UNITED KINGDOM – COMPETITION AND MARKET AUTHORITY (‘CMA’)
Investigation into Online Hotel Booking Restrictions Closed
September 16, 2015
The Office of Fair Trading (‘OFT’) investigated agreements between InterContinental Hotels Group, Booking.com and Expedia relating to online hotel room booking restrictions.
The investigation focused on contractual clauses preventing online travel agents from offering discounted hotel room rates.
The agreements contained “rate parity” or “most favored nation” clauses which restricted:
- Discounting of hotel room prices
- Lower pricing on competing online travel platforms
- Independent price competition among booking websites
The OFT accepted commitments from the parties to remove such restrictions in the United Kingdom, subject to specified conditions.
EUROPEAN UNION – EUROPEAN COMMISSION
European Commission Fines Optical Disc Drive Suppliers for Cartelization
October 21, 2015
The European Commission fined eight optical disc drive suppliers a total of €116 million for cartel conduct relating to procurement tenders organized by Dell and HP.
The companies involved included:
- Philips
- Lite-On
- Philips & Lite-On Digital Solutions
- Hitachi-LG Data Storage
- Toshiba Samsung Storage Technology
- Sony
- Sony Optiarc
- Quanta Storage
The cartel activities involved:
- Coordination of bidding strategies
- Exchange of commercially sensitive information
- Sharing procurement tender results
- Avoidance of competition in tenders
Philips, Lite-On and their joint venture received full immunity after disclosing the cartel.
General Court Reduces Fine in Cathode Ray Tube Cartel Case
September 09, 2015
The General Court reviewed penalties imposed by the European Commission relating to the cathode ray tube cartel.
The Court upheld challenges brought by:
- Panasonic Corporation
- Toshiba Corporation
- MT Picture Display Co. Ltd.
The companies argued that the European Commission incorrectly calculated penalties by using average direct European Economic Area sales instead of weighted averages based on actual product size and duration.
The General Court reduced the fines imposed on Panasonic and associated entities.
REPUBLIC OF INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’)
GIPCL & GSFCL v. GAIL (India) Ltd.
Case Nos. 55 & 56 of 2015 | September 08, 2015
The Informants alleged abuse of dominant position by GAIL in relation to Gas Supply Agreements for supply of Re-Liquefied Natural Gas (‘RLNG’).
The allegations related to:
- Take or pay clauses
- Unfair contractual obligations
- One-sided contractual terms
The CCI observed that GAIL appeared dominant in the relevant market for supply and distribution of RLNG to industrial consumers in Vadodara.
However, the Commission noted that GAIL had significantly reduced liabilities under the contracts and provided make-up gas facilities.
The CCI concluded that the agreements were negotiated after discussions and that invocation of the take or pay clause was neither arbitrary nor abusive.
Cloudwalker Streaming Technologies Pvt. Ltd. v. Bennett, Coleman and Co. Ltd.
Case No. 46/2015 | September 29, 2015
The Informant alleged abuse of dominant position by Bennett, Coleman and Co. Ltd. in pricing advertisements published in The Times of India newspaper.
The dispute related to classification of advertisements under:
- Display category
- Entertainment category
The CCI defined the relevant market as:
- Market for procurement of advertisement space in English print media in Mumbai
The Commission observed that several competing newspapers and electronic media platforms constrained the conduct of the Opposite Party.
The CCI therefore held that the Opposite Party was not dominant in the relevant market.
Shri Arvind Sood v. Hyundai Motor India Ltd.
Case No. 64 of 2015 | September 29, 2015
The Informant alleged anti-competitive conduct by Hyundai Motor India Ltd. relating to pre-launch bookings for Hyundai Creta vehicles.
The allegations included:
- Collection of booking amounts without product disclosure
- Retention of booking amounts by dealers
- Anti-competitive agreements with dealers
- Cartel-like behavior
The CCI defined the relevant market as:
- Market for Sports / Multi Utility Vehicles in India
The Commission observed that multiple automobile manufacturers operated in the market and consumers had sufficient alternatives.
The CCI concluded that Hyundai was not dominant in the relevant market.
MARKET DEVELOPMENTS
FTC Settles Charges in Wright Medical / Tornier Merger
September 30, 2015
The FTC settled charges relating to Wright Medical Group Inc.’s proposed acquisition of Tornier N.V.
The Commission alleged that the $3.3 billion merger would substantially reduce competition in markets for:
- Total ankle replacements
- Total silastic toe joint replacements
To resolve concerns, Wright and Tornier agreed to divest U.S. rights and assets to Integra Lifesciences Corporation.
