UNITED STATES OF AMERICA (‘US’) – FEDERAL TRADE COMMISSION (‘FTC’)
Integra LifeSciences Holding Corporation to Acquire Codman Neurosurgery Division Subject to Divestiture of Medical Device Product Lines
September 27, 2017
Integra LifeSciences Holdings Corp. and Johnson & Johnson’s Codman Neuro division were engaged in supplying devices used in operative neurosurgery, hydrocephalus management and neuro-critical care.
The Federal Trade Commission filed a complaint alleging that the proposed acquisition valued at approximately $1 billion would adversely affect competition in multiple medical device markets in the United States.
The FTC identified concerns in the following product categories:
- Intracranial pressure monitoring systems
- Cerebrospinal fluid collection systems
- Non-antimicrobial external ventricular drainage catheters
- Fixed pressure valve shunt systems
- Dural grafts
The FTC observed that the parties together held dominant market shares across these product lines, significantly reducing effective competition.
To resolve the competition concerns, Integra and Codman agreed to divest the identified product lines to Natus Medical Incorporated.
The FTC concluded that the divestiture would adequately remedy the anti-competitive effects of the proposed merger.
INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
CCI Issues Cease and Desist Orders Against Film Industry Daily Wage Workers Associations
October 30, 2017
The information was filed by Mr. Vipul A. Shah, an independent film producer and director, against various associations and trade unions representing workers and producers in the film industry.
The complaint alleged that the associations entered into an anti-competitive Memorandum of Understanding dated 01.10.2010.
The MOU allegedly imposed restrictive conditions including:
- Mandatory hiring of only association members
- Restrictions on engaging non-member craftsmen
- Fixation of wages and work shifts
- Threats and non-cooperation directives against producers
- Stalling of film shoots for hiring non-members
The CCI found that the associations abused their position and disrupted fair competition in the market.
It was also observed that the associations continued enforcing anti-competitive provisions even after expiry of the MOU.
Considering that some of the opposite parties represented daily wage earners, the Commission issued only cease and desist directions to meet the ends of justice.
UNITED KINGDOM (‘UK’) – COMPETITION AND MARKET AUTHORITY (‘CMA’)
Balmoral Tanks Ltd Fined by Competition Appellate Tribunal
October 06, 2017
Balmoral Tanks Ltd., a European tank design and manufacturing company, entered the market for cylindrical galvanised steel tanks used in fire suppression sprinkler systems.
In July 2012, Balmoral attended a meeting involving cartel participants engaged in supplying cylindrical galvanised steel tanks.
The cartel members allocated customers and fixed prices amongst themselves.
The Competition and Market Authority captured audio and visual recordings of the meeting and related phone calls, which formed the basis for infringement decisions.
Although Balmoral refused to formally join the cartel, the Competition Appellate Tribunal held that Balmoral exchanged confidential pricing information and reassured cartel members regarding its pricing strategy.
The Tribunal concluded that the discussions constituted an infringement of competition law and dismissed Balmoral’s appeal.
Balmoral Tanks Ltd. was fined £130,000.
The Showmen’s Guild of Great Britain Agrees to Binding Changes Following CMA Investigation
October 26, 2017
The Competition and Market Authority investigated the rules of The Showmen’s Guild of Great Britain after concerns that its regulations adversely affected competition within UK funfairs.
The CMA estimated that approximately 90% of fairs in the UK were organised by Guild members.
The investigation found that:
- Guild rules restricted competition between fairs
- Non-members faced significant barriers to membership
- Guild members were prohibited from attending rival fairs
- Restrictions limited opportunities for non-members
To resolve the concerns, the Guild proposed binding commitments including opening Guild-run fairs to non-members and reducing restrictions on rival fairs.
The Guild also agreed to publish transparent membership rules and objective eligibility criteria online.
The CMA concluded that the commitments adequately addressed its competition concerns and closed the investigation subject to member approval.
REPUBLIC OF INDIA – ANTI-COMPETITIVE AGREEMENTS AND ABUSE OF DOMINANT POSITION
Indian Sugar Mills Association and Others v. Indian Jute Mills Association and Others
MANU/CO/0092/2014
The information was filed alleging anti-competitive agreements between Indian Jute Mills Association and Gunny Trade Association relating to fixation of sale prices of jute packaging material.
The Competition Commission agreed with the Directorate General’s findings that the associations acted in concert through publication of Daily Price Bulletins.
The Commission held that the conduct violated Sections 3(3)(a), 3(3)(b) read with Section 3(1) of the Competition Act.
The CCI imposed penalties at the rate of 5% of average turnover upon the associations and also imposed penalties upon committee members involved in the conduct.
The Commission additionally observed that statutory requirements mandating sugar packaging through jute bags restricted competitive neutrality and consumer choice.
In re: Collective Boycott by Chemists & Druggists Association Goa
MANU/CO/0086/2014
The matter concerned allegations that Chemists & Druggists Association Goa continued anti-competitive practices despite earlier directions issued by the Commission.
It was alleged that pharmaceutical companies and stockists were pressured to stop dealing with the Informant.
