Insurance

Anticompetitive practices

The Portuguese Competition Authority imposes record fine of € 54 million for a cartel in the markets for insuring workplace accidents, health, and cars (Lusitania / Zürich)
Van Bael & Bellis (Brussels)
On 1 August 2019, the Portuguese competition authority (Autoridade da Concorrência, “AdC”) published a press release in which it announced that it had imposed total fines of € 42 million on two insurance companies (Lusitania and Zürich), two board members and two directors for, inter alia, (...)

The Portuguese Competition Authority imposes the highest fines ever applied for a cartel in the financial sector (Lusitania / Zurich)
Portuguese Competition Authority (Lisbon)
The first cartel sanctioned by the AdC in the Portuguese financial sector has the highest fines ever applied* The AdC applied a fine totalling more than €54 million on insurance companies, board members and directors involved in the “insurer cartel”. The proceedings is now concluded with the (...)

The EU Commission opens investigation into an insurance association in Ireland to assess whether the conditions of access to its Insurance Link data pooling system may restrict competition (Insurance Ireland)
DG COMP (Brussels)
Antitrust: Commission opens investigation into Insurance Ireland data pooling system* The European Commission has opened a formal antitrust investigation into Insurance Ireland to assess whether the conditions of access to its Insurance Link data pooling system may restrict competition, in (...)

The EU Commission opens formal investigation into insurance provider to determine whether its access to a data pooling system may breach EU law competition rules (Insurance Ireland)
Norton Rose Fulbright (Brussels)
EU COMMISSION INVESTIGATES INSURANCE INFORMATION EXCHANGE* On May 14, the European Commission announced the opening of a formal antitrust investigation into Insurance Ireland to assess whether the conditions of access to its InsuranceLink data pooling system may restrict competition, in breach (...)

The German Competition Authority publishes a paper summarizing its sector inquiry into online price comparison websites
Court of First Instance of Namur (Namur)
On 4 February 2019, the German Federal Cartel Office (“FCO”) published a fifth paper in its series “Competition and Consumer Protection in the Digital Economy”. The paper summarizes the sector inquiry into online comparison websites in the travel, energy, insurance, telecommunications and financial (...)

The Portuguese Competition Authority fines two insurance companies for market sharing (Fidelidade – Companhia de Seguros / Multicare – Seguros de Saúde)
Portuguese Competition Authority (Lisbon)
AdC imposes fines of €12 million on insurance companies for cartel settlement* The Portuguese Competition Authority (Autoridade da Concorrência – AdC) imposed fines in the total amount of €12 million on the insurers Fidelidade – Companhia de Seguros and Multicare – Seguros de Saúde for market (...)

The Portuguese Competition Authority sends a statement of objection to five insurance companies and their directors and managers for participating in a cartel (Fidelidade / Multicare / Seguros de Saúde / Seguradoras Unidas / Zurich Insurance)
Portuguese Competition Authority (Lisbon)
AdC issues Statement of Objections to 5 insurance companies and 14 directors and managers for participating in a cartel * The Portuguese Competition Authority (Autoridade da Concorrência - AdC) issued a Statement of Objections to the insurance companies Fidelidade – Companhia de Seguros, (...)

The US District Court of the Southern District of Ohio grants three pretrial motions and dismisses the entire case with prejudice because of the fail to plea a rule of reason case in the hospital sector (The Medical Center at Elizabeth Place / Premier health)
McDermott Will & Emery (Chicago)
District Judge Walter H. Rice of the Southern District of Ohio granted three pretrial motions brought by the Defendants on the eve of trial in The Medical Center at Elizabeth Place, LLC v. Premier Health Partners, et al., Case No. 3:12-cv-26, 2017 WL 3433131 (S.D. Ohio Aug. 9, 2017), and denied (...)

Dominance

The French Competition Authority fines a company for non-compliance with commitments in the funeral insurance market in La Réunion (Mutualité de la Réunion)
French Competition Authority (Paris)
The Autorité de la concurrence has fined La Mutualité de la Réunion for non-compliance with commitments* In brief The Autorité has imposed a fine of €200,000 on La Mutualité de la Réunion (MR) for failing to comply with part of the commitments it had entered into before the Autorité that aimed to (...)

