EUROPEAN UNION – EUROPEAN COMMISSION
Servier and Generic Pharmaceutical Companies Cartel Case
July 09, 2014
The European Commission found that Servier implemented a strategy to delay the entry of cheaper generic versions of its cardiovascular medicine Perindopril.
Servier acquired competing technologies and entered into patent settlement agreements with generic manufacturers to prevent market entry.
- Exclusion of generic competitors
- Anti-competitive patent settlements
- Abuse of dominant position
- Restriction of price competition
The Commission held that the conduct violated Articles 101 and 102 of the Treaty on the Functioning of the European Union.
Total fines of €427.7 million were imposed on Servier and generic manufacturers including Niche/Unichem, Matrix, Teva, Krka and Lupin.
Watch Repair Investigation
July 29, 2014
The European Commission investigated allegations that luxury watch manufacturers restricted supply of spare parts to independent repairers.
The investigation focused on whether refusal to supply spare parts constituted restrictive agreements or abuse of dominant position.
- Supply of spare parts
- Independent repair services
- Luxury watch market
- Competition assessment
Following a detailed investigation, the Commission concluded that there was limited likelihood of finding an infringement and closed the case.
REPUBLIC OF INDIA – ANTI-COMPETITIVE AGREEMENTS & ABUSE OF DOMINANT POSITION
Faridabad Industries Association v. Adani Gas Limited
MANU/CO/0063/2014 | July 2014
The Informant alleged that Adani Gas Limited imposed unfair and one-sided terms in Gas Sales Agreements for supply of natural gas in Faridabad.
The Competition Commission examined the relevant market, dominance and alleged abuse of dominant position.
- Unfair force majeure clauses
- Discriminatory billing provisions
- Unequal termination rights
- Mandatory payment before arbitration
The Commission held Adani Gas Limited dominant in the relevant market and found several clauses of the Gas Sales Agreement to be unfair.
The Commission directed modification of the agreements and imposed a penalty at the rate of 4% of the average turnover of the preceding three years.
Shri Shamsher Kataria v. Honda Siel Cars India Ltd. & Others
MANU/CO/0066/2014 | August 2014
The Informant alleged that automobile manufacturers restricted access to genuine spare parts, diagnostic tools and repair information.
The Competition Commission found that consumers and independent repair workshops were denied access to essential products and technical information.
- Restriction on spare parts availability
- Denial of diagnostic tools
- Limitation on independent repairers
- Abuse of dominant position
The Commission held the automobile manufacturers liable for anti-competitive conduct and imposed a penalty of 2% of their total turnover in India.
The Commission further directed the companies to cease such conduct and make spare parts and repair tools readily available in the market.
MARKET DEVELOPMENTS
Landmark Aviation Acquisition of Ross Aviation
July 30, 2014
The United States Department of Justice required Landmark Aviation to divest fixed base operator assets at Scottsdale Municipal Airport, Arizona.
The proposed acquisition would have combined the only two operators providing flight support services at the airport.
- Flight support services
- Airport operations
- Market concentration concerns
- Required divestiture
The Department concluded that divestiture was necessary to prevent higher prices and reduced service quality.
Tyson Foods Acquisition of Hillshire Brands
August 27, 2014
The Department of Justice required Tyson Foods to divest Heinold Hog Markets as a condition for acquiring The Hillshire Brands Company.
The acquisition would have combined two major purchasers of sows from farmers in the United States.
- Sow purchasing business
- Agricultural market competition
- Required divestiture
- Protection of farmer interests
The Department concluded that the divestiture was necessary to preserve competition for livestock purchases.
Merger of United Stock Exchange and Bombay Stock Exchange
July 30, 2014
The Competition Commission of India approved the merger of United Stock Exchange of India Limited with Bombay Stock Exchange Limited.
The Commission examined overlaps in the currency derivatives segment and assessed competitive effects.
- Currency derivatives market
- Stock exchange services
- Competition assessment
- Market efficiency benefits
The Commission concluded that the merger would not cause an appreciable adverse effect on competition in India.
Alliance Medical Group Acquisition of IBA Business Assets
August 15, 2014
The Competition and Markets Authority cleared Alliance Medical Group’s acquisition of assets used to produce FDG-18, a radioactive tracer used in PET-CT scans.
The CMA considered the financial condition of the target business and its competitive position in the market.
- Healthcare diagnostics market
- Radioactive tracer production
- Merger assessment
- Failing business considerations
The CMA concluded that the acquisition would not significantly reduce competition.
Vodafone Acquisition of ONO
July 02, 2014
The European Commission approved Vodafone’s acquisition of Grupo Corporativo ONO under the EU Merger Regulation.
The Commission observed that Vodafone’s mobile telecommunications activities complemented ONO’s fixed telecommunications business.
- Mobile telecommunications services
- Fixed telecommunications services
- Complementary business activities
- Merger clearance
The Commission concluded that the transaction would not raise competition concerns.
Bulgarian Energy Holding Abuse of Dominance Investigation
August 12, 2014
The European Commission issued a Statement of Objections to Bulgarian Energy Holding concerning suspected abuse of dominant position in the wholesale electricity market.
The investigation focused on territorial restrictions imposed in electricity supply contracts.
- Wholesale electricity market
- Territorial resale restrictions
- Dominant position concerns
- Article 102 TFEU investigation
The Commission’s preliminary view was that such restrictions limited competition and consumer choice.
Siemens Acquisition of Rolls-Royce Businesses
August 04, 2014
The European Commission approved Siemens’ acquisition of certain Rolls-Royce gas turbine and compressor businesses.
The Commission determined that the parties were not close competitors and that sufficient competition would remain after the transaction.
SSAB Acquisition of Rautaruukki
July 15, 2014
The European Commission approved SSAB’s acquisition of Rautaruukki, subject to divestment commitments.
The Commission identified concerns regarding carbon steel and steel construction products in Nordic markets.
- Carbon steel products
- Steel construction products
- Nordic market competition
- Divestiture commitments
The transaction was approved after commitments addressed the Commission’s competition concerns.
Doc ID: CL/09/14