The settlement also required transfer of:
- Manufacturing technology
- Intellectual property
- Existing inventory
- Technical assistance
CCI Approves Koneru Holdings Acquisition
C-2015/07/290 | September 08, 2015
The Competition Commission approved acquisition of multiple engineering and infrastructure companies by Koneru Holdings Limited.
The target entities were engaged in:
- Engineering procurement and construction solutions
- Power transmission projects
- Telecom tower infrastructure
- Railway electrification
The CCI observed that post-combination market shares would remain relatively small and that several vertically integrated competitors would continue to provide competitive constraints.
The combination was approved under Section 31(1) of the Competition Act.
CCI Approves Fairfax Group Acquisition in IIFL Holdings
C-2015/07/296 | August 19, 2015
The Competition Commission approved acquisition of 26% equity share capital of IIFL Holdings Limited by FIH Mauritius Investments Limited and I Investments Limited.
The transaction involved businesses relating to:
- Merchant banking
- Investment advisory services
- Retail broking
- Asset management
- Commodity broking
The CCI observed that there was no change in management control and no appreciable adverse effect on competition.
CCI Approves Heidelberg Cement Acquisition of Italcementi
C-2015/08/300 | September 17, 2015
The Competition Commission approved Heidelberg Cement AG’s acquisition of Italcementi S.P.A.
The transaction involved overlapping activities in:
- Grey cement
- Clinker
- Construction materials
- Aggregates and asphalt
The CCI conducted assessment based on earlier decisional practice in the Holcim / Lafarge merger.
The Commission concluded that the transaction would not have appreciable adverse effect on competition in India.
CCI Approves Standard Life Additional Share Acquisition
C-2015/09/308 | October 07, 2015
The Competition Commission approved acquisition of additional shares in HDFC Standard Life Insurance Company Limited by Standard Life (Mauritius) 2006 Limited.
Post transaction, the Acquirer’s shareholding increased from 26% to 35%.
The CCI observed that:
- No change in control would occur
- Existing affirmative rights remained unchanged
- The transaction would not adversely affect competition
CMA Clears NordGlass Acquisition by AGC Automotive Europe
October 29, 2015
The Competition and Markets Authority cleared AGC Automotive Europe’s acquisition of NordGlass.
The parties operated in:
- Production of automotive glass
- Supply of automotive glass
- Float glass manufacturing
The CMA observed that NordGlass held low market shares and that the merged entity would continue to face competitive constraints.
The authority also noted that the parties supplied differentiated products in terms of price and quality.
Motor Fuel Group Acquisition of Shell Petrol Stations Cleared
September 24, 2015
The CMA reviewed acquisition of 90 petrol filling stations owned by Shell U.K. Limited by Motor Fuel Group.
The investigation focused on overlapping activities in:
- Retail supply of petrol and diesel
- Auto-LPG supply
- Grocery retailing
The CMA observed that the parties held relatively small market shares and the transaction would not substantially lessen competition.
Surrey Hospitals Merger Cleared
September 16, 2015
The Competition and Markets Authority approved merger between Ashford and St. Peter’s Hospitals NHS Foundation Trust and Royal Surrey County Hospital NHS Foundation Trust.
The CMA assessed overlaps in:
- Elective healthcare services
- Emergency services
- Private patient services
- Specialized healthcare services
- Community health services
The authority concluded that presence of nearby hospitals would continue to provide effective alternatives for patients.
European Commission Approves Shell Acquisition of BG Group
September 02, 2015
The European Commission approved the $70 billion acquisition of BG Group by Royal Dutch Shell.
The investigation focused on overlapping operations in:
- Oil and gas exploration
- LNG liquefaction
- Wholesale LNG supply
The Commission observed that effective competition would remain due to presence of competing market participants and growing LNG infrastructure capacity.
European Commission Approves GE Acquisition of Alstom Energy Business
September 08, 2015
The European Commission approved General Electric’s acquisition of Alstom’s energy business subject to commitments.
The Commission initially raised concerns regarding heavy duty gas turbine markets.
To address concerns, GE agreed to divest central parts of Alstom’s heavy duty gas turbine business to Ansaldo.
The Commission concluded that the commitments sufficiently resolved competition concerns.
European Commission Clears Intel Acquisition of Altera
October 14, 2015
The European Commission approved Intel Corporation’s acquisition of Altera Corporation.
The investigation focused on semiconductor markets involving:
- Field programmable gate arrays (FPGAs)
- Complex programmable logic devices (CPLDs)
- CPU-related semiconductor markets
The Commission concluded that the transaction would not result in anti-competitive effects in the relevant semiconductor markets.
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/11/15
