REPUBLIC OF INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
Mr. Pankaj Agarwal & Others v. DLF Gurgaon Home Development Private Limited
Case No. 13 of 2010 | May 12, 2015
The Competition Commission of India examined allegations of abuse of dominant position by DLF Gurgaon Home Development Private Limited.
The Opposite Party challenged the jurisdiction of the Commission on the ground that the agreements were executed before relevant provisions of the Competition Act came into force.
The Commission observed that:
- Subsequent agreements containing similar clauses were executed after enforcement of the Competition Act
- The Opposite Party held a dominant position in the relevant market
- The buyer agreements were heavily one-sided and unfair to purchasers
- The conduct amounted to abuse of dominant position
The Commission directed the Opposite Party and its group companies to cease and desist from unfair and abusive conduct under Section 4 of the Competition Act, 2002.
M/s Best IT World (India) Pvt. Ltd. (‘iBall’) v. Telefonaktiebolaget L M Ericsson (‘Publ’) & Others
Case No. 04 of 2015 | May 12, 2015
The Competition Commission examined allegations against Ericsson concerning abuse of dominant position relating to Standard Essential Patents (‘SEPs’).
The Commission observed that Ericsson appeared dominant in the relevant market and prima facie engaged in:
- Discriminatory royalty practices
- Unfair Non-Disclosure Agreement conditions
- Violation of FRAND obligations
- Excessive royalty demands
The Commission held that the allegations disclosed a prima facie case under Section 4 of the Competition Act and referred the matter to the Director General for detailed investigation.
In Re: M/s Sheth & Co & Others
Suo Moto Case No. 04 of 2013 | June 10, 2015
The Competition Commission initiated suo moto proceedings against manufacturers and suppliers of CN containers used in ordnance factories.
The Commission observed that identical pricing patterns coupled with peculiar market conditions established collusive conduct.
The anti-competitive conduct included:
- Price fixing
- Collusive bidding
- Bid coordination
- Artificial inflation of prices
The Commission held the conduct to be in violation of Section 3 of the Competition Act and directed the parties to cease and desist from such practices.
UNITED KINGDOM – COMPETITION AND MARKET AUTHORITY (‘CMA’)
CMA Fines Estate Agents and Newspaper Publisher for Competition Law Violations
May 08, 2015
The Competition and Markets Authority investigated anti-competitive arrangements involving estate and lettings agents and a newspaper publisher in Fleet, Hampshire.
The investigation concerned arrangements preventing estate agents from advertising discounted fees in local property newspapers.
The CMA observed that the restrictions:
- Reduced price competition
- Limited consumer choice
- Restricted market transparency
- Created barriers for potential competitors
The parties admitted breaching competition law and agreed to pay penalties exceeding £775,000.
UNITED STATES OF AMERICA – FEDERAL TRADE COMMISSION (‘FTC’)
FTC Settlement with Cephalon Inc.
May 28, 2015
The Federal Trade Commission entered into a major settlement with Cephalon Inc. and Teva Pharmaceutical Industries Limited relating to anti-competitive conduct involving the sleep disorder drug Provigil.
The FTC alleged that Cephalon paid generic competitors to delay market entry of generic versions of Provigil.
The conduct involved:
- Reverse payment settlements
- Delayed generic competition
- Monopolization of the market
- Higher prices for consumers
The settlement required Teva to make $1.2 billion available to compensate affected purchasers.
EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Fines Parking Heater Producers in Cartel Settlement
June 17, 2015
The European Commission fined German automotive parts producers Eberspächer and Webasto €68 million for cartel conduct.
The companies coordinated:
- Prices
- Customer allocation
- Market behavior relating to parking heaters
- Auxiliary heater products across the EEA
The Commission held that the conduct violated Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’).
European Commission Fines Retail Food Packaging Producers and Distributors
June 24, 2015
The European Commission fined eight manufacturers and two distributors of retail food packaging trays a total of €115.8 million.
The companies were found to have participated in multiple cartels involving:
- Price fixing
- Customer allocation
- Rigid tray packaging products
- Polystyrene and polypropylene trays
The Commission observed that the companies operated through five separate cartel arrangements in breach of EU competition rules.
REPUBLIC OF INDIA – ANTI-COMPETITIVE AGREEMENTS & ABUSE OF DOMINANT POSITION
Indian Sugar Mills Association & Others v. Indian Jute Mills Association & Others
MANU/CO/0092/2014
The Competition Commission examined allegations relating to anti-competitive agreements between members of Indian Jute Mills Association and Gunny Trade Association.
The Commission found existence of tacit agreements involving:
- Price determination through Daily Price Bulletins
- Control of jute packaging material prices
- Concerted market practices
- Restriction of competition
The Commission imposed penalties on the associations and their office bearers and issued cease and desist directions.
In Re: Collective Boycott by Chemists & Druggists Association, Goa
MANU/CO/0086/2014
The Competition Commission examined allegations against Chemists & Druggists Association, Goa (‘CDAG’) concerning collective boycott and refusal to deal.
The Commission observed that CDAG:
- Forced pharmaceutical companies to discontinue supplies
- Pressured stockists not to deal with certain traders
- Continued anti-competitive conduct despite earlier CCI orders
- Engaged in cartel-like practices
The Commission imposed penalties and directed CDAG to cease anti-competitive practices.
