August 2016

Anticompetitive practices

The Indian Competition Authority re-imposes fines on 11 major cement manufacturers for forming a cartel (Builders’ Association of India / Cement Manufacturers’ Association)
Vaish Associates Advocates (New Delhi)
Competition Commission of India (CCI) re-imposes penalty on 11 cement companies for cartelisation* CCI by its order dated August 31, 2016 has re-imposed penalties on 11 cement manufacturers and Cement Manufacturers Association(CMA) for violation of Section 3(3)(a) and 3(3)(b) of the Act. The (...)

The Chinese High Court of Beijing rejects an appeal in China’s first follow-on private action against six infant formula suppliers for engaging in resale price maintenance (Junwei Tian / Carrefour / Abbott)
Freshfields Bruckhaus Deringer (Hong Kong)
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Freshfields Bruckhaus Deringer (London)
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Freshfields Bruckhaus Deringer (Beijing)
In one of the most notable decisions at the end of last year, the Beijing High Court rejected an appeal in China’s first follow-on private action in Junwei Tian v. Beijing Carrefour Shuangjing Store and Abbott Shanghai. The claim followed the decision in 2013 of China’s National Development and (...)

The Polish Competition Authority fines three brothers for bid-rigging (Jan / Leon / Sławomir Rybak)
WKB Wierciński Kwieciński Baehr (Warsaw)
By way of its decision of 19 August 2016, the Polish Competition Authority (Prezes Urzędu Ochrony Konkurencji i Konsumentów, the “PCA”) imposed a fine of over PLN 40,000 (approx. EUR 10,000) on three timber companies engaged in bid rigging, influencing the outcome of tender for logging and timber (...)

The US Court of Appeal for the Sixth Circuit reaffirms necessity for recoupment in predatory pricing complaints (Energy Conversion)
Cleary Gottlieb Steen & Hamilton (Rome)
Sixth Circuit dismisses a predatory pricing complaint in the solar panel industry* On 18 August 2016 the United States Court of Appeals for the Sixth Circuit, dismissed a predatory pricing complaint filed by Energy Conversion, a solar panel manufacturer based in the United States, against (...)

The Arbitration Court of Moscow confirms the fine imposed against a company for cartel in the software market (RDIEX)
Russian Federal Antimonopoly Service (Moscow)
Arbitration Court pronounced legitimacy of a more 23.4 million RUB fine for an anticompetitive agreement* On 17 August 2016, Moscow Arbitration Court pronounced legitimacy of a fine imposed by the Federal Antimonopoly Service (FAS Russia) upon “RDIEX Razumnie Delovie Tekhnologii” JSC. The (...)

The US FTC charges an undertaking for an alleged invitation to collude with another undertaking that served as both a competitor and a supplier (Fortiline)
Morgan Lewis (New York)
This article has been nominated for the 2017 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. A dual distribution relationship does not protect against Section 5 liability for an invitation to collude. For the first time, the Federal Trade Commission (...)

The UK Competition Authority fines a company specialized in online sales of posters and frames for cartel (Trod)
UK Competition & Markets Authority - CMA (London)
CMA issues final decision in online cartel case* The CMA has today issued a formal decision that 2 online sellers of posters and frames broke competition law. This follows the announcement on 21 July 2016 that Trod Ltd had admitted agreeing with GB eye Ltd (trading as ‘GB Posters’) that they (...)

The Hungarian Competition Authority fines providers of medical products and medical devices for bid-rigging (Chirmax)
Hungarian Competition Authority (Budapest)
The GVH imposed fines for coordination of bids in tenders of hospitals* In its decision the Gazdasági Versenyhivatal (Hungarian Competition Authority) established that, in order to influence the tender notice, share the market and fix prices, B. Braun Medical Magyarország Orvostechnológiai Kft., (...)

The Polish Supreme Court quashes the judgment of the Court of Appeal regarding inadequate explanation of the factual basis of the decision issued by the Polish Competition Authority (The National Chamber of Notaries)
Office of Competition and Consumer Protection (Warsaw)
In its decision of 19 April 2010, the President of the Office of Competition and Consumer Protection (hereinafter the “Polish Competition Authority”) imposed a fine on the National Chamber of Notaries for anticompetitive conduct. The Polish Competition Authority found that the National Chamber of (...)

