UNITED STATES OF AMERICA – FEDERAL TRADE COMMISSION (‘FTC’)
Federal Appeals Court Upholds FTC Order Against McWane, Inc.
April 17, 2015
The U.S. Court of Appeals for the Eleventh Circuit upheld the FTC’s decision against McWane, Inc. concerning unlawful maintenance of monopoly in the domestic pipe fittings market.
The FTC found that McWane imposed an illegal exclusive dealing policy on distributors which prevented them from purchasing products from competitors.
The anti-competitive conduct included:
- Exclusive dealing arrangements
- Restrictions on distributors purchasing from competitors
- Exclusionary market practices
- Maintenance of monopoly power
The conduct prevented competitors such as Star Pipe Products Ltd. from effectively competing in the domestic fittings market.
Cardinal Health Settles Monopolization Charges
April 20, 2015
The FTC announced that Cardinal Health, Inc. agreed to resolve allegations relating to monopolization of twenty-five local markets for low-energy radiopharmaceuticals.
The FTC alleged that Cardinal engaged in anti-competitive conduct involving:
- Blocking competitive entry
- Threatening suppliers and competitors
- Forcing hospitals and clinics to pay inflated prices
- Restricting distribution rights
The settlement required Cardinal to pay $26.8 million and included measures to restore competition in affected markets.
Court Bars Instant Response Systems from Coercive Practices
April 23, 2015
A U.S. District Court prohibited Brooklyn-based Instant Response Systems (‘IRS’) and its owner from using intimidation and deceptive telemarketing practices against elderly consumers.
The FTC alleged that the company:
- Shipped unordered medical alert devices
- Sent fake invoices
- Threatened consumers with legal action
- Violated the National Do Not Call Registry rules
The Court imposed a $3.4 million judgment which may be used to compensate affected consumers.
EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Opens Investigation Against Google Android Practices
April 15, 2015
The European Commission initiated formal antitrust proceedings against Google concerning its Android mobile operating system practices.
The investigation focused on whether Google:
- Hindered rival mobile operating systems
- Restricted market access for competing applications
- Abused dominant position
- Entered into anti-competitive agreements
The proceedings were initiated under Articles 101 and 102 of the Treaty on the Functioning of the European Union.
REPUBLIC OF INDIA – ANTI-COMPETITIVE AGREEMENTS & ABUSE OF DOMINANT POSITION
Mr. Mohit Manglani v. Flipkart India Pvt. Ltd. & Others
Case No. 80 of 2014
The Informant alleged anti-competitive exclusive agreements between e-commerce portals and product sellers.
The allegations included:
- Exclusive online sale arrangements
- Artificial creation of product scarcity
- Non-negotiable consumer terms
- Control over resale conditions and pricing
The Commission observed that such arrangements did not result in appreciable adverse effect on competition and noted that online platforms increased consumer choice and price transparency.
The Commission found no contravention of Sections 3 or 4 of the Competition Act.
M/s Saint Gobain Glass India Ltd. v. Gujarat Gas Company Ltd.
Case No. 20 of 2013
The Informant alleged abuse of dominant position by Gujarat Gas Company Limited relating to supply of non-APM natural gas.
The Commission examined factors such as:
- Market share
- Presence of competing suppliers
- Consumer dependence
- Vertical integration
The Commission concluded that Gujarat Gas was not dominant in the relevant market because of the presence of strong competitors including GAIL, IOCL and GSPC.
Accordingly, no abuse of dominance was established.
M/s Three D Integrated Solutions Ltd. v. VeriFone India Sales Pvt. Ltd.
Case No. 13 of 2013
The Commission examined allegations against VeriFone India Sales Pvt. Ltd. concerning abuse of dominant position in the POS terminal market.
The Commission held that the Opposite Party:
- Imposed unfair SDK agreement conditions
- Restricted development of value-added services
- Sought disclosure of sensitive business information
- Limited technical and scientific development
The Commission directed the Opposite Party to cease and desist from anti-competitive conduct under Section 4 of the Competition Act.
M/s Atos Worldline India Pvt. Ltd. v. VeriFone India Sales Pvt. Ltd.
Case No. 56 of 2012
The Competition Commission examined alleged abuse of dominant position by VeriFone India Sales Pvt. Ltd. in the POS terminal market.