The Commission observed that the association continued anti-competitive conduct by:
- Restricting supplies through non-authorised stockists
- Threatening pharmaceutical companies
- Forcing suspension of supplies
- Continuing boycott practices
The CCI directed the association to cease and desist from anti-competitive conduct and imposed a penalty of INR 10,62,062.
Shri Bijay Poddar v. Coal India Limited and 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 allegation focused on the forfeiture clause which imposed penalties on buyers for non-lifting of coal without corresponding obligations upon Coal India for non-delivery.
The Commission held that the terms amounted to imposition of unfair conditions under Section 4(2)(a)(i) of the Competition Act.
The CCI directed Coal India and its subsidiaries to modify the terms and conditions of the scheme and cease the anti-competitive conduct.
M/s 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 and unfair Fuel Supply Agreements for supply of non-coking coal.
The Commission found that the opposite parties operated independently of market forces and enjoyed dominant position in the market for production and supply of non-coking coal to thermal power producers in India.
The CCI held that the Fuel Supply Agreements imposed unfair conditions upon power producers and violated Section 4(2)(a)(i) of the Competition Act.
The opposite parties were directed to cease the anti-competitive conduct and modify the Fuel Supply Agreements accordingly.
HT Media Limited v. Super Cassettes Industries Limited
MANU/CO/0080/2014
HT Media Limited alleged that Super Cassettes Industries Limited abused its dominant position by imposing excessive licence fees and minimum commitment charges for broadcasting music content.
The Informant alleged that the conditions restricted broadcasting choices and denied market access to competing music companies.
The Competition Commission held that the imposition of minimum commitment charges constituted an unfair condition under Section 4(2)(a)(i) of the Competition Act.
The Commission directed the opposite party to cease imposing such conditions and imposed a penalty of INR 2,83,28,000.
MARKET DEVELOPMENTS
Vodafone and Idea Merger Approved by CCI
October 03, 2017
The proposed combination involved merger and amalgamation of telecommunication businesses of Vodafone India Limited, Vodafone Mobile Services Limited and Idea Cellular Limited.
The CCI examined the impact of the merger on retail mobile telephony services across telecom circles in India.
The Commission observed that although the merged entity would hold significant market share in multiple telecom circles, sufficient competition would continue from:
- Bharti Airtel
- RCOM & Aircel
- Jio
- Tata
- BSNL/MTNL
The Commission also considered factors such as multiple SIM usage and Mobile Number Portability regulations which ensured competitive constraints.
The merger was approved as it was not likely to result in appreciable adverse effect on competition.
RJIO Receives Approval to Acquire 800 MHz Frequency Band from RCOM and RTL
October 03, 2017
The combination related to acquisition by RJIO of rights to use spectrum in the 800 MHz frequency band from Reliance Communications Limited and Reliance Telecom Limited.
The Competition Commission examined the spectrum holdings of telecom operators across all telecom circles.
The CCI concluded that RJIO’s post-acquisition spectrum holding would not adversely affect competition in the relevant markets.
Approval was granted subject to the condition that any future spectrum acquisition under the option agreements completed after one year would require fresh approval.
CMA Approves Acquisition of Amec Foster Wheeler by John Wood Group Subject to Conditions
September 12, 2017
The John Wood Group plc agreed to acquire Amec Foster Wheeler plc.
Both parties provided engineering services to upstream offshore oil and gas companies in the UK Continental Shelf.
The CMA found that the merger could substantially lessen competition in:
- Engineering and construction services
- Operations and maintenance services
To address the concerns, the parties agreed to divest Amec’s upstream offshore oil and gas business and related assets in the United Kingdom.
The CMA accepted the commitments and did not refer the merger for Phase 2 investigation.
Euro Car Parts Limited Directed to Sell Local Depots in Nine Areas
October 31, 2017
Euro Car Parts Limited acquired Andrew Page Limited, resulting in overlap in supply of car parts and related products across the UK.
The CMA identified nine areas where the merger could significantly reduce competition.
The affected locations included:
- Blackpool
- Brighton
- Gloucester
- Liphook
- Scunthorpe
- Sunderland
- Wakefield
- Worthing
- York
The CMA concluded that divestiture of either ECP or AP depots in these areas would adequately address competition concerns.
EC Approves Conditional Acquisition of FTE by Valeo
October 13, 2017
The European Commission approved Valeo’s acquisition of FTE subject to conditions.
Both parties supplied automotive equipment and the EC identified competition concerns in markets relating to:
- Passive hydraulic actuator modules and components
- Concentric slave cylinders for light vehicles
The Commission considered the merged entity’s high market share and the lack of alternative suppliers in certain markets.
To resolve concerns, Valeo agreed to divest its passive hydraulic actuator business, including manufacturing facilities and associated assets in Italy, Turkey, China and India.
The EC concluded that the proposed remedies adequately addressed competition concerns and approved the transaction.
IN-HOUSE CONTRIBUTORS
Avsi Malik Sharma
Parnika Medhekar
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Doc ID: CL/23/17
