November 17, 2016

New York Attorney General Scores For NFL Fans With NFL Agreement To Drop Mandatory Price Floor On Ticket Resales

By James J. Kovacs

New York Attorney General Eric T. Schneiderman has announced a multi-state settlement with the National Football League (“NFL”) eliminating the NFL’s league-wide usage of a “mandatory price floor” in the secondary ticket market.

NFL rules had required all 32 teams to impose a mandatory price floor on secondary market ticket sales, not only on the NFL-owned Ticket Exchange website, but also on third-party websites sanctioned by the league as secondary market ticket retailers. Under the NFL’s price floor policy, an official seller was not permitted to list tickets for resale at a price lower than the face-value of the ticket.  As a result, NFL fans were forced to pay artificially inflated prices for tickets across the country.

While the mandatory price floor was halted during the investigation, the settlement requires that the NFL will “not reinstate” the league-wide price floor for 10 years. In addition to providing for a small monetary payment to be made to the settling states, the settlement also requires the NFL to refrain from implementing ticketing technologies designed to eliminate competition on the secondary ticket exchanges—a provision which protects resale sites such as StubHub, which have seen their market share squeezed by ticketing rules.  Constantine Cannon has represented StubHub in connection with its challenges to practices that restrain trade in the secondary ticket market.

The NFL settlement is the latest action taken by New York Attorney General’s Office against ticketing practices that it has alleged are unfair and raise costs to consumers. The office issued report earlier this year outlining the harms of mandatory price floors and ticketing fees designed to raise ticket prices on New Yorkers. In June, New York passed legislation proposed by Attorney General Schneiderman to increase penalties on the use of “ticket bots,” programs designed to scoop up large amount of tickets and then resell at higher prices.

New York’s NFL mandatory price floor investigation and settlement was joined by the Attorneys General of the states of Florida, Massachusetts, Ohio, Pennsylvania, and the District of Columbia.


Edited by Gary J. Malone

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Categories: Antitrust and Price Fixing, Antitrust Enforcement, Antitrust Litigation

    August 15, 2016

    The Antitrust Week In Review

    Here are some of the developments in antitrust news this past week that we found interesting and are following.

    South Korea says investigating whether Google broke antitrust laws.  South Korea’s antitrust regulator said on Friday it is looking into whether Google has violated the country’s anticompetition laws, acknowledging formal scrutiny of the global internet search company for the first time.  The Korea Fair Trade Commission (KFTC) disclosed the investigation in a brief statement, without commenting on the nature of the probe nor any potential antitrust violations.  A person familiar with the matter told Reuters last month the KFTC inspected Google’s Seoul headquarters in July.

    Google Fined for Breaking Russian Antitrust Rules With Android.  Russian antitrust officials fined Google $6.8 million on Thursday, a relatively small penalty that nevertheless represents the latest in a growing list of global regulatory problems for the American search giant.  Russian authorities ruled last year that Google had abused its market position with Android, its mobile operating system, by favoring some of its digital services over those of rivals, including the Russian company Yandex.  As part of its ruling, the Federation Antimonopoly Service said that Google’s rivals had not been able to include their own offerings, like digital maps or search, in the Android operating system that powers a majority of smartphones and other mobile devices in Russia.

    Aluminum price-fixing claims rejected by U.S. appeals court.  A U.S. appeals court on Tuesday upheld the dismissal of nationwide antitrust litigation accusing banks and commodity companies of conspiring to drive up aluminum prices by reducing supply, forcing them to overpay.  By a 3-0 vote, the U.S. Court of Appeals for the Second Circuit in Manhattan said so-called commercial end users and consumer end users lacked standing to sue because their alleged antitrust injuries were too far removed from the alleged misconduct.  The plaintiffs had accused Goldman Sachs Group Inc, JPMorgan Chase & Co, the mining company Glencore Plc , and various commodity trading, metals mining and metals warehousing companies of having colluded from 2009 to 2012 to rig prices by hoarding inventory.

    Judge sets Aetna-Humana antitrust trial date for Dec. 5.  The federal judge hearing the U.S. Justice Department’s case to block Aetna Inc’s $34 billion purchase of Humana Inc has set a trial date for Dec. 5, 2016, later than the companies had requested.  Aetna and Humana are fighting the Department of Justice’s lawsuit asserting that combining the two companies will harm consumers and raise prices.

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    Categories: Antitrust and Price Fixing, Antitrust Enforcement, Antitrust Litigation, International Competition Issues

      February 29, 2016

      The Antitrust Week In Review

      Here are some of the developments in antitrust news this past week that we found interesting and are following.