The Commission held that the Opposite Party:
- Imposed unfair conditions through SDK agreements
- Restricted VAS service development
- Sought sensitive downstream business information
- Violated Section 4 of the Competition Act
The Commission imposed a penalty amounting to 5% of the company’s turnover and directed it to cease anti-competitive practices.
MARKET DEVELOPMENTS
FTC Approves Final Order Against AmeriFreight
April 20, 2015
The FTC approved a final consent order against AmeriFreight relating to deceptive online consumer reviews.
The FTC alleged that AmeriFreight:
- Provided incentives for favorable reviews
- Failed to disclose compensation arrangements
- Misrepresented customer reviews as unbiased
The order requires clear disclosure of material connections between the company and reviewers.
FTC Preserves Competition in Generic Drug Markets
April 27, 2015
The FTC approved a final order relating to Impax Laboratories Inc.’s acquisition of CorePharma LLC.
The parties agreed to divest rights and assets relating to:
- Generic pilocarpine tablets
- Generic ursodiol tablets
The FTC observed that the acquisition could reduce competition in markets for drugs used to treat dry mouth, biliary cirrhosis and gall bladder diseases.
CCI Approves Sun Pharma – Ranbaxy Divestment Proposal
Combination Registration No. C-2014/05/170
The Competition Commission reviewed divestment proposals relating to the merger of Sun Pharmaceutical Industries Limited and Ranbaxy Laboratories Limited.
The Commission approved acquisition of divestment products by Emcure Pharmaceuticals Limited.
The Commission observed that the acquisition would not cause appreciable adverse effect on competition in India.
CCI Approves Carnival Acquisition of Cinema Business
Combination Registration No. C-2015/01/236
The Competition Commission approved Carnival Films Private Limited’s acquisition of cinema exhibition business from Reliance Media Works Limited.
The transaction involved:
- Multiplex cinemas
- Single screen cinemas
- Food and beverage business operations
- Film exhibition activities
The Commission observed that sufficient competitive constraints would continue to exist in relevant geographic markets.
UNITED KINGDOM – COMPETITION & MARKETS AUTHORITY (‘CMA’)
Crawford & Company Adjusters / GAB Robins Holdings UK Merger Inquiry
ME/6503-14 | March 17, 2015
The CMA reviewed Crawford & Company Adjusters (UK) Limited’s acquisition of GAB Robins Holdings UK Ltd.
The merger involved overlapping activities in:
- Claims management services
- Loss-adjusting services
- Property claims
- Motor and aviation claims
The CMA concluded that the merger would not substantially lessen competition in the United Kingdom.
EUROPEAN UNION – EUROPEAN COMMISSION
Zimmer / Biomet Merger
Case No. M-7265 | March 30, 2015
The European Commission approved Zimmer Holdings Inc.’s acquisition of Biomet Inc. subject to commitments.
The Commission observed that the merger could result in price increases for orthopedic implants in the European Economic Area.
The commitments offered by Zimmer resolved the Commission’s competition concerns.
ZF / TRW Merger
Case No. M.7420 | March 12, 2015
The European Commission approved acquisition of TRW by ZF Friedrichshafen subject to divestment commitments.
The Commission observed that the merger would combine two major suppliers of chassis components in the EEA.
The concerns included:
- Potential price increases
- Reduced competition
- Limited entry possibilities for new competitors
The approval was conditional upon divestment of TRW’s chassis component businesses.
China Shipbuilding Power Engineering Institute / Wärtsilä Technology Joint Venture
Case No. M.7501 | March 25, 2015
The European Commission approved creation of CSSC Wärtsilä Engine, a joint venture between Wärtsilä Corporation and China Shipbuilding Power Engineering Institute.
The joint venture would manufacture medium speed diesel engines in China.
The Commission concluded that the transaction would not raise competition concerns within the European Economic Area.
MVV / BayWa Re / GlenDimplex / GreenCom / BEEGY Joint Venture
Case No. M.7522 | April 21, 2015
The European Commission approved formation of BEEGY GmbH, a joint venture involving companies from Germany and Ireland.
The joint venture would provide:
- Decentralized energy management services
- Energy sector solutions
- Software-based energy systems
The Commission observed that the transaction would have limited impact on market structure and therefore raised no competition concerns.
DISCLAIMER
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.
This disclaimer will be governed by and construed in accordance with laws of India, and any disputes relating to this disclaimer will be subject to the exclusive jurisdiction of the courts of the Republic of India.
Doc ID: CL/05/15
