Employee Jailed for Obstructing Antitrust Investigation in Hong Kong
An employee from a commercial cleaning company was sentenced to two months in prison for obstructing an antitrust investigation by destroying and concealing documents during a police raid in Hong Kong. The employee tried to delete shortcuts on her company's computers that linked to a competitor and five documents related to a price-fixing investigation. The employee faced a potential fine of HKD 1 million and up to two years in prison.
This case marks the first demonstration of the Competition Ordinance's power to penalize individuals for obstruction, false statements, and failing to comply with police requests. The employee's company, Hong Kong Commercial Cleaning Company, previously paid HKD 10.96 million in fines to settle allegations of cartel conduct, and another company, Man Shun Hong Kong & Kln Cleaning Company, was also fined HKD 11.31 million for exchanging sensitive information with the employee's company.
UK's CMA Will Not Investigate Microsoft-OpenAI Partnership
The UK's Competition and Markets Authority (CMA) has decided against launching a formal investigation into Microsoft's partnership with ChatGPT developer OpenAI. The CMA concluded that while Microsoft, a major financial backer with a USD 13 billion investment, holds "material influence" over OpenAI, it does not exert de facto control. This determination means the partnership does not meet the threshold for an official inquiry under the UK's merger control regime. The decision comes after the CMA initiated a review following the brief ousting and reinstatement of OpenAI CEO Sam Altman. The CMA noted a recent decrease in OpenAI's reliance on Microsoft for computing power as a factor influencing its decision but cautioned that this should not be interpreted as a clean bill of health regarding potential competition concerns.
FTC Sues to Block GTCR's Acquisition of Medical Device Coating Maker Surmodics
US Federal Trade Commission (FTC) has filed a lawsuit to block GTCR's proposed acquisition of Surmodics, arguing that the deal would create an anticompetitive combination of the two largest manufacturers of critical medical device coatings. The FTC alleges that the acquisition would give the combined company control over more than 50% of the outsourced hydrophilic coatings market, which are essential for life saving medical devices like catheters and guidewires.
The FTC contends that eliminating the direct competition between Surmodics, the largest provider, and Biocoat, the second-largest 3 provider (owned by GTCR), would lead to higher prices, lower quality, and reduced innovation, ultimately harming medical device manufacturers and patients. The complaint highlights the significant increase in market concentration and the unlikelihood of new competitors emerging.
First Ever Fine in the UK for a Labour Market Infringement
UK's CMA has fined four major sports broadcast and production companies – BT, IMG, ITV, and BBC – a total of GBP 4.2 million for sharing sensitive information about fees for freelance workers. An investigation revealed 15 instances where the companies unlawfully exchanged details on day rates and pay rises for camera operators and sound technicians, often with the explicit aim of coordinating pay and avoiding bidding wars. Sky avoided a fine by being the first to report its involvement. The fines were reduced for all four companies due to their admission of guilt and settlement, with BT, IMG, and ITV receiving further reductions for cooperating with the CMA's investigation under its leniency programme.
France: Apple Fined EUR 150 million for Abuse of Dominance with Privacy Feature Implementation
France's Autorité de la Concurrence has fined Apple EUR 150 million, determining that the company abused its dominant position in distributing mobile applications on iOS and iPadOS through the implementation of its App Tracking Transparency (ATT) feature. While not condemning the data collection tool itself, the authority found that the conditions surrounding its rollout were "neither necessary for nor proportionate with Apple's stated objective of protecting personal data."
The Autorité de la concurrence argued that ATT, designed to give users more control over data by requiring consent for tracking on third party apps, was implemented in a way that "artificially complicate[d] the use of third-party applications and distort[ed] the neutrality of the framework to the detriment of small publishers financed by advertising." The regulator highlighted the "multiple consent pop-ups" and the requirement for double consent for third-party tracking while Apple's own apps did not require similar consent. This asymmetric system reinforced Apple's dominance by hindering competitors' access to data.
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