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New Zealand Commerce Commission declines Fletcher acquisition application
The New Zealand Commerce Commission (NZCC) has declined to grant clearance for Fletcher Concrete and Infrastructure Limited to acquire certain business assets that comprise the Stevensons Building Product Division of W Stevenson and Sons Limited.
The NZCC was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in either the Auckland precast and readymix concrete markets or the markets for masonry products in Northland, Auckland and Christchurch.
However the NZCC needed to consider the effect on competition in all of the relevant markets. In the New Zealand market for cement, the NZCC was not satisfied that the acquisition would not be likely to substantially lessen competition and therefore the acquisition as a whole could not be cleared.
Antitrust ruling imminent on Microsoft in South Korea
Microsoft is facing an imminent and crucial ruling from South Korea's competition regulator, the Fair Trade Commission, on the allegation that Microsoft violated South Korea's fair trade rules.
In 2001, Daum Communications Corp, which operates one of South Korea's most popular internet portals, lodged a complaint with the Commission accusing Microsoft of illegally incorporating its instant messaging software, MSN Messenger, into the Windows operating system.
RealNetworks, producer of RealPlayer audio-visual software, joined the suit in 2004 complaining of Microsoft's linking of Media Player with Windows. On 11 October 2005, Microsoft agreed to pay RealNetworks Inc. US$761 million to settle antitrust suits brought against Microsoft by RealNetworks. As part of the settlement, RealNetworks is to withdraw from antitrust cases in Europe and Korea.
The Microsoft case continued in South Korea without RealNetworks. On 11 November 2005, Microsoft and Daum announced that they had reached a US$30 million settlement. Despite the settlement, the Commission announced that it would continue its investigation. This will be the first antitrust ruling which Microsoft has faced in Asia, Microsoft's emerging market.
Japan has increased penalties under its Antimonopoly Act
Japan has revised its Antimonopoly Act, introducing tougher penalties for violation of its provisions. The revised law will take effect from 4 January 2006.
The revisions increase the penalty surcharges to be applied to the sale of products where bid rigging or cartels are found. In addition, the revised law introduces a leniency program, exempting from punitive surcharges the first company to admit to illegal activity before the Japan Fair Trade Commission (JFTC). Surcharges will also be cut by 50% for the second company that comes forward in the same case and by 30% for the third.
Under the revised law, the JFTC will also be given the authority to conduct investigations and obtain court-issued warrants to conduct raids to seize goods and property.
EU industrial thread makers fined for operating price-fixing cartels
On 14 September 2005 the European Commission fined European industrial thread makers, including one of the world's largest manufacturers, Coats Ltd, €43.5 million for operating price-fixing cartels in violation of Article 81 of the EC Treaty. Article 81 targets behaviour which prevents, restricts or distorts competition within the common market.
The European Commission found a total of three cartels in the industrial thread market. In each of these cases, the European Commission found that the thread manufacturers took part in regular meetings and had contacts who agreed on price increases and targets, exchanged sensitive information on the prices given to individual customers and avoided undercutting prices with a view to allocating customers between cartel members.
European Commission fines Peugeot for obstructing new car exports from the Netherlands
The European Commission has imposed a fine of €49.5 million on car manufacturer Automobiles Peugeot SA and its wholly owned subsidiary Peugeot Nederland NV (together Peugeot) for obstructing exports of new cars from the Netherlands to consumers living in other Member States. In determining the level of the fine, the European Commission took into account the very serious nature and relatively long duration of the infringement.
The European Commission found that from January 1997 to September 2003, Peugeot implemented a strategy designed to prevent Dutch Peugeot dealers from selling cars to consumers in other Member States so as to restrict exports by the Dutch dealers. Cars in the Netherlands are generally substantially cheaper (before taxes) than in other Member States such as France and Germany.
Peugeot's strategy included refusing performance bonuses if Dutch dealers sold cars to non-Dutch citizens, and exerting direct pressure on those dealers who were identified as having developed a significant export activity, for example by threatening to reduce the number of cars supplied to them. By preventing these exports of new cars, the companies violated Article 81 of the EC Treaty, which targets behaviour which prevents, restricts or distorts competition within the common market.
US District Court allows iTunes antitrust claims to proceed
Apple Computer Inc. faces several federal and state antitrust claims arising from the operation of its iTunes® online music store and the sale of its iPod® digital music players. The claims include allegations that Apple possesses monopoly power and has coerced customers into purchasing both iPods® and iTunes® files.
Hurricane Katrina expedites antitrust procedures in the US
Hurricanes Katrina and Rita disrupted or destroyed many vital production and distribution facilities and impacted upon numerous other business sectors, including telecommunications, health care, housing, and retail. In recognition of the overwhelming national need to rebuild these industries, the Antitrust Division of the Department of Justice and the Federal Trade Commission have introduced a process to provide expedited antitrust guidance on the legality of proposed conduct to businesses who seek to engage in joint ventures or other collaborative efforts which assist affected communities to recover from the devastation.
Under the expedited process, joint efforts of limited duration by businesses to restore these sectors more quickly and effectively will receive antitrust guidance within five working days of submitting their request for review. This is in contrast to the normal 90 day review process required by the agencies.
The Department of Justice and Federal Trade Commission have stated that US antitrust laws do accommodate pro-competitive collaborations among competitors but that, in assessing proposed collaborative efforts, they will not tolerate any attempt by competing businesses to undertake blatant price fixing or market allocation agreements to the detriment of consumers affected by the hurricanes.