UNITED KINGDOM (‘UK’) – COMPETITION AND MARKET AUTHORITY (‘CMA’)
The CMA Imposes Fine of £370,084 on Five Real Estate Agents
March 2, 2018
Abbott and Frost Estate Agents Limited, Gary Berryman Estate Agents Ltd, Reenslade Taylor Hunt, Saxons PS Limited, West Coast Property Services (UK) Limited and Annagram Estates Limited were found to be in breach of the Competition Act, 1998 for forming a cartel.
The CMA investigation revealed that the parties had fixed minimum commission rates at 1.5% in Somerset, thereby reducing competition and denying homeowners better deals on property sales.
Emails recovered during the investigation showed that the agents had agreed not to compete with each other and to ensure implementation of the minimum fee arrangement.
Annagram Estates Limited was not fined because it confessed under the CMA leniency policy and provided vital information and cooperation.
The remaining parties were fined a total of £370,084 for anti-competitive conduct affecting the real estate market.
EUROPEAN UNION (‘EU’) – EUROPEAN COMPETITION COMMISSION (‘COMMISSION’)
Altice Fined €124.5 Million for Breaching EU Merger Control Rules
April 24, 2018
The European Commission imposed a fine on Altice for breaching EU Merger Control Rules by taking control of PT Portugal before receiving merger approval.
Under EU merger rules, companies must notify the Commission and observe the standstill obligation before implementing any merger of Union dimension.
Altice had received conditional clearance on April 20, 2015 for acquiring PT Portugal, subject to divestment of its Portuguese businesses, Oni and Cabovisão.
During investigation, the Commission found that Altice had obtained veto rights over PT Portugal’s ordinary business activities and had exercised decisive influence before clearance.
The Commission concluded that Altice had breached EU Merger Regulations and imposed a fine of €124.5 million.
Eight Capacitor Manufacturers Fined €256 Million for Participating in a Cartel
March 21, 2018
The European Commission fined eight capacitor manufacturers for participating in anti-competitive practices in violation of Article 101 of the TFEU and Article 53 of the EEA Agreement.
The companies involved included Elna, Hitachi Chemical, Holy Stone, Matsuo, NEC Tokin, Nichicon, Nippon Chemi-Con and Rubycon.
The investigation began in 2014 after Panasonic submitted an immunity application under the Commission Leniency Notice.
The Commission found that from 1998 to 2012, the parties participated in meetings and exchanged commercially sensitive information through bilateral, trilateral and multilateral contacts.
Although the meetings took place in Japan, the anti-competitive conduct had global implementation, including within the European Economic Area.
The Commission granted reductions to certain parties under the leniency programme, while others received no reduction.
INDIA – COMPETITION COMMISSION OF INDIA (‘CCI’), COMPETITION ACT, 2002 (‘ACT’)
CCI Finds Association of Indian Dry Cell Manufacturers and Members Guilty of Cartelization
April 19, 2018
The Competition Commission of India found the Association of Indian Dry Cell Manufacturers and its primary members guilty of cartelization in the zinc carbon dry cell batteries market in India.
The primary members involved were Eveready Industries India Ltd, Indo National Ltd and Panasonic Energy India Company Limited.
Panasonic filed a lesser penalty application revealing that the parties exchanged price-sensitive information and coordinated pricing to prevent price wars.
The Director General recovered evidence through emails, faxes, meetings and other communications showing coordination among manufacturers from 2009 to 2016.
The CCI held that the cartel arrangement extended beyond MRP increases and included monitoring and controlling prices across the distribution chain.
The CCI imposed penalties on Eveready and Indo National, while granting penalty reductions under the lesser penalty framework.
- Eveready Industries India Ltd was fined INR 171.55 crores after reduction.
- Indo National Ltd was fined INR 42.6 crores after reduction.
- AIDCM was fined INR 1,85,450 for facilitating cartelization.
- Panasonic received 100% penalty reduction for cooperation.
