurred.
The CCI further noted that the same issues had already been raised before SEBI.
Accordingly, the matter was closed under Section 26(2) of the Competition Act.
MARKET DEVELOPMENTS
FTC Files Complaint Against Pharmaceutical Companies for Pay-for-Delay Settlements
March 30, 2016
The Federal Trade Commission filed a complaint alleging that Endo Pharmaceuticals and several other pharmaceutical companies engaged in anti-competitive “pay-for-delay” settlements.
The complaint related to delayed generic competition involving:
- Opana ER
- Lidoderm patches
The FTC alleged that Endo paid generic manufacturers including Impax Laboratories and Watson Laboratories to delay market entry.
The Commission claimed that the arrangements:
- Maintained monopoly power
- Reduced generic competition
- Increased consumer prices
- Violated antitrust laws
The FTC sought disgorgement of profits and permanent injunctions against similar future conduct.
CCI Approves Dalmia Bharat Acquisition
C-2016/01/367 | March 01, 2016
The Competition Commission approved Dalmia Bharat Limited’s acquisition of remaining shares in Dalmia Cement (Bharat) Limited held by KKR Mauritius Cement Investments Limited.
The transaction resulted in Dalmia Bharat obtaining sole control over Dalmia Cement (Bharat) Limited.
The Commission observed that:
- The transaction only involved exit of KKR Cement
- No significant competition concerns would arise
- No horizontal or vertical overlaps existed
Accordingly, the combination was approved under Section 31(1) of the Competition Act.
CMA Clears Swissport / Aviator Ground Handling Merger
February 05, 2016
The Competition and Markets Authority reviewed Aviator LGW Limited’s acquisition of Swissport Limited’s ground handling business at London Gatwick.
The investigation considered overlaps in:
- Ramp services
- Baggage handling services
- Passenger handling services
- Airside cargo services
The CMA found that several competing ground handling operators remained active at Gatwick Airport.
The authority concluded that the merger would not substantially lessen competition.
CMA Clears Kaplan Acquisition of Osborne Books
February 09, 2016
The Competition and Markets Authority assessed Kaplan International Holdings Limited’s acquisition of Osborne Books Limited.
The parties overlapped in the supply of:
- Printed AAT educational content
- Online AAT educational content
The CMA determined that the market involved was of insufficient importance to justify a detailed merger investigation.
Accordingly, the transaction was cleared.
EC Approves Teva Acquisition of Allergan Generics Subject to Commitments
March 10, 2016
The European Commission approved Teva Pharmaceutical Industries Limited’s acquisition of Allergan’s generics business.
The investigation identified concerns regarding:
- Generic pharmaceutical overlaps
- Out-licensing relationships
- Reduced competition in several EEA countries
The EC observed that both companies were among the leading global generic pharmaceutical manufacturers.
To resolve concerns, the parties agreed to divest significant business assets, including much of Allergan’s operations in the UK and Ireland.
The commitments were accepted and the transaction was approved.
EC Approves Statoil Fuel & Retail Takeover of Shell’s Dansk Fuels
March 23, 2016
The European Commission approved Statoil Fuel & Retail’s acquisition of Shell’s Danish fuels business Dansk Fuels subject to commitments.
The investigation focused on competition in:
- Danish petrol station markets
- Wholesale refined oil product markets
The EC observed that the transaction combined the largest and second-largest operators in certain fuel markets.
The Commission raised concerns that the merged entity could restrict access to competing retailers and resellers.
To resolve concerns, the parties offered commitments including divestiture of assets to create a viable national competitor.
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Doc ID: CL/14/16