The Hungarian Competition Authority fines five suppliers of medical suture products for bid rigging and exempts one of them under the leniency provisions (Braun Medical / Chairman / Johnson&Johnson / Staplecare / SurgiCare / Variomedic)
DLA Piper (Budapest)
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DLA Piper (Budapest)
The Competition Authority of Hungary (GVH) has in August 2016 imposed fines on five suppliers of medical suture products (needles and threads for medical/hospital use) for bid rigging in an amount of around EUR 770.000, exempting one of them under the leniency provisions. The infringement was (...)

The Hungarian Competition Authority fines a distributor of meat products for price resale maintenance (Pick)
Hungarian Competition Authority (Budapest)
Pick’s pricing practice is unlawful – The GVH has imposed a fine due to the fixing and setting of and minimum prices during temporary sales (promotions)* According to the decision of the Hungarian Competition Authority (Gazdasági Versenyhivatal – GVH), from January 2009 to December 2014, Pick (...)

Unilateral Practices

The Indian Competition Authority dismisses allegations of predatory pricing in the market for auto-rickshaw services (Vilakshan Kumar Yadav / ANI Technologies)
Vaish Associates Advocates (New Delhi)
CCI dismisses allegation of predatory pricing against ANI Technologies Ltd. in New Delhi and NCR* The CCI has dismissed allegation of abuse of dominant position through predatory by Ola Cabs and Taxi For Sure operator ANI Technologies Pvt. Ltd. The Information was filed by three individuals (...)

The Danish Maritime and Commercial High Court rules on excessive pricing concerning the delivery of electricity (ELSAM III)
University of Copenhagen - Faculty of Law
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Accura (Copenhagen)
Summary of the case In an August 2016 ruling the Danish Maritime and Commercial High Court (Sø- & Handelsretten) confirmed that the Danish energy incumbent DONG Energy A/S (“DONG”) had infringed Article 102 and the Danish equivalent by charging excessive prices for the delivery of (...)

The Indian Competition Appellate Tribunal upholds the Competition Authority’s dismissal of abuse of dominance allegations against a mining company in the market for chrome ore (All Odisha Steel Federation / Orissa Mining Corporation)
Vaish Associates Advocates (New Delhi)
Competition Appellate Tribunal (COMPAT) upholds CCI order dismissing abuse of dominance allegation against Orissa Mining Corporation (OMC)* COMPAT by its order dated August 30, 2016 has upheld order of CCI which had dismissed allegations of abuse of dominance by OMC has been indulging in (...)

The Moscow Arbitration Court confirms that a technology company has abused its dominance on the market of pre-installed app stores (Google)
Russian Federal Antimonopoly Service (Moscow)
Appeal Court supported FAS in a dispute with “Google”* On 17 August 2016, the 9th Arbitration Appeal Court pronounced legitimacy and reasonableness of the decision of the Federal Antimonopoly Service (FAS Russia) on a case against “Google” abusing dominance on the market of preset application (...)

The Indian Competition Appellate Tribunal upholds the Indian Competition Authority’s dismissal of abuse of dominance allegations against a global telecom provider in the market for international roaming services (Vishwambhar Marutirao Doiphode / Vodafone India)
Vaish Associates Advocates (New Delhi)
COMPAT upholds CCI order dismissing abuse of dominance allegation against Vodafone* COMPAT by its order dated August 16, 2016 has upheld order of CCI whereby it declined to order an investigation into the allegations of abuse of dominance by Vodafone India for levying exorbitant charges for (...)

The Portuguese Competition Authority sends a statement of objections to a company specialized in standard mail services suspected of abuse of dominance (CTT)
Portuguese Competition Authority (Lisbon)
The Portuguese Competition Authority sends Statement of Objections to CTT – Correios de Portugal S.A.* The Portuguese Competition Authority (Autoridade da Concorrência – AdC) confirms having sent a Statement of Objections to CTT – Correios de Portugal S.A. (CTT) outlining its preliminary view that (...)