Shri Bijay Poddar v. Coal India Limited & Subsidiaries
MANU/CO/0087/2014
The Informant challenged unfair terms under the Spot e-Auction Scheme 2007 introduced by Coal India Limited.
The Commission observed that the forfeiture clause imposed unfair conditions on buyers by:
- Imposing penalties for non-lifting of coal
- Providing no corresponding liability on suppliers
- Reflecting abuse of dominant position
The Commission directed modification of the scheme and ordered the Opposite Parties to cease unfair practices.
M/s Sai Wardha Power Company Ltd. v. Western Coalfields Ltd.
MANU/CO/0085/2014
The Competition Commission examined Fuel Supply Agreements entered into between coal suppliers and thermal power producers.
The Informant alleged that Coal India Limited and its subsidiaries imposed one-sided and anti-competitive contractual conditions.
The Commission held that the Opposite Parties:
- Enjoyed undisputed dominance in non-coking coal supply
- Imposed unfair conditions in Fuel Supply Agreements
- Operated independently of market forces
The Commission directed the Opposite Parties to modify Fuel Supply Agreements and cease abusive conduct.
HT Media Limited v. Super Cassettes Industries Limited
MANU/CO/0080/2014
HT Media alleged abuse of dominant position by Super Cassettes Industries Limited relating to licensing of music content.
The allegations included:
- Excessive royalty demands
- Minimum commitment charges
- Unfair licensing conditions
- Restriction of market access
The Commission held the Opposite Party guilty of imposing unfair conditions and directed removal of Minimum Commitment Charges.
A penalty amounting to INR 2,83,28,000 was imposed.
MARKET DEVELOPMENTS
FTC Imposes Conditions on ZF Friedrichshafen / TRW Merger
May 15, 2015
The Federal Trade Commission issued a proposed complaint and consent order concerning ZF Friedrichshafen AG’s proposed acquisition of TRW Automotive Holdings Corp.
The FTC observed that the merger would substantially lessen competition in heavy vehicle tie rod markets in North America.
The parties agreed to divest:
- TRW linkage business
- TRW suspension business in North America and Europe
Zimmer Holdings Agrees to Divest Assets in Biomet Acquisition
June 24, 2015
Zimmer Holdings agreed to divest rights and assets relating to orthopedic products in connection with its acquisition of Biomet Inc.
The FTC identified concerns in markets relating to:
- Unicondylar knee implants
- Total elbow implants
- Bone cement products
The FTC concluded that the merger could reduce competition and increase prices in orthopedic product markets.
CCI Approves GE and Alstom Combination
Combination No. C-2015/01/241 | May 05, 2015
The Competition Commission approved the proposed combination involving General Electric Company and Alstom.
The transaction involved:
- Acquisition of thermal power businesses
- Acquisition of renewable power businesses
- Formation of multiple joint ventures
- Acquisition of signaling business assets
The Commission concluded that the combination would not have appreciable adverse effect on competition in India.
CCI Approves Hyundai Hysco and Hyundai Steel Merger
Combination Registration No. C-2015/05/272 | June 05, 2015
The Competition Commission approved the merger of Hyundai Hysco Company Limited into Hyundai Steel Company.
The Commission observed that:
- No significant horizontal overlap existed in India
- Vertical relationships would not lead to foreclosure
- Several major suppliers remained in the market
The proposed combination was approved under Section 31(1) of the Competition Act.
UNITED KINGDOM – COMPETITION & MARKETS AUTHORITY (‘CMA’)
CMA Closes Investigation into Interchange Fee Arrangements
May 06, 2015
The Competition & Markets Authority decided not to continue formal investigations relating to MasterCard and Visa interchange fee arrangements.
The decision was influenced by the forthcoming Interchange Fee Regulation of the European Parliament.
Ticketmaster Europe Holdco / Seatwave
ME/6505-14 | May 01, 2015
The CMA reviewed Ticketmaster Europe Holdco Limited’s acquisition of Seatwave entities.
The authority considered whether the merger would substantially lessen competition in online secondary ticket exchange platforms.
The CMA observed that:
- Strong competitors remained in the market
- The market was dynamic and evolving
- The parties were not each other’s closest competitors
The merger was cleared without reference under the Enterprise Act, 2002.
ForFarmers UK / Countrywide Farmers
ME/6507/14 | May 13, 2015
The CMA investigated acquisition of Countrywide Farmers’ Feed and Forage business by ForFarmers UK Limited.
The investigation focused on supply and distribution of:
- Animal feeds
- Agricultural products
The CMA concluded that the merger would not result in a substantial lessening of competition.
Solera Holdings / CAP Automotive
ME/6504-14 | June 12, 2015
The CMA reviewed Solera Holdings’ acquisition of CAP Automotive.
The investigation examined relationships involving:
- Vehicle provenance data
- Used car valuation data
- Non-horizontal market effects
The CMA concluded that the merger would not substantially lessen competition.
EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Accepts Commitments by SkyTeam Members
May 12, 2015
The European Commission approved commitments offered by SkyTeam members Air France/KLM, Alitalia and Delta concerning transatlantic routes.
The Commission had concerns that the cooperation could restrict competition on:
- Amsterdam – New York
- Rome – New York
- Paris – New York premium passenger routes
The airlines committed to measures intended to facilitate entry and expansion by competing airlines.
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/07/15
