EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Fines ICAP for Participation in Yen Interest Rate Derivatives Cartels
February 04, 2015
The European Commission fined UK-based broker ICAP plc €14.9 million for facilitating several cartels in the Yen Interest Rate Derivatives (‘YIRD’) sector.
The Commission found that ICAP facilitated anti-competitive conduct by:
- Disseminating misleading information regarding JPY LIBOR submissions
- Influencing panel banks’ benchmark submissions
- Acting as a communication channel between cartel participants
- Supporting manipulation of interest rate derivatives markets
The conduct related to manipulation of Japanese Yen LIBOR benchmark rates used in global financial markets.
REPUBLIC OF INDIA – ANTI-COMPETITIVE AGREEMENTS & ABUSE OF DOMINANT POSITION
M/s Swastik Stevedores Pvt. Ltd. v. Dumper Owner’s Association & Others
Case No. 42 of 2012
The Informant alleged contravention of Sections 3 and 4 of the Competition Act, 2002 by the Opposite Parties relating to intra-port transport operations at Paradip Port.
The Competition Commission found that the Opposite Parties:
- Determined rates for dumper transport services
- Fixed prices for intra-port transport operations
- Engaged in anti-competitive agreements
- Violated Section 3(3)(a) of the Competition Act
The Commission imposed penalties amounting to 8% of the average turnover for the preceding three financial years.
Bharat Garage v. Indian Oil Corporation Ltd. & Others
Case No. 87 of 2014
The Informant alleged anti-competitive conduct and abuse of dominant position by Indian Oil Corporation Limited and Mahanagar Gas Limited relating to CNG supply arrangements.
The allegations included:
- Denial of direct CNG supply
- Exclusive supply arrangements
- Misleading contractual claims
- Alleged cartelization between the Opposite Parties
The Commission observed that the agreement between the Opposite Parties was not exclusive in nature and did not prima facie contravene Sections 3 or 4 of the Competition Act.
The matter was accordingly closed.
M/s Shivam Enterprises v. Kiratpur Sahib Truck Operators Co-operative Transport Society Ltd.
Case No. 43 of 2013
The Informant alleged anti-competitive conduct by truck operators and transport societies in the Kiratpur region.
The allegations related to:
- Restriction on entry of non-member trucks
- Fixation of freight transport rates
- Limiting supply of freight transport services
- Collective market control by transport operators
The Commission held that the Opposite Parties violated Sections 3(1) and 3(3)(a) of the Competition Act by fixing prices and controlling supply of freight transport services.
The Commission directed the Opposite Parties to cease and desist from anti-competitive conduct and imposed penalties amounting to 10% of average turnover.
M/s GHCL Limited v. Coal India Limited & Others
Case No. 08 of 2014
The Informant alleged unfair and discriminatory treatment by Coal India Limited and its subsidiaries relating to supply of coal for captive power plants.
The Commission observed that the Opposite Parties:
- Imposed unfair conditions in Fuel Supply Agreements
- Adopted discriminatory practices regarding coal quality and sampling
- Abused dominant position in non-coking coal supply
- Failed to ensure fair contractual obligations
The Commission directed the Opposite Parties to cease abusive conduct and undertake remedial measures within sixty days.
MARKET DEVELOPMENTS
FTC Imposes Conditions on Novartis Acquisition of GSK Oncology Drugs
February 23, 2015
The FTC imposed conditions on Novartis AG’s proposed acquisition of GlaxoSmithKline’s oncology drug portfolio.
The FTC observed that the acquisition could reduce competition in markets for:
- BRAF inhibitor drugs
- MEK inhibitor drugs
- Melanoma combination treatments
Novartis agreed to divest all related assets to Array BioPharma Inc. and provide transitional support to preserve competition.
UNITED STATES OF AMERICA (‘US’) – FEDERAL TRADE COMMISSION (‘FTC’)
FTC Approves Final Order Preserving Competition in Ignition IGBT Market
September 30, 2016
The Federal Trade Commission approved a final order relating to ON Semiconductor Corporation’s proposed acquisition of Fairchild Semiconductor International Inc.
The FTC observed that the transaction would substantially lessen competition in the worldwide market for Ignition Insulated-Gate Bipolar Transistors (‘Ignition IGBTs’).
Ignition IGBTs are semiconductors used as solid-state switches in automotive ignition systems for internal combustion engines.