The US Court of Appeals for the Seventh Circuit rules that a consumer product manufacturer’s failure to offer all size of the product is not exposed to a claim of discrimination under the Robinson-Patman Act (Woodman’s Food Market / Clorox)
Baker Botts (Brussels)
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Baker Botts (Washington)
Does a consumer product manufacturer’s failure to offer all sizes of the product to all customers expose it to a claim of discrimination in providing “promotional services or facilities,” under the federal antitrust law known as the Robinson-Patman Act (“RPA”)? No, according to the U.S. Court of (...)

Mergers

The Indian Competition Appellate Tribunal upholds the Competition Authority’s fine for gun jumping imposed on manufacturer of industrial chemicals and fertilizers (SCM Soilfert / Deepak Fertilizers and Petrochemicals)
Vaish Associates Advocates (New Delhi)
COMPAT upholds penalty imposed on SCM Soilfert for “gun-jumping”* COMPAT by its order dated August30, 2016 has upheld the penalty imposed by the CCI on SCM Soilfert for failure to file a notice under Section 6(2) of the Competition Act, 2002 (the Act) for a combination. Deepak Fertilizers and (...)

The Australian Competition Authority publishes draft media merger guidelines
University of New South Wales (Sydney)
Australian draft media merger guidelines: a review* Background The ACCC released its draft media merger guidelines in August 2016. Given the previous merger guidelines were released in 2006, these drafts outline the first proposed changes in over ten years. Critically these guidelines come in (...)

The UK Competition Authority opens an in-depth investigation concerning a merger in the market of supply of ATMs (Diebold / Wincor)
UK Competition & Markets Authority - CMA (London)
CASHPOINT MERGER FACES IN-DEPTH INVESTIGATION* Diebold and Wincor face an in-depth merger investigation by the CMA unless the companies offer undertakings to address competition concerns. Diebold, Incorporated (Diebold) and Wincor Nixdorf AG (Wincor) both supply ATMs (cashpoints) to banks and (...)

The UK Competition Authority opens an in-depth investigation concerning a merger between two toy suppliers (VTech / LeapFrog)
UK Competition & Markets Authority - CMA (London)
MERGER OF TOY SUPPLIERS COULD FACE IN-DEPTH INVESTIGATION* VTech could face an in-depth merger investigation over competition concerns arising from its completed merger with LeapFrog. VTech Holdings Ltd (VTech) and LeapFrog Enterprises Inc (LeapFrog) are 2 of the 3 largest suppliers of (...)

The Ukrainian Competition Authority adopts a new merger regulation
Arzinger (Kiev)
New Merger Regulation adopted in Ukraine* On August 19, 2016 the new Merger Regulation was adopted in Ukraine. This step is the next improvement after increasing notification thresholds aimed at improving merger control regime effectiveness in Ukraine. The key novelties of the new Merger (...)

The Ukrainian Competition Authority adopts a merger regulation
Asters (Kiev)
On 19 August 2016 the new Merger Regulation became effective in Ukraine. It simplifies the merger review procedure in two ways. First, in most cases, the Antimonopoly Committee of Ukraine (AMC) reduces the amount of information required from the parties. Second, the AMC takes measures to (...)

The EU Commission opens an in-depth investigation concerning a merger on the chemical products market (Dow / DuPont)
European Commission - DG COMP (Brussels)
Mergers: Commission opens in-depth investigation into proposed merger between Dow and DuPont* The Commission has opened an in-depth probe to assess whether the proposed merger of Dow and DuPont is in line with the EU Merger Regulation. The Commission will investigate further whether the deal (...)

The UK Competition Authority imposes a behavioural commitments akin to a structural divestment on an undertaking specialist in the magazine sector (Future / Miura)
McDermott Will & Emery (Paris)
UK CMA IMPOSES BEHAVIOURAL COMMITMENTS AKIN TO A STRUCTURAL DIVESTMENT: THE SCI-FI MAGAZINES CASE* Divestments often constitute the most appropriate remedy to resolve antitrust concerns in the context of merger control. However, behavioural commitments may also have the same commercial effects (...)

The EU Commission clears a merger, subject to remedies, in the lifting equipment market (Konecranes / Terex)
European Commission - DG COMP (Brussels)
MERGERS: COMMISSION APPROVES KONECRANES’ ACQUISITION OF TEREX’S CRANE AND CONTAINER HANDLING BUSINESS, SUBJET TO CONDITIONS* The European Commission has cleared under the EU Merger Regulation the acquisition by Konecranes of Terex’s crane and container handling business, MHPS. The decision is (...)

