Jan - May 2020, CCLMS
Jan - May 2020, CCLMS
Jan - May 2020, CCLMS
NATIONAL NEWS
Zomato, an online food delivery platform has purchased, its rival, Uber Eats India through a deal
between US$160 million and US$200 million for a 9.99% business stake. Uber Eats India has
resulted into a loss driven project for Uber.
Another rival, Swiggy has more market share than Zomato in the country and thus, with this deal
Zomato will acquire the users of Uber Eats India making it jump ahead of Swiggy in the market.
“The competition in this space is going to continue to be intense, and the food delivery category
is still very small compared to the overall food service market in India,” Goyal wrote on the
company’s blog. “Through this deal, Uber Eats India users now become Zomato users. I want to
assure Uber Eats India users that their user experience won’t be compromised in any way — if at
all, the scale gives us higher density to make our deliveries faster.”
Allegations Over Maruti Suzuki Regarding Forceful Sale Of Insurance Policy, CCI Probes
The Carmaker
The antitrust regulator of the country is investigating into the allegations put upon the Carmaker
giant, where it is alleged that the company forces buyers to purchase insurance policies provided
by the company itself. The complaint stated that such forceful and deceitful act leads to the
person paying more amount than what is to be paid in the market for same service.
Based on the same an assessment is carried on by the CCI as to the presence of a “tie-in”
agreement between the car manufacturer and the insurance companies to that effect.
The study was carried out to analyse as to how can efficiencies for the consumers be achived by
ensuring a fair competition on merits between the market players. Further, the aim was also to
find ways to reduce information asymmetry and a healthy relation between all the stake holders.
There lay certain imbalances and gaps in the e-commerce market which are brought out by the
study and the same needs to be reduced and ended.
INTERNATIONAL NEWS
Four companies sued Facebook on the ground of anticompetitive practices by cancelling the
access of developers on the social media platform to gain advantage over future competitors.
“Facebook faced an existential threat from mobile apps, and while it could have responded by
competing on the merits, it instead chose to use its might to intentionally eliminate its
competition,” said Yavar Bathaee, a partner at law firm Pierce Bainbridge and co-lead counsel in
the case.
The filing is an escalation of Facebook’s battles with small app developers that had built
companies based on access to its user data. Facebook cut off access for certain apps as far back
as 2012, while still allowing access for others.
Even After A Running Anti-Trust Probe Against The Amazon, The Company Extends A $
1bn. Investment In The Country
Amid protests and a anti-trust probe against the Amazon, its CEO Jeff Bezos arrives India to
attend a two-day summit in the country. The Summit is huge and will be seeing a participation of
around 3000 Small and Medium Sized Businesses along with many sharp and fertile brains of
the country.
The investment will bring thousands of businesses in the online arena which were earlier
deprived or were unable to come to a larger international platform. This is in wake of the growth
of the business for the company which was around 120 percent over the last year.
Greece Competition Enforcement Agency: Proposes For A New Regulator To Ensure Fair
Competition For News And Media Publishers
The Greece Watchdog on anti-competitive practises has suggested the Government for a new
regulator for ensuring fair and transparent competition among publishers and media houses.
The same comes in the light of the pluralism that subsists in the news delivery system which is in
many ways derogatory to country at large. The opinion also tries to reflect on the real condition
of media market and structuring. The need is also felt due to the economic crisis that recently hit
the country and also due to transformation of press into digital platforms.
Uber, the taxi service provider, has decided to end its services and operations in Colombia due to
the Columbian order of ceasing the operations of the Taxi giant. The same comes as an effect of
the judge deciding against the Company and siding the competition watchdog of the company.
The drivers protested against Uber and other such service providers, who as per the complaints
were taking unfair advantage of lack of regulations, by providing less and archaic fees. However,
the other operations such as Uber Eats continue to function in the country
FEBRUARY 2020
NATIONAL NEWS
This is the second time in less than six months that the fair trade watchdog has called for an
investigation against the two entities after finding prima-facie evhidence of a violation of
competition norms. MMT, an online travel agency, has a pact with Oyo, which provides
franchising services to budget hotels.
The complainant, Rubtub Solutions, operates Treebo Hotels, a competitor to Oyo. Exclusion of
Treebo and its partner hotels from listing on MMT platform pursuant to the commercial
arrangement between the latter and Oyo, price parity restrictions on the platform and exclusivity
condition on Treebo are the three main issues raised by the complainant, as per the watchdog.
INTERNATIONAL NEWS
The General court for the first time has reversed the decision of the European Commission
finding the abuse of dominance. The judgment highlights that the definition of the market is sine
qua non of the cases of Article 102.
The Court was of the view that some patent settlement agreements between the patent owner and
the generic manufacturers can be identified as restrictive of competition by object. Nevertheless,
the Court has also concluded that the one of the patent settlement agreements was found legal by
object or by effect.