The Indian Competition Authority dismisses claim submitted against a leading insurance company and closes the case at prima facie stage (Indian Chemical Council / General Insurance Corporation of India)
Shardul Amarchand Mangaldas (New Delhi)
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Shardul Amarchand Mangaldas (New Delhi)
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Shardul Amarchand Mangaldas (New Delhi)
The CCI rejected at prima facie stage a complaint by the Indian Chemical Council (ICC) that a leading reinsurer, the General Insurance Corporation of India (GIC), had abused its dominant position. The ICC alleged that GIC was, with its very high market share, dominant in the overall (...)

The Korean FTC fines a company and imposes remedies for blocking potential rivals from entering the aviation reinsurance market (Korean Re)
Korea Fair Trade Commission (Seoul)
The Korea Fair Trade Commission (headed by Chairperson Kim Sang- Jo, hereinafter referred to as the ‘KFTC’) decided to impose remedies and approximately 7.6 billion won penalty surcharges* against Korean Reinsurance Co., (hereinafter referred to as ‘Korean Re’) for blocking potential rivals from (...)

The US DoJ settles a lawsuit regarding a hospital system anti-steering provisions againts health plans (Charlotte-Mecklenburg Hospital Authority)
Sheppard Mullin (Century City)
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Sheppard Mullin (San Francisco)
U.S. Department of Justice Settles Anti-Steering Suit Against Hospital System; First Such Settlement After Amex SCOTUS Decision* On November 15, 2018, the Antitrust Division of the U.S. Department of Justice settled a two-and-a-half year long lawsuit against Atrium Health, a North Carolina (...)

The US DoJ reaches a settlement with a healthcare system related to provisions in a contract between the health system and commercial insurers (Charlotte Mecklenburg Hospital Authority)
McDermott Will & Emery (Chicago)
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McDermott Will & Emery (Washington)
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McDermott Will & Emery (Chicago)
THE LATEST: DOJ Announces Settlement with Carolinas Health System (Atrium Health) After Two Years of Litigation* The Department of Justice (DOJ) announced last week that it and the State of North Carolina have reached a settlement with Carolinas Healthcare System / Atrium Health relating to (...)

The US District Court of Rhode Island finds that a dominant health insurer’s refusal to negotiate in good faith with a healthcare provider in an attempt to block its market entry can be contrary to the Sherman Act (Steward Health Care System / Blue Cross)
Polsinelli (Washington)
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Polsinelli (Washington)
This article has been nominated for the 2019 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. On April 23, a federal court in Rhode Island fired a warning shot over the bow of dominant health insurers across the country, holding that a refusal to negotiate (...)

Mergers

The Indian Competition Commission clears merger of health insurer (Apollo Munich / HDFC ERGO)
Shardul Amarchand Mangaldas (New Delhi)
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Shardul Amarchand Mangaldas (New Delhi)
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Shardul Amarchand Mangaldas (New Delhi)
The CCI cleared the proposed merger of health insurer Apollo Munich Health Insurance Company (Apollo Munich) into HDFC ERGO General Insurance Company (HDFC ERGO). HDFC ERGO is a joint venture between HDFC and ERGO International AG. The CCI found that Apollo Munich and the HDFC Group overlapped (...)

The EU Commission clears a merger subject to remedies in the markets of insurance broking services (JLT / MMC)
DG COMP (Brussels)
Mergers: Commission approves acquisition of Jardine Lloyd Thompson by Marsh & McLennan Companies, subject to conditions* The European Commission has approved, under the EU Merger Regulation, the acquisition of Jardine Lloyd Thompson (“JLT”) by Marsh & McLennan Companies (“MMC”). The (...)