The Commission noted that the combined entity would hold more than 60% market share in the global Ignition IGBT market.
To address competition concerns, ON Semiconductor agreed to:
- Divest its Ignition IGBT business to Littelfuse Inc.
- Transfer intellectual property and design files
- Facilitate customer relationship transfers
- Supply products temporarily while manufacturing operations are established
FTC Approves Largest Pharmaceutical Divestiture Order in Merger Case
September 07, 2016
The Federal Trade Commission approved a final order settling charges arising from Teva Pharmaceutical Industries Ltd.’s acquisition of Allergan plc’s generic pharmaceutical business.
The FTC observed that the proposed $40.5 billion acquisition would likely reduce competition in multiple pharmaceutical markets.
Under the settlement, Teva agreed to divest rights and assets relating to 79 pharmaceutical products to 11 different firms.
The divested products included treatments for:
- ADHD
- Allergies
- Arthritis
- Cancer
- Diabetes
- High blood pressure
- Parkinson’s disease
- Respiratory disorders
- Sleep disorders
The order also required Teva and Allergan to provide technical assistance and transitional support to acquiring companies.
EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Fines ARA €6 Million for Restricting Competition in Waste Management Market
September 20, 2016
The European Commission fined Altstoff Recycling Austria (‘ARA’) €6 million for blocking competitors from entering the Austrian household packaging waste management market.
The Commission found that ARA controlled significant nationwide collection infrastructure which competitors could not duplicate.
Between March 2008 and April 2012, ARA refused access to infrastructure, thereby excluding competitors and eliminating competition.
The conduct was held to violate Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’).
ARA cooperated with the Commission and agreed to:
- Divest part of its collection infrastructure
- Provide access to competitors
- Remove exclusionary barriers
Due to cooperation during investigation, the fine imposed was reduced by 30%.
INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
CCI Dismisses Complaint Against Power Grid Corporation of India
Case No. 41/2016 | September 21, 2016
The Informant alleged that Power Grid Corporation of India restricted competition among accreditation agencies and third-party laboratories.
The complaint challenged the requirement that contractors must test construction materials only through NABL accredited laboratories.
The Competition Commission observed that Power Grid Corporation was not engaged in accreditation services or testing services.
The Commission held that, as a public sector undertaking, the corporation was entitled to ensure quality standards and infrastructure reliability.
The CCI further observed that consumers and procurers have freedom to exercise their commercial choices in procurement decisions.
Accordingly, no competition law violation was established.
Picasso Animation Pvt. Ltd. v. Picasso Digital Media Pvt. Ltd.
Case No. 75/2016 | October 25, 2016
The Informant alleged misuse of the brand name “Picasso” and abuse of dominant position by Picasso Digital Media Pvt. Ltd.
The dispute related to:
- Use of registered brand name “Picasso”
- Animation training and certification services
- Trademark and copyright claims
- Corporate association representations
The Competition Commission observed that several institutions offered animation courses and that the market remained highly competitive.
The Commission held that the dispute primarily concerned intellectual property and brand ownership issues rather than competition law violations.
Accordingly, no contravention of Sections 3 or 4 of the Competition Act was found.
CCI Initiates Investigation Against GAIL India Ltd.
Case No. 16-20/2016 | October 03, 2016
The allegations concerned abuse of dominant position by GAIL India Ltd. in the market for supply and distribution of natural gas to industrial customers.
The Informants alleged:
- Suspension of gas supply without notice
- Denial of dispute resolution mechanisms
- Removal of prior notice requirements
- Arbitrary payment demands
The Competition Commission observed that while contractual terms themselves may not necessarily be abusive, GAIL’s conduct appeared prima facie unfair.
The Commission held that GAIL’s actions potentially violated:
- Section 4(2)(a)(i) of the Competition Act
- Section 4(2)(b)(i) of the Competition Act
Accordingly, the Director General was directed to conduct an investigation under Section 26(1) of the Act.
MARKET DEVELOPMENTS
FTC Requires Mylan to Divest Rights to Generic Drugs Following Meda Acquisition
September 08, 2016
The Federal Trade Commission approved a final order concerning Mylan Inc.’s acquisition of Swedish pharmaceutical company Meda.
The FTC concluded that the acquisition could reduce competition and increase prices for certain generic drugs.