The EU Court For The First Time Decides On Pay-For-Delay Settlements In Paroxetine
While there are pending appeals on the pay-for-delay settlements in the case of Lundbeck and
Servier, the EU Court for the very first times rules the same in the Paroxetine case.
Pay-for-delay settlements are the such agreements in which the value (e.g. a large sum of money)
is transferred from the patent owner to the manufacturer of generics in the exchange of the delay
in the market entry. These settlements give rise to antitrust concerns which have been thoroughly
investigated by the competition authorities
Sundar Pichai, CEO of Google on February 26 announced to invest US$10 billion in data
services and offices across the United States. This was decided while facing high scrutiny by the
regulators.
CNBC states that the leaders of House Judiciary Committee recently in September have asked
Google to hand over the documents of the company that are raising antitrust concerns. It has
been announced by the Federal Trade Commission that it is examining the earlier acquisition
made by the parent company of Google i.e., Alphabet.
South Africa Brings Into Effect The Price Discrimination And Buyer Power Provisions
The South African President Ramaphosa and Minister Patel exactly after a year of signing into
law the provision of price discrimination and buyer power have brought into effect the
amendment of section 9 of the South African Competition Act (price discrimination) together
with sec 8(4) (buyer power).
Both the provisions ensure the “effective participation” of the small and medium owned firms or
businesses by the historically disadvantaged persons.
MARCH 2020
NATIONAL NEWS
To enable better control mechanism over e-commerce market and compliance, India intends to
set up an e-commerce regulator which will enable the platforms to provide information whenever
sought by authorities especially amidst the Covid-19 pandemic which has created a surge in
online shopping.
This regulator can seek any information from the platforms for better implementation an
execution of the policies and will ensure fair trade practices. It can impose penalties for non-
compliance as well. Also, this regulator will also be applicable to social-media websites.
The National Restaurant Association (NRAI) sent notices to Swiggy, Zomato, Uber Eats India
and Foodpanda over alleged anticompetitive practices related to deep discounting, abuse of
dominant position, and lack of transparency causing problems to mid-sized and large restaurant
chains.
There was already trouble brewing for the restaurants owing to the dine-in programs of these
food delivery platforms. However, the online delivery market is much bigger and fair trade
practices have to brought their as soon as possible.
Anurag Katriar, NRAI’s Mumbai head said “There is a very strong demand to immediately
extend the ‘Logout’ movement to the online delivery vertical as well. However, as a responsible
industry body, we want to actively engage with these delivery aggregators to find a solution,”
INTERNATIONAL NEWS
The Antitrust inquiry ordered by Federal Trade Commission (FTC) and Department of Justice
(DOJ) of large tech companies, Apple, Amazon, Facebook, Microsoft, Alphabet would be
delayed due to workplace change owing to Covid-19 pandemic.
This change will result in slow progress. The FTC Director said “Almost all internal and external
meetings will be handled by telephone or videoconference, and parties should assume that
meetings will be held remotely, rather than in person, until further notice,”. He further said,
“Despite these procedural changes, the FTC will be conducting the business of the Commission
without interruption.”
The European Commission has decided to adopt a temporary framework in order to facilitate its
member states with flexible state rules to back the economy amidst the pandemic outbreak.
The Executive Vice-President Margrethe Vestager and Commissioner Thierry Breton came
together for a videoconference to discuss the consequences of the pandemic on the European
market and internal market of the member states. The discussions were related to the emphasis of
a single market and proper coordination among the member states.
The complaint is for continuing a practice of most favored nation pricing terms even after
Amazon had agreed to abandon the policy before the Federal Trade Commission. This practice
resulted product to sell on Amazon at equal or lower prices as compared to other e-retailing
platforms. As a result of Amazon’s dominance, the prices have elevated.
Toshiba, Samsung, Panasonic, Philips, Thomson and Hitachi’s long running suit regarding price
fixing got an approval for US$513 million. It was filed in 2007 on behalf of both upstream and
downstream purchasers.
Earlier in 2015, the companies had reached a US$542 million settlement, but were not given the
green signal due to objections raised before the US Court of Appeals.
APRIL 2020
NATIONAL NEWS
Covid-19: Facebook files a suit against an Indian Company for deceptive advertisements
Facebook sued LeadCloak Software, created by Basant Gajjar as it was displaying false
information advertisements and links for cryptocurrency investment scandals, diet medicines
with respect to Covid-19 pandemic.
The Suit filed states that the software is able to escape the review system in the social media
platforms. It also lures the users to click on the links which have no relation to the
advertisements. This software has also used other companies like Google. Oath, Shopify to carry
out its fraudulent activities.
Due to the pandemic, there has been various harm intending players who take benefit of user’s
despair state. Earlier, in March, Facebook prohibited false advertisements related to masks as
they were duplicate and above price than required.