      Dow Chemical settles price-fixing case after Justice Scalia’s death. Dow Chemical has agreed to pay $835 million to settle a decade-long lawsuit on price fixing, saying that the death of Justice Antonin Scalia lessened its chances of overturning the verdict at the Supreme Court.  Dow, which is in the process of merging with Dupont, said on Friday that it decided to settle, without admitting any wrongdoing, citing “growing political uncertainties due to recent events within the Supreme Court.”  Dow had filed a petition in the Supreme Court arguing that a 2013 class-action judgment that Dow had conspired to artificially inflate polyurethane prices violated class action law in multiple ways, particularly with respect to two rulings authored by Justice Scalia, one in 2011 favoring Wal-Mart Stores and another in 2013 favoring Comcast.

      Honeywell Persists in Pursuit of United Technologies. Honeywell has made clear that it is not walking away from its proposed takeover of United Technologies, as a potential battle between the industrial giants became more public on Friday.  In publishing an 11-page pitch to United Technologies on the merits of a merger, Honeywell sought to sway shareholders of its competitor.  Later on Friday, United Technologies issued its latest rebuttal, again contending that a merger of the two—which would yield a nearly $160 billion conglomerate whose offerings run from building cooling systems to advanced jet engines—would never survive antitrust scrutiny.

      EU halts Halliburton, Baker Hughes deal review, awaits details. European Union antitrust regulators have halted their scrutiny of U.S. oilfield services provider Halliburton’s proposed takeover of Baker Hughes because the companies failed to provide some details of the $35 billion deal.  “This is a standard procedure on merger investigations which is activated if the notifying parties do not provide an important piece of information that the Commission has requested from them,” European Commission spokesman Ricardo Cardoso stated.  The EU competition authority will set a new deadline for its decision when it has the required information from the companies.  Antitrust regulators are worried that higher prices and less innovation may follow the proposed merger.

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      Categories: Antitrust and Price Fixing, Antitrust Litigation, International Competition Issues

        January 4, 2016

        The Antitrust Week In Review

        Here are some of the developments in antitrust news this past week that we found interesting and are following:

        RadioShack Antitrust Lawsuit: Sony, Samsung, Toshiba And Others Accused Of Illegal Price-Fixing Conspiracy.  The liquidation trustee for the former retail giant RadioShack is accusing five of the world’s largest consumer electronics companies of illegally conspiring to create an intricate price-fixing scheme that artificially inflated the cost of optical disk drives, a common component present in many devices, computers and appliances.  In a federal antitrust lawsuit filed Wednesday in Northern California, the trustee accused Sony Corporation, Toshiba Corporation, Samsung, Philips Electronics and Light-On IT Corp. of participating in a “six-year price-fixing conspiracy,” which allegedly took place from January 2004 until at least January 2010.

        Dow and DuPont will merge in a $130-billion megadeal, then split 3 ways.  Industrial giants Dow Chemical Co. and DuPont Co. said Friday that they had agreed to merge and form a chemicals and agricultural powerhouse valued at $130 billion.  After the all-stock merger, the new company — to be called DowDuPont —plans to split again into three publicly traded companies, with one focused on agriculture, another on materials and plastics and a third on specialty products.  Given the proposed new company’s size, the deal is expected to receive antitrust scrutiny.

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        Categories: Antitrust and Price Fixing, General

          July 13, 2015

          The Antitrust Week In Review

          Here are some of the developments in antitrust news this past week that we found interesting and are following.

          MasterCard Faces Antitrust Charges in E.U.  European antitrust officials have filed formal charges against MasterCard, accusing the company of harming consumers and retailers by setting artificially high fees for credit card transactions in Europe.  The European Commission said MasterCard had prevented some retailers from processing transactions in countries with lower fees. The commission also said that MasterCard’s fees were unfair to tourists traveling in Europe.

          FTC exploring Apple rules for streaming music rivals in App Store.  U.S. government antitrust regulators are investigating claims that Apple’s treatment of rival streaming music apps is illegal under antitrust law, according to industry sources.  Apple recently launched a new music streaming service, Apple Music.  It also provides the App Store platform for competing streaming services including Jango, Spotify, Rhapsody and others.

          States line up to scrutinize Aetna’s $33 Billion Humana deal.  U.S. insurance regulators and state attorneys general are lining up to examine Aetna Inc’s proposed $33 billion takeover of rival Humana Inc. for potential harm to consumers, complicating what was already expected to be a tough review by federal antitrust authorities.  Insurance commissioners in 18 states including Texas, Kentucky and Florida will study merger documents provided by Humana to determine whether the deal will harm competition and lead to higher insurance premiums or diminished access to healthcare providers.  Moreover, while the U.S. Department of Justice is taking the lead on scrutinizing the transaction, at least three state attorneys general – in Florida, Mississippi and Massachusetts – have stated they will look at the proposed acquisition as well.

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          Categories: Antitrust and Price Fixing, Antitrust Policy, International Competition Issues

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