The EU Commission clears a merger subject to remedies in the pharmaceutical sector (Boehringer Ingelheim / Sanofi)
European Commission - DG COMP (Brussels)
MERGERS: COMMISSION CLEARS ACQUISITION OF BOEHRINGER INGELHEIM’S CONSUMER HEALTH BUSINESS BY SANOFI, SUBJEC TO CONDITIONS* The European Commission has approved under the EU Merger Regulation the proposed acquisition of the consumer health business of Germany’s Boehringer Ingelheim by Sanofi of (...)

The EU Commission clears acquisition that creates global number two animal health company, subject to fix-it-first remedy including a technology transfer of vaccines (Boehringer Ingelheim / Sanofi)
European Commission - DG COMP (Brussels)
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Sullivan & Cromwell (Brussels)
BOEHRINGER INGELHEIM/SANOFI ANIMAL HEALTH - THE TIMELY INJECTION OF A FIX-ITFIRST REMEDY* In a nutshell: The acquisition of Sanofi’s animal health business by Boehringer Ingelheim led to competition concerns in a number of animal vaccine and pharmaceutical markets. The remedy put forward (...)

The German Competition Authority informs that the merger of long-distance bus operators will not be examined (Flix Mobility / Deutsche Post Mobility)
German Competition Authority (Bonn)
The Bundeskartellamt clarifies: Merger of long-distance bus operators not examined by the Bundeskartellamt* Today FlixMobility GmbH (known as "FlixBus“), Munich, announced its takeover of the long-distance bus business of Deutsche Post Mobility GmbH (known as "Postbus“), Bonn. The (...)

The EU Commission clears a merger, subject to remedies, in the telecommunication market and rejects a referral request issued by the Dutch competition authority (Vodafone / Liberty Global)
European Commission - DG COMP (Brussels)
MERGERS: COMMISSION CLEARS VODAFONE/LIBERTY GLOBAL TELECOMS JOINT VENTURE, SUBJECT TO CONDITION; REJECTS REFERRAL REQUEST BY DUTCH COMPETITION AUTHORITY * The European Commission has cleared under the EU Merger Regulation the proposed creation of a joint venture in the Netherlands by mobile (...)

The EU Commission conditionally clears the creation of a joint venture between two mobile telecom operators (Vodafone / Liberty Global)
Van Bael & Bellis (Brussels)
On 3 August 2016, the European Commission conditionally cleared the creation of a joint venture between mobile telecom operator Vodafone and cable company Liberty Global in the Netherlands. The joint venture will offer unified communications services and will compete with KPN, the only other (...)

The US FTC annonces increasing of the civil penalties for violations of the Clayton act
Baker McKenzie (Chicago)
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Jenner & Block (Washington)
The Federal Trade Commission announced that, effective on August 1, 2016, the civil penalties for the following violations will be increased as follows: • Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)(premerger filing notification violations under the Hart-Scott- Rodino (HSR) (...)

The Indian Competition Authority approves a merger and amalgamation between two insurance companies (L&T General Insurance / HDFC Ergo)
Vaish Associates Advocates (New Delhi)
CCI approves acquisition and amalgamation between HDFC Ergo and L&T* The proposed combination relates to acquisition of 100% shareholding in L&T General Insurance Company Limited (“LTGI”) by HDFC Ergo General Insurance Company Limited (“HDFC Ergo”) from Larsen and Toubro (L&T). (...)

State Aid

The EU Commission confirms the illegal granting of State aid by Ireland to a Big Tech company (Apple)
Antoniou McCollum & Co. (Nicosia)
Introduction Criticism against the European Commission’s State aid decisions over tax arrangements intensified following the August 2016 decision on Apple. In that decision, the Commission found Ireland to have given Apple a benefit of approximately €13bn in illegal State aid through tax (...)

The EU Commission declares Irish tax rulings favoring a Big Tech company to be contrary to State aid provisions (Apple)
Van Bael & Bellis (Brussels)
On 30 August 2016, the European Commission announced its decision finding that Ireland has granted selective tax advantages to Apple. According to the press release of the Commission, the two tax rulings at stake issued by Ireland to Apple substantially and artificially lowered the tax paid by (...)