CCI Imposes Penalty on Jet Airways, Indigo Airlines and SpiceJet for Anti-Competitive Practices
March 7, 2018
An information was filed by Express Industry Council of India alleging collusion among domestic airlines in fixing Fuel Surcharge rates for cargo transportation.
The airlines involved included Jet Airways, IndiGo Airlines, SpiceJet, Air India and Go Airlines.
The CCI found that Jet Airways, IndiGo and SpiceJet acted in a concerted manner in fixing and revising Fuel Surcharge rates.
The Commission held that the conduct violated Section 3(1) read with Section 3(3)(a) of the Competition Act.
Air India and Go Airlines were not held liable based on the facts considered by the Commission.
The CCI imposed penalties at 3% of the average turnover earned from Fuel Surcharge during the relevant period.
- Jet Airways was fined INR 39.81 crore.
- IndiGo Airlines was fined INR 9.45 crore.
- SpiceJet was fined INR 5.10 crore.
MARKET DEVELOPMENTS
FTC Requires Divestment of Rights to 10 Generic Medications as Condition for Merger
April 27, 2018
The Federal Trade Commission required Amneal Pharmaceuticals and Impax Laboratories to divest rights and assets relating to 10 generic products as a condition for approving their merger.
The FTC found that the acquisition could likely reduce competition in several generic pharmaceutical markets in the United States.
The affected products included medications for stroke risk reduction, seasonal allergies, pain relief, antibiotics, cholesterol treatment, epilepsy and antidepressant treatment.
As part of the settlement, rights and assets were required to be transferred to other companies including Perrigo Company Plc and G&W Laboratories.
The FTC accepted the merger subject to the conditions stated in the settlement.
CCI Approves Acquisition of Binani Cement Limited by Rajputana Properties Private Limited
March 7, 2018
The Competition Commission of India approved the proposed acquisition of 80% equity shares of Binani Cement Limited by Rajputana Properties Private Limited.
Rajputana Properties is a wholly owned subsidiary of Dalmia Cement (Bharat) Limited.
IDBI Bank Limited was proposed to acquire the remaining 20% equity shareholding in Binani Cement Limited.
The CCI examined horizontal overlap in the manufacture and sale of grey cement and found that the overlap was minor.
The combined market share of the parties in Maharashtra was in the range of 0–5%, with an increment of about 1%.
The CCI concluded that the acquisition was not likely to cause an appreciable adverse effect on competition in India.
CCI Approves Proposed Combination of Capital First with IDFC Bank
March 7, 2018
The Competition Commission of India approved the amalgamation of Capital First Limited, Capital First Home Finance Limited and Capital First Securities Limited into IDFC Bank Limited.
Capital First was engaged in retail lending, business loans, personal loans, vehicle loans and consumer durable loans.
IDFC Bank was one of the leading banks in India with headquarters in Mumbai.
The CCI observed horizontal overlaps in MSME loans, vehicle loans, personal loans, corporate loans and distribution of insurance products.
However, the combined market share of the parties in each overlapping segment was in the range of 0–5%.
The CCI held that the proposed combination was not likely to have appreciable adverse effect on competition in India.
European Commission Approves Bayer’s Acquisition of Monsanto Subject to Conditions
March 21, 2018
The European Commission approved Bayer’s acquisition of Monsanto subject to several commitments designed to address competition concerns.
Monsanto was a major producer of seeds, plant biotechnology traits and glyphosate, while Bayer was a leading supplier of pesticides worldwide.
The proposed acquisition would create the world’s largest integrated pesticides and seeds company.
The Commission examined more than 2,000 product markets and reviewed approximately 2.7 million internal documents.
Bayer offered several commitments, including divestment of its vegetable seed business and most of its global Broadacre seeds and traits business to BASF SE.
Bayer also committed to divest Monsanto’s nematode seed treatment assets and license digital agriculture offerings to BASF SE.
Based on these commitments, the European Commission approved the acquisition.
IN-HOUSE CONTRIBUTORS
Parnika Medhekar
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Doc ID: CL/26/18
