UNITED STATES OF AMERICA – FEDERAL TRADE COMMISSION (‘FTC’)
Drug Testing Compliance Group, LLC
Matter No. 151 0048 | January 29, 2016
The Federal Trade Commission approved a final order settling charges against Drug Testing Compliance Group, LLC, an Idaho-based provider of drug and alcohol testing services for trucking companies and drivers.
The FTC alleged that the company illegally invited a competitor to enter into a customer allocation agreement in violation of Section 5 of the FTC Act.
The settlement prohibited the company from:
- Communicating with competitors regarding prices or rates
- Entering into customer allocation agreements
- Fixing prices with competitors
- Encouraging competitors to raise or maintain prices
The order further prohibited agreements to divide markets or reduce services.
NXP Semiconductors N.V.
Matter No. 151 0090 | January 29, 2016
The FTC approved a final order relating to NXP Semiconductors N.V.’s proposed acquisition of Freescale Semiconductor Ltd.
The Commission observed that the $11.8 billion transaction would likely lessen competition in the worldwide market for RF power amplifiers.
To resolve competition concerns, NXP agreed to divest:
- RF power amplifier manufacturing assets
- Research and development facilities
- Associated patents and technologies
- Relevant employees and management teams
The assets were divested to Jianguang Asset Management Co. Ltd.
ArcLight Energy Partners Fund VI, L.P.
Matter No. 151 0149 | February 09, 2016
The Federal Trade Commission approved a final order settling charges arising from ArcLight Energy Partners Fund VI, L.P.’s acquisition of Gulf Oil Limited Partnership.
The FTC alleged that the acquisition would lessen competition in petroleum product terminal markets in Pennsylvania.
The affected markets included:
- Altoona
- Scranton
- Harrisburg
ArcLight agreed to divest ownership interests in four light petroleum product terminals to address competition concerns.
EUROPEAN UNION – EUROPEAN COMMISSION GENERAL COURT
Alternators and Starters Cartel
Case No. 40028 | January 27, 2016
The European Commission imposed fines totaling €137,789,000 on Mitsubishi Electric Corporation and Hitachi Automotive Systems Ltd. for participating in a cartel involving alternators and starters.
The cartel activities included:
- Price coordination
- Customer allocation
- Project allocation
- Exchange of commercially sensitive information
The investigation revealed that the companies coordinated responses to tenders and agreed on pricing strategies for automobile engine components.
Denso Europe was granted immunity after disclosing the cartel to the Commission.
REPUBLIC OF INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
CCI Dismisses Information Against Uber
Case No. 96/2015 | February 10, 2016
Meru Travels Pvt. Ltd. alleged that Uber adopted anti-competitive practices including predatory pricing and loyalty-inducing incentive schemes for drivers.
The Competition Commission defined the relevant market as:
- Market for radio taxi services in Delhi
The CCI observed that the Delhi radio taxi market remained competitive and held that Uber did not occupy a dominant position.
The allegations concerning exclusive arrangements with drivers were also found to be unsubstantiated.
Accordingly, the matter was closed under Section 26(2) of the Competition Act.
CCI Dismisses Allegations Against IndiGo
Case No. 108/2015 | February 10, 2016
Air India alleged that IndiGo engaged in predatory recruitment of pilots trained by Air India, resulting in operational disruptions and cancellation of flights.
The allegations included:
- Violation of DGCA guidelines
- Recruitment without “No Objection Certificate”
- Failure to observe mandatory notice periods
The Competition Commission observed that the dispute primarily involved employment issues rather than competition concerns.
The matter was accordingly closed under Section 26(2) of the Competition Act.
MARKET DEVELOPMENTS
FTC Requires Hikma Pharmaceuticals to Divest Generic Injectable Drug Assets
February 19, 2016
The Federal Trade Commission required Hikma Pharmaceuticals PLC to divest rights relating to five generic injectable drugs as part of a settlement involving acquisition of assets from Ben Venue Laboratories, Inc.
The FTC alleged that the acquisition would likely harm future competition in markets for:
- Acyclovir sodium injection
- Diltiazem hydrochloride injection
- Famotidine injection
- Prochlorperazine edisylate injection
- Valproate sodium injection
The divested assets were transferred to Amphastar Pharmaceuticals, Inc.
FTC Imposes Conditions on Lupin Acquisition of Gavis Pharmaceuticals
February 18, 2016
The FTC required Lupin Ltd. and Gavis Pharmaceuticals LLC to divest rights and assets relating to two generic pharmaceutical products.
The products were used to treat:
- Bacterial infections
- Ulcerative colitis
The divestitures were made to G&W Laboratories to preserve market competition.
Lupin also agreed to:
- Supply finished products to G&W for two years
- Transfer confidential business information
- Assist in obtaining FDA approvals
CCI Approves Acquisition of Sabarmati Gas Limited
C-2015/12/361 | February 10, 2016
The Competition Commission approved acquisition of additional shares in Sabarmati Gas Limited by Gujarat State Petroleum Corporation Limited, Gujarat State Petronet Limited and Bharat Petroleum Corporation Limited.
The transaction increased the Acquirers’ shareholding from 50% to approximately 98.86%.
The CCI observed that the transaction primarily involved investor exit and was unlikely to alter competition dynamics in the relevant market.
Accordingly, the combination was approved under Section 31(1) of the Competition Act.
Ministry of Corporate Affairs Issues Competition Act Notifications
March 04, 2016
The Central Government issued notifications under Section 54(a) of the Competition Act, 2002 exempting certain enterprises from mandatory notification requirements before the Competition Commission.
The notifications included:
- De minimis exemption for enterprises with assets below ₹350 crore
- De minimis exemption for enterprises with turnover below ₹1000 crore
- Enhancement of jurisdictional thresholds under Section 5 of the Competition Act
The exemptions were granted for a period of five years from publication in the Official Gazette.
First TransPennine Express / TransPennine Express Franchise Merger Inquiry
January 18, 2016
The Competition and Markets Authority reviewed acquisition of the TransPennine Express franchise by First TransPennine Express.
The CMA considered potential competition concerns in:
- Rail transport services
- Bus transport services
- Public transport connectivity in Northern England
The authority observed that competing rail services and market constraints remained available.
The transaction was cleared using the “de minimis” exception.
Ampco-Pittsburgh / Åkers AB Merger Inquiry
January 22, 2016
The Competition and Markets Authority reviewed Ampco-Pittsburgh Corporation’s acquisition of Åkers AB.
The parties were major producers of forged and cast rolls used in:
- Steel industries
- Aluminium industries
The CMA initiated investigation to assess whether the merger could result in substantial lessening of competition within UK markets.
European Commission Approves Teva Acquisition of Allergan Generics
January 21, 2016
The European Commission approved Teva’s acquisition of Allergan’s generics business subject to commitments.
The EC identified concerns relating to:
- Generic pharmaceutical overlaps
- Reduced competition in the UK, Ireland and Iceland
- Development pipeline overlaps
To address concerns, the parties agreed to extensive divestitures including:
- Marketed molecules
- Pipeline molecules
- Allergan’s generics activities in the UK and Ireland
The transaction was approved subject to full compliance with the commitments.
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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.
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Doc ID: CL/13/16
