Following dawn raids in 2003, the European Council has sent a statement of objections, in which it outlines its allegations, to a number of chemicals companies, including Akzo Nobel, suspected of participating in a cartel. The companies are suspected of operating a cartel for PVC additives, known as heat stabilisers, which are used in items such as fake leather and credit cards to make them more durable.
Japan's Fair Trade Commission has imposed an AUD $135 million fine on 12 international air freight forwarding companies, including Nippon Express and Kintetsu World Express, for allegedly colluding to set a tariff for security charges and fuel surcharges on clients from 2002 to 2007.
The Italian competition authority has fined 26 pasta manufacturers and one industry body over AUD$25 million for operating a price fixing cartel. The world’s largest and best-known pasta maker, Barilla, received the largest fine for its role in the cartel which ran from 2006 to 2008. Other companies that agreed to the coordinated price increases include Amato, Colussi, De Cecco, Divella and Garofalo.
The United States Supreme Court will be asked to consider whether pharmaceutical giants can legally pay rivals to slow or prevent the introduction of generic substitutes, a practice known as ‘reverse settlement payments’. The petition stems from a 2008 settlement whereby Bayer offered to pay Barr Pharmaceuticals AUD$560 million and to supply it with its generic drug Cipro for resale. As a result of various mixed rulings by US court and appeal bodies, US consumers have been forced to wait even longer for the introduction of generic affordable drugs.
In a separate matter, US pharmaceutical company Merck has agreed to buy rival Schering-Plough for AUD$63 billion, creating one of the largest global pharmaceutical companies. The deal follows Pfizer’s recent decision to buy Wyeth for AUD$105 billion, and an announcement by Roche Holding of its intentions to buy Genetech.
The Ministry of Commerce (Mofcom) has blocked Coca Cola’s proposed AUD$3.6 billion acquisition of China’s dominant juice company, Huiyuan. The ruling, the first under China’s new anti-monopoly law, has been eagerly awaited by companies and competition regulators worldwide because it sets a precedent for future foreign merger and acquisition attempts within China. In making its decision, Mofcom stated that the acquisition would have given Coca Cola too great a market share. US
The US Senate Judiciary Committee has approved a Bill to repeal the obsolete antitrust exemptions currently protecting freight railroads from competition. The Bill was introduced following concerns that freight railroads were abusing their dominant market power and raising rates for those who rely on them to transport vital products such as coal and agricultural items.
Canada announces major changes to competition laws
The most sweeping changes to the Canada's competition laws in more than 20 years have been passed by the Canadian Senate and received royal assent. Amendments include replacing the existing conspiracy provisions with a per se criminal offence for cartel conduct; increased penalties, including introducing 14 years gaol sanction for cartels; amending the current merger notification process to mirror US processes under the Hart Scott Rodino Act; and providing the Competition Tribunal with the power to impose significant fines for breaching abuse of dominance provisions.
Paula Rebstock has resigned after more than five years as Chair of the New Zealand Commerce Commission, ending a total of 11 years in the agency. The Commerce Minister, Simon Power, has announced that Dr Mark Berry will take over the role of chairman from 1 April 2009. It has also been reported that Berry’s appointment is only for a period of '18 months until a permanent replacement is found'.
In addition, the Deputy Chair of the NZCC, Donal Curtin, has stepped down from his position following disclosure issues, but will remain at the NZCC as a commissioner.
France’s new competition authority, the Autorite de la Concurrence, has held its first meeting. The new authority will centralise most of the powers and resources previously shared between the Ministry of Economy and the Council de la Concurrence, and will be responsible for merger control in France. The authority will have enhanced powers in the retail sector and be able to issue public opinions on competition matters.
Leibowitz appointed as US Federal Trade Commission chairman
Jon Leibowitz has been appointed as the new chair of the US Federal Trade Commission. Leibowitz has been a commissioner at the FTC since 2004 and is currently the FTC’s only Democratic commissioner. His appointment is not expected to change the FTC’s current enforcement-minded approach to regulation.
Dhanendra Kumara has been appointed as the first full-time chairman of the Competition Commission of India, five years after the agency was established in 2003. Kumar is a former executive director of the World Bank. The CCI will replace the Monopolies and Restrictive Trade Practices Commission and is expected to be fully operational by 1 April 2009.
The newly established British consumer group, Consumer Focus, has published a report evaluating the performance of six regulators, including Ofcom, Ofwat, Ofgem and Postcomm, against a series of consumer-focused indicators. The report criticises, in particular, the regulators' over-reliance on market mechanisms and self-regulation and their reluctance to use direct intervention as a first approach.
