IN THE NEWS

New UK competition authority comes into existence

The Competition and Markets Authority (CMA) came into existence on 1 October and is consulting on its vision, values and strategy. It is proposing five strategic goals which cover delivering effective enforcement, extending competition frontiers, refocusing consumer protection, developing integrated performance and achieving professional excellence. Click here.

OFT refers television playout services merger to the Competition Commission

The OFT has referred the anticipated acquisition by Ericsson of Red Bee Media Limited. Both Ericsson (through its subsidiary Technicolor Broadcast Services) and Red Bee Media provide outsourced linear playout and ancillary services to some of the largest broadcasters in the UK. The CC will decide whether the acquisition may be expected to result in a substantial lessening of competition. Click here.

Advocate General Melchior Wathelet delivers opinion on Telefonica's margin squeeze appeal

AG Wathelet has delivered his opinion on the appeal by Telefónica against the General Court's judgment upholding the European Commission's 2007 decision that Telefónica had abused its dominant position by engaging in an unlawful margin squeeze, for which a fine of over €150 million was imposed. AG Wathelet did not accept arguments pertaining to breach of Telefónica's rights of defence and did not consider that the substantive grounds of appeal were admissible. However, the AG considered that the General Court had not conducted an in-depth examination of the calculation of the fine imposed, and proposed that this aspect of the case be referred back to the General Court. Click here.

EU Article 101

  • The European Commission has published in the Official Journal a summary of its July 2013 decision, using the settlement procedure, to fine certain car parts suppliers for operating bid-rigging cartels in relation to the supply of wire harnesses to car manufacturers. Click here.
  • The ECJ has dismissed two appeals by Alliance One International Inc against the General Court's judgments on appeals against the European Commission's Spanish raw tobacco cartel decision. The ECJ held that the General Court had correctly upheld the Commission's decision finding AOI jointly and severally liable for Agroexpansión's involvement in the cartel and had not erred in respect of its appraisal of the fine imposed. Click here.
  • The ECJ has dismissed appeals by EI DuPont and Dow against the General Court judgments which dismissed their appeals against the European Commission's decision on the chloroprene rubber cartel. The ECJ held that the General Court was correct to uphold the Commission's finding that EI DuPont and Dow were each liable for the conduct of a joint venture company over which they exercised joint control. Click here.

Mergers

  • The European Commission has granted conditional approval to the acquisition of Morpol by Marine Harvest, having found that the merger would combine two of the largest farmers and primary processors of Scottish salmon. Marine Harvest has agreed to divest the majority of Morpol's salmon farming activities in Scotland. Click here.
  • The European Commission has published the non-confidential full text of its August 2013 decision to grant conditional approval to the merger between US Airways and AMR Corporation. Click here.

UK

OFT

  • The OFT has issued an update paper establishing the proposed scope for its market study on banking for small and medium-sized businesses. Click here.
  • The OFT has accepted initial hold separate undertakings from Cineworld Group Plc in relation to the completed acquisition by Cineworld Group Plc of Glasgow Science Centre IMAX. Click here.

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