November 16, 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.

Consumer coalition forms to fight health insurance mergers.  Two U.S. consumer groups have formed a coalition with New York labor unions to press antitrust regulators to oppose big insurance mergers that would cut the number of nationwide for-profit health insurers from five to three.  The Coalition to Preserve Patient Choice, made up of the Consumer Federation of America, Consumer Action and others, was formed because of concern about Anthem Inc’s purchase of Cigna Corp for $47 billion and Aetna Inc’s decision to buy Humana Inc for $37 billion, according to the coalition.

US Sues Over Proposed Deal Between United, Delta at Newark.  The federal government wants to block a deal that would strengthen United Airlines’ control over Newark Liberty International Airport, saying that it would drive up fares that are already high.  The U.S. Department of Justice Department is suing to block a deal that would let United acquire 24 takeoff and landing slots at Newark from Delta Air Lines.  According to federal officials, United already controls 73 percent of the slots at the airport, which serves 35 million passengers a year.

Barclays to pay $120 million in U.S. Libor litigation: lawyers.  Barclays has agreed to pay $120 million to settle private U.S. litigation accusing it of conspiring with rivals to rig the benchmark interest rate known as Libor, according to lawyers for the plaintiffs.  The British bank is the first to resolve claims by so-called “over-the-counter” investors that transacted directly with banks comprising a panel to determine Libor, or the London Interbank Offered Rate.  Libor is used to set rates on hundreds of trillions of dollars of transactions, including for credit cards, student loans and mortgages.

Staples, Office Depot in talks to transfer corporate contracts: WSJ.  Staples and Office Depot, which are seeking to merge, are in talks with wholesaler Essendant to transfer about $600 million of corporate contracts to satisfy U.S antitrust concerns, according to the Wall Street Journal.  The terms of the divestiture proposal could change during talks with Federal Trade Commission officials, the Journal said, citing sources.  However, it is uncertain whether the concessions will satisfy the FTC.

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Categories: Antitrust Enforcement, Antitrust Litigation

    November 9, 2015

    The Antitrust Week In Review

    Google says an EU antitrust fine would be ‘inappropriate.’  Google is hitting back at European Union antitrust regulators’ threats of a hefty fine, saying this would be inappropriate because of the unusual nature of the case and its willingness to settle the case with concessions last year.  In its reply to the European Commission’s charge sheet, the world’s most popular search engine also criticized regulators for not taking into account the fact that it was offering a free search service.  The company’s robust defense came after the Commission capped a five-year investigation with accusations that Google distorted search results to favor its shopping service, harming both rivals and users.

    Ex-Player’s Suit Challenges N.C.A.A.’s Transfer Rules.  A former college football player has filed suit against the N.C.A.A., charging that the association’s transfer rules and limits on scholarships violate United States antitrust laws. The lawsuit, filed in federal court in Indianapolis on Thursday on behalf of the former Weber State cornerback Devin Pugh, seeks to allow players to transfer freely between colleges and to abolish the cap on football scholarships — currently 85.  N.C.A.A. rules require basketball and football players in its top tier of competition to sit out a season if they change universities, unless they are granted a waiver by the N.C.A.A.

    EU antitrust regulators charge 10 Asian capacitor makers over cartel.  EU antitrust regulators are charging that 10 Asian makers of electrolytic capacitors illegally fixed prices through a cartel over a 17-year period.  The European Commission said the cartel operated from 1997 to 2014, with the companies holding a series of multilateral meetings in Japan to discuss future market trends, prices and customer data.  Electrolytic capacitors control the flow of electricity in a variety of products including smartphones, TVs, games consoles and cameras.

    EU regulators want to boost national antitrust powers, seek feedback.  EU antitrust regulators are seeking public feedback over how to strengthen national competition authorities in the 28-country bloc, some of whom are currently limited in their access to cloud-based information or in the amount of penalties they can impose.  European Competition Commissioner Margrethe Vestager said that while some agencies enjoyed the same powers as the European Commission, some lacked essential tools to deter anticompetitive practices.

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    Categories: Antitrust Enforcement, Antitrust Litigation, International Competition Issues

      November 2, 2015

      The Antitrust Week In Review

      Apple Asks U.S. Supreme Court to Toss e-Books Antitrust Decision.  Apple is asking the U.S. Supreme Court to overturn the decision of the U.S. Court of Appeals for the Second Circuit that found the iPad maker conspired with five publishers to increase e-book prices.  Apple is seeking review of the June ruling that favored the U.S. Department of Justice and found the company liable for engaging in a conspiracy that violated federal antitrust laws.  Apple is claiming that the appellate decision contradicts Supreme Court precedent and would “chill innovation and risktaking.”

