In the News

OFT issues statement of objections against GSK and other pharmaceutical companies

The OFT has issued a Statement of Objections to certain pharmaceutical companies alleging they acted to delay effective competition in the UK supply of paroxetine, an antidepressant medicine. The OFT alleges that GlaxoSmithKline (GSK) concluded agreements which infringed Article 101 and the Chapter I prohibition with each of Alpharma Limited, Generics (UK) Limited and Norton Healthcare Limited in relation to the supply of paroxetine in the UK. The OFT also alleges that GSK's conduct amounted to an abuse of a dominant position in the same market contrary to Article 102 and the Chapter II prohibition. According to the OFT, the generic companies were each attempting to supply a generic paroxetine product in competition to GSK's branded paroxetine product, Seroxat. However, in each case, GSK challenged the generic companies with allegations that their products would infringe GSK's patents. To resolve these disputes, each of the generic companies concluded one or more agreements with GSK. The OFT's provisional view is that these agreements included substantial payments from GSK to the generic companies in return for their commitment to delay their plans to supply paroxetine. Click here.

European Commission issues statement of objections to suspected participants in smart card chips cartel

The European Commission has informed a number of suppliers of smart card chips of its preliminary view that they may have participated in a cartel, in breach of Article 101. Smart card chips are used in mobile phone SIM cards, bank cards, passports, identity cards, pay TVs and numerous other applications. The Commission is concerned that certain chips suppliers may have agreed or coordinated their behaviour in the European Economic Area in order to keep prices high. The Commission initially agreed to explore the possibility of a settlement with the companies involved but has now discontinued the talks due to lack of progress. The normal investigation procedure will now run its course. Click here.

European Commission opens second Phase II investigation into proposed acquisition of Olympic Air by Aegean Airlines

The European Commission has opened an in-depth investigation under the EU Merger Regulation into the proposed acquisition of Olympic Air by Aegean Airlines. The companies are the two main Greek airlines offering passenger air transport services on Greek domestic and international routes. The Commission has concerns that the transaction may lead to price increases and poorer service on several domestic Greek routes out of Athens, where the merged entity would have a monopoly or an otherwise strong market position. In January 2011, the Commission prohibited the first proposed combination of Olympic Air and Aegean Airlines. As part of its current investigation, the Commission is examining the changes in the market circumstances that have occurred since the 2011 decision. Click here.

EU

Articles 101 and 102

  • The Advocate General's opinion on Schindler's appeal against the General Court judgment in the lifts and escalators cartel case has been published. The Advocate General considers that the appeal should be dismissed. Click here.
  • The European Commission is inviting comments on commitments offered by Penguin to close the Commission's investigation as to whether Penguin may have infringed Article 101 in relation to the sale of e-books. The commitments are substantially the same as those proposed by Simon & Schuster, Harper Collins, Hachette, Holtzbrinck and made legally binding by the Commission in December 2012. Click here.

UK

Competition Commission

  • The Competition Commission has formally cleared the completed acquisition by Booker Group PLC of Makro Holding Limited. This confirms the Commission's provisional decision, which was published last month. In its final report, the CC has concluded that the merged company would continue to face sufficient competition from other wholesalers - both cash-and-carry and delivered - in all areas affected by the merger. Click here.

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