The EU Commission publishes its largest-ever negative State aid decision regarding tax arrangements, requiring Ireland to recover €13 billion of aid (Apple)
Oxera (London)
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Oxera (Brussels)
I. Introduction 1. On 30 August 2016, the European Commission announced its largest-ever negative State aid decision requiring Ireland to recover €13bn of aid (plus interest) from Apple as a result of its tax rulings with Ireland . In the year leading up to this announcement, the Commission (...)

The EU Commission concludes Ireland granted undue tax benefits to a Big Tech company (Apple)
European Commission - DG COMP (Brussels)
State aid: Ireland gave illegal tax benefits to Apple worth up to €13 billion* The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other (...)

The EU Commission confirms that Ireland granted illegal State aid to a Big Tech company (Apple)
Simmons & Simmons (Luxembourg)
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CMS DeBacker Luxembourg
On 30 August 2016, the EU commission confirmed that in their view, Ireland granted illegal State Aid to Apple. Such State Aid is allegedly granted in the form of a selective tax treatment. The decision is the latest in the EU Commission’s moves to use State Aid principles in a direct tax (...)

The EU Commission refers Ireland to the Court of Justice of the EU for failing to recover illegal tax benefits (Apple)
Gómez-Acebo & Pombo (Brussels)
The European Commission has referred Ireland to the Court of Justice of the EU for failing to comply with its Decision of 30 August 2016. In the said decision, the Commission established that Ireland had granted certain tax benefits to Apple allowing the la er to pay substantially less tax (...)

The EU Commission finds that Ireland granted undue tax benefits to a US leading Big Tech company (Apple)
European Commission - DG COMP (Brussels)
State aid: Ireland gave illegal tax benefits to Apple worth up to €13 billion* The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other (...)

The EU Commission concludes that Ireland granted illegal State aid to a Big Tech company and now must recover the illegal aid (Apple)
Baker Botts (Houston)
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Baker Botts (Washington)
The European Commission concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. The Commission held that this was illegal under EU state aid rules. Ireland must now recover the illegal aid. Both Apple and the Republic of Ireland announced that they will challenge the (...)

The US Government positions itself as a supporter of Ireland regarding the EU Commission’s tax ruling (Apple)
United Nations (New York)
Digesting the Apple tax ruling* Commissioner Vestager’s edict on Apple’s tax arrangements in Ireland sent forceful ripples through both sides of the Atlantic on August 30th, 2016. The European Commission is no stranger to ruffling corporate and sovereign feathers, most famously by blocking the (...)

Procedures

The Beijing High People’s Court dismisses first follow-on damages suit under the Anti-Monopoly Law of China (Mr Tian Junwei / Abbott infant formula)
Hogan Lovells (Beijing)
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University of Melbourne
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China Competition Bulletin (Beijing)
On 22 August 2016, the Beijing High People’s Court issued its judgment in the first follow-on damages antitrust case, dismissing an appeal for insufficient evidence. The judgment was released on 4 November 2016. In the case, the plaintiff, Mr Tian Junwei, had bought a box of Abbott infant (...)

The U.S. DOJ and FTC propose an update of Antitrust Guidelines for the licensing of IP
Weil, Gotshal & Manges (Washington)
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Weil, Gotshal & Manges (New York)
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Weil, Gotshal & Manges (New York)
DOJ, FTC issues proposed update of Antitrust-IP Guidelines* On August 12, 2016, the Department of Justice and Federal Trade Commission released a proposed update of their Antitrust Guidelines for the Licensing of Intellectual Property. While the agencies reinforced many of the existing (...)

The Indian Competition Appellate Tribunal (COMPAT) rules that in an abuse of dominance appeal the appellant is responsible for providing evidence of alleged dominance (Ravinder Kaur Sethi / DLF Universal)
Vaish Associates Advocates (New Delhi)
COMPAT: Upheld CCI Order that onus to produce data to prove alleged dominant position lay upon the Informant* COMPAT by its order dated August 9, 2016 has upheld order of CCI whereby it declined to order an investigation into the allegations of abuse of dominance by DLF Universal Limited and (...)

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