The Indian Competition Authority approves purchase of 40% equity share in non-life insurer by international insurer with only life insurance business in the country (Ageas / RSGI Royal Sundaram General Insurance)
Vaish Associates Advocates (New Delhi)
CCI approves acquisition of 40% equity share capital of Royal Sundaram General Insurance Company Limited by Ageas* By way of order dated 19.12.2018, the Commission has approved the acquisition of 40% equity share capital of Royal Sundaram General Insurance Company Limited (“RSGI/ Target”) by (...)

The Danish Competition Council approves a merger between two private insurance companies based on the commitments submitted by one of them (Tryg / Alka)
Danish Competition and Consumer Authority (Copenhagen)
The Danish Competition Council has approved the merger between Tryg Forsikring A/S and Forsikrings-Aktieselskabet Alka subject to commitments* On 19 March 2018 the Danish Competition and Consumer Authority (hereinafter “DCCA”) received a complete notification of Tryg Forsikring A/S’ (hereinafter (...)

The Turkish Competition Authority holds that the indirect changes on the shareholding structures of two companies do not constitute concentrations and grants a negative clearance to the transaction (Turkland / Groupmed)
ELIG Gürkaynak Attorneys-at-Law (Istanbul)
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ELIG Gürkaynak Attorneys-at-Law (Istanbul)
The Turkish Competition Board (“ Board ”) resolved that the transaction would not be deemed as a concentration requiring mandatory merger control filing before the Turkish Competition Authority (the “ Authority ”), given that the transaction would result in shifting alliances. To that end, the (...)

The Polish Competition Authority approves an acquisition of control by the leading Polish insurance company of a direct competitor (Powszechny Zakład Ubezpieczeń)
Hansberry Tomkiel (Warsaw)
In its decision no DKK 56/2017 of 6th April 2017 (the “Decision”), the Polish Office for Competition and Consumer Protection (the “Competition Authority”) gave its consent to the acquisition of control of Bank Polska Kasa Opieki S.A. (“Bank Pekao”) and its subsidiaries engaged in investment and (...)

The US District Court for the District of Columbia blocks two proposed mergers in the insurance sector brought and litigated under the Obama administration (Aetna / Humana and Anthem / Cigna)
Skadden, Arps, Slate, Meagher & Flom (New York)
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Skadden, Arps, Slate, Meagher & Flom (New York)
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Skadden, Arps, Slate, Meagher & Flom (New York)
In a continuation of recent Department of Justice (DOJ) successes challenging mergers, the U.S. District Court for the District of Columbia recently enjoined two more proposed mergers brought and litigated under the Obama administration. Aetna’s $37 billion proposed acquisition of Humana was (...)

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 Aids

The EU General Court annuls a decision of the Commission that found no State aid because it considered the recipient of the measure was not an undertaking (Dôvera zdravotná poist’ovňa)
Arendt & Medernach (Luxembourg)
Application of State aid and competition law rules to the health sector reinforced by the General Court* The General Court has annulled a decision of the EU Commission finding no state aid because the recipient of the measure, a Slovak health insurance body was not an undertaking. According (...)

The EU General Court annuls a Commission finding that state measures in favour of health insurance organisations did not constitute state aid, and holds that the economic nature of an activity is determined by the presence of operators seeking to make a profit (Dôvera Zdravotná Poist’ovña)
McDermott Will & Emery (Brussels)
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McDermott Will & Emery (Paris)
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Norton Rose Fulbright (Brussels)
This State aid case gives interesting indications regarding the definition of an undertaking and the economic or non-economic nature of its activities. The GCEU pointed out that merely being in a position of competition on a given market does not determine the economic nature of an activity, (...)

The EU Court of Justice finds that a Member State can only successfully claim under the private investor principle if it can demonstrate that its decision to invest is based on a prior economic assessment of the profitability of the investment (SACE / SACE BT)
College of Europe (Bruges)
Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Regulatory

The OECD holds a roundtable on designing the publicly funded healthcare markets
OECD - Competition Division (Paris)
Many people depend on publicly funded healthcare to lead a productive, fulfilling, and satisfying life. While there is little guidance on where, or how, to introduce choice and competition in healthcare services, there has nevertheless been a steady movement towards the greater use of market (...)

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