Following the announcement of Facebook’s $5.7 billion investment in Jio Platforms, the largest
minority investment by a technology company worldwide, Reliance Jio confirmed that it would
approach the Competition Commission of India (CCI) for its approval. It is reassuring to know
that the CCI will scrutinise this mega deal between two data giants before it can be
consummated, unlike Facebook’s earlier acquisition of WhatsApp which escaped the CCI’s
scrutiny. However, the key question is whether the CCI is equipped to deal with big data issues
and if it would, in fact, go beyond its comfort zone (traditional competition rules) to analyse the
potential adverse impact of such a mega deal.
The Competition Commission of India has reached an agreement with MTN regarding the
reduction of its data prices.The agreement includes the reduction of the pricing of 30-day prepaid
bundles of up to 1GB of data, which will now cost R99 (US$1.31).According to the agreement,
these new prices must be implemented as of May 1, although MTN already implemented these
changes earlier this month.The agreement follows the publication of the final report of the Data
Services Market Inquiry in December last year.
INTERNATIONAL NEWS
A California lawsuit claims the retail giant Amazon has inflated prices for essential goods by
more than 600%, violating California consumer-protection laws. California consumers
hit Amazon.com with a class-action lawsuit accusing the retail giant of violating state consumer-
protection laws by price-gouging during the COVID-19 public health crisis, according to
attorneys at Hagens Berman.
The European Commission gave its green signal to Sweden and Belgium’s initiative to support
the airlines industry due to the problems and economic sufferings resulting from Covid -19
pandemic.
Sweden’s €455 million (US$497 million) loan was given antitrust approval to aid those airlines
which possess its commercial aviation license. The Antitrust chief of EU said that the pandemic
has resulted impacted the entire world which was not expected. The loan “aims at providing
airlines operating in Sweden with liquidity in these difficult times.” Belgian’s €50 billion loan
has been approved.
The European Commission has given a green signal to Lufthansa Service Group’s (LSG)
European business by Gategroup under the EU Merger Regulation subject to compliance
conditions laid down by Gategroup.
This would give Gategroup full control over European LSG. The Executive Vice President said
that “The markets for in-flight catering services need to function well in order to allow airlines
that operate in Europe, to provide air transport services to passengers. In particular in these
difficult days due to the Coronavirus outbreak, we need to ensure that competition remains once
the market picks up. With our approval today of Gategroup’s purchase of the European business
of LSG subject to remedies we make sure that airlines will continue enjoying quality and
innovative in-flight catering services at fair prices to the benefit of passengers.”
Their collaboration would include international sourcing, logistics and airlift operations. This
collaboration is a result of an emergency response plan developed by Federal Emergency
Management Agency (FEMA) and U.S. Health and Human Services (HHS) Department to
ensure access and availability of protection requisites for the pandemic.
Brussels has stepped up pressure on Google to respect EU privacy laws as the US search group
joins forces with Apple to help in the development of Covid-19 contact tracing apps.
The US tech companies are working to develop a system that will alert individuals of possible
exposure to Coronavirus in the hope that this will allow cities to emerge from severe lockdowns.
However, there are growing concerns among civil society groups and EU regulators that the
introduction of such technologies — even on a voluntary basis, could lead to abuse and breaches
of individuals’ privacy.
The Cambodian government will soon finalize a draft law on antitrust and competition and
submit it to the National Assembly for approval, a Ministry of Commerce senior official told.
Commerce ministry spokesman SeangThay told that an inter-ministerial committee had
previously discussed the law at the Office of the Council of Ministers
The Competition and Markets Authority (CMA) has warned British private schools to avoid
colluding on plans for fee reductions and discounts as they struggle to adjust to the impact of
Coronavirus.
MAY 2020
NATIONAL NEWS
Fair trade regulator the Competition Commission of India (CCI) dismissed a complaint alleging
abuse of dominant position by SBI and collusion with Patanjali Ayurveda and International
Traders in a bidding process.
The order came on the complaint filed by RH Agro Pvt Ltd, a large scale basmati rice
manufacturer. The matter pertains to auctioning of RH Agro’s property by State Bank of India
(SBI) after its account was classified as non-performing asset (NPA)
Facebook’s WhatsApp could be abusing its position of power in India by stealthily offering
payment options. There was a complaint filed in mid-March that the messenger app was being
used to offer Indian consumers a new digital payment service that circumvents Indian
authoritative channels.
WhatsApp’s payment service is unlike others in that it is based on the Unified Payments
Interface (UPI) standard, so users don’t have to enter a net banking password or ID to send or
receive money.
The antitrust complaint has been leveled at both Facebook and WhatsApp, but India’s watchdog,
Competition Commission of India (CCI), stated only WhatsApp needs to be investigated. The
complainant has not been investigated.
