IN THE NEWS

OFT refers Ryanair's minority stake in Aer Lingus to Competition Commission

The OFT commenced an investigation into Ryanair's stake of 29.8 per cent in Aer Lingus in October 2010. The OFT was unable to act prior to this date because Ryanair's bid for outright control of Aer Lingus was under review by the European Commission and European Courts. The OFT's investigation was also suspended on two occasions, once by the OFT because it had insufficient information with which to proceed, and once due to a legal challenge by Ryanair, which was dismissed by the Court of Appeal on 22 May 2012. The OFT has now concluded that Ryanair's stake may give it the ability to exercise material influence over the commercial policy of Aer Lingus and that there is a realistic prospect that its stake has resulted or will result in a substantial lessening of competition on a number of Ryanair and/or Aer Lingus routes between the UK and Ireland. The OFT therefore considers it appropriate for the Competition Commission to undertake a more detailed investigation into this matter. Click here.

OFT passes truck cartel case to the European Commission

The OFT has decided to close its civil investigation into suspected cartel behaviour amongst commercial vehicle manufacturers. Following a detailed review of the available evidence and discussions with the European Commission, the OFT has concluded that the European Commission is particularly well placed to take the investigation forward as part of its wider investigation into the European truck industry. Click here.

Clive Maxwell appointed new OFT Chief Executive

Business Secretary Vince Cable has announced the appointment of Clive Maxwell as Chief Executive of the OFT. Mr Maxwell is currently an Executive Director and Board member of the OFT and will succeed the outgoing CEO, John Fingleton, who announced in February that he was stepping down after seven years in the role. Click here.

OFT refers PVC roofline products merger to Competition Commission

The OFT has referred the completed acquisition by Epwin Holdings Limited of Latium Building Products Holdings Limited to the Competition Commission for further investigation. The companies supply replacement windows, rainwater collection products, and PVC roofline products such as soffit boards, fascia and cladding. The OFT considers that the two companies were close competitors before the merger and that, post-merger, the parties will be the leading suppliers in PVC roofline products. Click here.

EU

Articles 101 and 102

  • The European Commission has opened formal proceedings to investigate whether the German railway incumbent Deutsche Bahn AG and several of its subsidiaries operate an anticompetitive pricing system for traction current in Germany, in breach of Article 102. Traction current is a type of electricity used by trains on the railway network. The Commission is investigating whether discounts applied by Deutsche Bahn lead to higher prices for its competitors. Click here.
  • The European Commission has made legally binding commitments offered by Siemens AG and Areva SA to reduce the product scope and duration of a non-compete obligation in the market for nuclear technologies. The Commission had concerns that the non-compete obligation might breach Article 101. After market testing the commitments offered by Siemens and Areva, the Commission is satisfied that they address its concerns and has closed its investigation. Click here.

Mergers

  • Deutsche Borse has appealed against the European Commission decision to block its merger with NYSE Euronext. Click here.

UK

Competition Commission

  • The Competition Commission has published for consultation its draft revised guidelines on market investigation references. Click here.
  • The Competition Commission has published for consultation a draft of the undertakings that it proposes to accept from Anglo American and Lafarge to address the adverse effects of their proposed construction materials joint venture. Click here.

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