The divestitures involved:
- 250 mg generic carisoprodol tablets
- 400 mg and 600 mg generic felbamate tablets
The products were used to treat:
- Muscle spasms and stiffness
- Refractory epilepsy
The rights were transferred to Alvogen Pharma US, Inc. and Indicus Pharma LLC respectively.
CCI Approves Acquisition of Thermal Power Plant by JSW Energy Limited
C-2016/08/420 | September 14, 2016
The Competition Commission approved JSW Energy Limited’s acquisition of a 500 MW operational coal-fired thermal power plant in Madhya Pradesh.
The transaction involved:
- Jaiprakash Power Ventures Limited
- Bina Power Supply Limited
- JSW Energy Limited
The Commission observed limited horizontal overlap in electricity generation activities.
The combined market share of the parties in terms of installed capacity was considered insignificant and unlikely to raise competition concerns.
CCI Approves Acquisition Involving DEN Networks Limited
C-2016/09/435 | October 14, 2016
The Competition Commission approved acquisition of additional shareholding in DEN Networks Limited by entities associated with Goldman Sachs Group.
The Commission examined horizontal overlaps relating to:
- E-commerce operations
- Pepperfry business activities
- Media and cable network services
The Commission observed that the overlaps and vertical relationships were insignificant and unlikely to adversely affect competition in India.
CCI Approves Internal Restructuring of Fortis Group
C-2016/09/433 | October 14, 2016
The Competition Commission approved an internal restructuring proposal involving Fortis Healthcare Limited, Fortis Malar Hospital Limited and SRL Limited.
The restructuring included:
- Transfer of healthcare business through slump sale
- Demerger of diagnostics business
- Amalgamation of SRL into FMHL
The Commission observed that control of the entities would continue to remain within the Fortis Group after restructuring.
Accordingly, the proposed combination was approved under Section 31(1) of the Competition Act.
Hon Hai / SMART Technologies Merger Inquiry
August 26, 2016
The Competition and Markets Authority reviewed the proposed merger between Hon Hai Precision Industry Co. Ltd. and SMART Technologies Inc.
The investigation examined possible competition concerns relating to:
- Interactive whiteboards
- Interactive projectors
- Interactive flat panels
- Electronic manufacturing services
The CMA concluded that the parties faced sufficient competition from alternate suppliers and that the merger would not substantially lessen competition.
CMA Reviews Dover / Wayne Fueling Systems Acquisition
October 24, 2016
The Competition and Markets Authority announced that Dover Corporation’s acquisition of Wayne Fueling Systems could face detailed investigation unless competition concerns were addressed.
The concerns related to the supply of fuel dispensers in the United Kingdom.
The parties proposed alternative remedies including:
- Release of distribution restrictions
- Support for rival fuel dispenser distribution
- Sale of Wayne’s UK distribution business
The CMA indicated that acceptance of the remedies could avoid a detailed merger investigation.
Commission Approves Acquisition of Rofin-Sinar by Coherent Subject to Conditions
October 26, 2016
The European Commission approved Coherent Inc.’s acquisition of Rofin-Sinar Technology Inc. subject to divestiture commitments.
The investigation focused on low power CO2 lasers where the parties were close competitors.
The Commission observed that the merged entity would become the clear market leader with market share exceeding 50%.
To address competition concerns, Coherent agreed to divest Rofin-Sinar’s Hull (UK) business engaged in manufacturing low power CO2 lasers.
Commission Clears Acquisition of Mitsubishi by Nissan
September 08, 2016
The European Commission approved Nissan Motor’s acquisition of Mitsubishi Motors Corporation under the EU Merger Regulation.
The Commission observed limited overlap between the parties in automobile manufacturing and sales activities within the European Economic Area.
The investigation concluded that several strong competitors would remain active after the transaction.
Accordingly, the merger was approved under the normal review procedure.
Commission Approves Acquisition of Faiveley Transport by Wabtec
October 04, 2016
The European Commission approved Wabtec’s acquisition of Faiveley Transport subject to divestiture commitments.
The investigation focused on:
- Train brake systems
- Sintered friction materials
- Pantographs
- Railway equipment components
The Commission concluded that the merger would eliminate one of the few strong competitors in sintered train friction brake materials.
To resolve concerns, the parties agreed to divest Faiveley Transport Gennevilliers, which specialized in sintered friction materials.
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Doc ID: CL/16/16