Zomato, an India-based food delivery startup, is reportedly being investigated by regulators for
its purchase of UberEats India, which could be seen as violating the nation’s anti-competitive
rules.
In March, Uber sold its food delivery operation in India to Zomato for US$206 million,
according to a regulatory filing by the ridesharing firm. Wherein, Zomato’s biggest competitor is
Swiggy, known as India’s No. 1 food delivery business, per industry estimates.
The Competition Commission of India (CCI) is looking at two aspects of the deal to see if the
acquisition will lead to less competition and whether the two companies should have notified
regulators about the transaction.
India’s antitrust body is looking into allegations that Alphabet Inc’s Google is abusing its market
position to unfairly promote its mobile payments app in the country.
The complaint alleges the U.S. tech giant more prominently showcases its Google Pay app inside
its Android app store in India, giving it an unfair advantage over apps of competitors which hurts
consumers.
The CCI can direct its investigations unit to conduct a wider probe into the allegations, or
dismiss the case if it finds no merit in it. “It is at a consideration stage”.
INTERNATIONAL NEWS
An eBay shopper hit the online retail platform with a putative price-gouging class action in
California federal court Monday, May 4, accusing it of encouraging sellers to jack up the prices
of masks, hand sanitizers, and other products that are in high demand during the coronavirus
pandemic.Jeanette Mercado, an Uber and Lyft driver, says that she was forced to pay a 300%
markup for the N95 masks she bought on eBay to protect herself from the virus.
Online marketplaces such as Amazon and eBay should be liable for any faulty and unsafe goods
they sell, claimed the EU’s biggest consumer group, as Brussels prepares to overhaul its rules for
internet platforms.The EU consumers’ organization (Beuc), which represents consumer bodies
across 32 countries, accused online platforms of selling a wide range of goods that do not
comply with EU safety standards.
In a test in February of 250 electrical goods, toys, cosmetics, and other products from Amazon,
AliExpress, eBay, and Wish, two-thirds failed European safety laws.
France’s antitrust watchdog announced plans Wednesday to scrutinize the fintech industry and
said it will be looking into what impact tech giants including Apple and Google are having on
digital payments.
The consultation covers three primary areas: the evolution of the payments market in recent
years; the “delimitation of the markets concerned and analysis of the position and competitive
advantages of the players involved”; and the “commercial practices likely to be implemented by
the different actors”.
The Autorité imposed a record €1.1bn (US$1.2bn) fine – its biggest fine ever imposed – on
Apple in March for engaging in what it sees as anti-competitive practices with two of its
wholesalers in France. Apple said it would appeal.
U.S. Congressman David Cicilline proposes a ban on mergers during the pandemic
The House’s antitrust chairman, Rep. David Cicilline has proposed for a moratorium on mergers
until the pandemic comes to an end. He argues that well-heeled companies and investors could
wipe out competition in the market by purchasing into the smaller players. His proposal would
allow M&A transactions only if a company has or is about to declared bankruptcy. Any other
deals will be on hold until the pandemic is lifted.
Renault and Nissan have shelved plans to push towards the full merger former leader Carlos
Ghosn craved and will instead fix their troubled alliance to try to recover from the coronavirus
pandemic. Nissan has long resisted Renault’s proposals for a full-blown merger as executives felt
the French carmaker was not paying its fair share for the engineering work it did in Japan,
sowing discord that some feared could wreck the partnership. Now, with carmakers around the
world reeling from the pandemic, the partners are planning to overhaul an alliance that largely
failed to convert its global scale into a competitive advantage beyond the joint procurement of
parts.
Italy’s Intesa Sanpaolo may have to delay launching a takeover bid for rival UBI until September
as antitrust approval for the biggest European banking merger in a decade is taking longer than
expected. Intesa unveiled on February 17 an all-paper exchange offer for UBI to create the Euro
zone’s seventh-largest banking group, and had expected to launch the bid at the end of June,
soon after receiving regulatory clearance. Italy’s antitrust regulator, however, has only recently
opened an inquiry into the transaction, and a ruling is only expected towards the end of July.
The antitrust body has stated the merger would reshape Italy’s banking landscape, ending the
current “broad symmetry” between heavyweights Intesa and UniCredit and preventing UBI from
leading moves to create a third large player.
South Korea’s telecommunications market dominated by three major firms lacks competition
and needs to improve its structure to provide better services to consumers, a state-run think tank
said Tuesday. The Korea Information Society Development Institute (KISDI) said although
competition in the local telecom market, viewed as an oligopoly, has grown over the years, it still
appears to be “insufficient.”
“The market share and concentration ratio of the country’s top telecom operator dropped and
improved index related to the market structure, but this is mainly due to government policy of
supporting ‘altteul’ phone operators,” the KISDI said in its report for the 2019 telecom market,
using the Korean word for thrifty.