      Walgreens to Buy Rite Aid for $9.4 Billion.  As companies throughout the health care industry accelerate the pace of consolidation, two of the country’s biggest drugstore chains have agreed to combine to create a new giant.  Walgreens Boots Alliance is seeking to buy Rite Aid for more than $9.4 billion, which would significantly bolster its influence with drug makers and pharmacy benefit managers.  But the combination may draw a skeptical eye from antitrust enforcers concerned about a few big chains gaining effective control of the retail pharmacy market.

      U.S. Justice Dept. Rejects Electrolux Proposal on GE Appliance Business.  The U.S. Justice Department has rejected an Electrolux offer to settle a fight over whether the Swedish company would be allowed to buy General Electric’s appliance business, saying it was inadequate.  According to the Justice Department, “the proposal was well short of replacing competition” that would have been lost because of the deal.  The government’s rejection of the deal was revealed on Friday at a hearing preceding a mini-trial set to begin in the U.S. District Court for the District of Columbia on Nov. 9 to determine if the $3.3 billion deal can go forward.

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      Categories: Antitrust Enforcement, Antitrust Litigation

        October 20, 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.

        Deutsche Telekom Said to Weigh New Antitrust Complaint Against Google.  Deutsche Telekom, the German telecom company, is expected to file a formal antitrust complaint against Google’s Android mobile software with European competition authorities in the coming weeks, according to sources.  Deutsche Telekom, which owns a controlling stake in T-Mobile US, the cellphone carrier, is an outspoken critic of United States tech companies’ dominance over how Europeans access online services.   The complaint, which may be submitted by early November, focuses on whether Google uses its Android mobile operating system to unfairly promote its own products like Google Maps and online search over those of rivals.

        U.S. Judge Says Apple e-Books Antitrust Monitor’s Term to End.  U.S. District Judge Denise Cote  has agreed to not extend the term of a court-appointed monitor assigned to review Apple’s antitrust compliance program despite the difficult environment the monitor faced in dealing with the iPad maker.  The decision of the federal judge in Manhattan follows a recommendation by the U.S. Justice Department to not extend the appointment of Michael Bromwich, who was named monitor after Apple was found liable for conspiring to raise e-book prices.  The court noted that Bromwich had “persevered and made numerous recommendations to Apple for the improvement of its antitrust compliance program,” the vast majority of which Apple implemented.

        AB InBev, SABMiller Brew Up $100 Billion Deal.  The world’s two biggest brewers have agreed to create a company making almost a third of the world’s beer after SABMiller accepted an offer worth more than $100 billion from larger rival Anheuser-Busch InBev.  There are significant antitrust hurdles to such a combination, particularly in the United States, where the companies would control about 70 percent of the beer market.  If the deal survives antitrust scrutiny, it would rank in the top five mergers in corporate history and be the largest takeover of a UK company.

        Fantasy Sports Trade Association Subpoenaed by U.S. Prosecutor: WSJ.  The fantasy sports industry’s main trade association has been subpoenaed by the U.S. Attorney’s Office in Tampa, Florida in an ongoing federal investigation into potential antitrust violations or fraud among the large fantasy sports sites, the Wall Street Journal reported.  The subpoena ordered the Fantasy Sports Trade Association to produce copies of the minutes of its board meetings, according to the report.

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        Categories: Antitrust Enforcement, Antitrust Litigation, International Competition Issues

          October 12, 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.

          Apple ‘own worst enemy,’ U.S. antitrust monitor says in report. Apple’s antitrust compliance program has improved, but the company continues to throw up roadblocks to a court-appointed monitor overseeing the program, the monitor reported to a federal judge. Michael Bromwich, who was assigned to monitor Apple’s internal antitrust policies after U.S. District Judge Denise Cote found the company liable for conspiring to raise e-book prices, said Apple was acting as “its own worst enemy” by continuing to raise objections to his requests for information.

          EU’s Vestager Not Planning to Rush Google, Gazprom Antitrust Cases. The European Union’s antitrust case against Gazprom will continue despite concessions from the Russian gas producer, meant to settle charges it abused its dominance in eastern and central Europe, according to the EU’s antitrust chief. European Competition Commissioner Margrethe Vestager also reported that it would take time to conclude the EU’s five-year-old Google case, as she reviewed the internet search group’s reply to charges of favoring its services over rivals.

          Supreme court won’t hear challenge to baseball antitrust immunity. The U.S. Supreme Court has rejected a challenge to Major League Baseball’s long-standing exemption from U.S. antitrust laws brought by San Jose as part of the California’s city’s effort to become the new home of the Oakland Athletics. The court’s decision not to take the case means a January appellate ruling that said San Jose cannot seek a court order allowing the Athletics to move to the city remains intact.

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          Categories: Antitrust Enforcement, Antitrust Litigation, International Competition Issues

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