Competition Law BulletinCompetition Law Bulletin “PRC Law Firm of the Year” for 2014 by Chambers...

Competition Law Bulletin

“PRC Law Firm of the Year” for 2014 by Chambers Asia Pacific

December 2014 Issue 7

Prepared by

Zhong Lun Antitrust Practice Group

Advisory Board

WU Peng, JIANG Xiansheng, XUE Yi, XU Yunhe, YU Xingang

CEN Zhaoqi, ZHANG Baisha, XIONG Rong

Editorial Staff

CAO Meijuan, ZHENG Haiming, QIN Ying, CHEN Zhao

YIN Yue, HOU Huiying, LAO Wenjie

Contact us

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Beijing 100022, P.R. China

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mailto:[email protected]

http://www.zhonglun.com/

Enforcement

China

MOFCOM unconditionally clears

75 concentrations of undertakings in

the fourth quarter of 2014

MOFCOM imposes penalties on

Western Digital for infringing

Anti-monopoly Law and 2012

conditional clearance of the

acquisition of Hitachi’s hard disc

drive unit by Western Digital

MOFCOM imposes penalty on

Unigroup Corp. Ltd. for failing to

notify the acquisition of RDA

SAIC publishes local branch’s

penalties on four quarries for

horizontal monopoly agreement in

Wuxi County, Chongqing


penalty on Pizhou Branch of Jiangsu

Province Xuzhou Municipal

Tobacco Company for abuse of

dominance


penalty on Chongqing Gas Group

Corp. Ltd. for abuse of dominance


penalties on Shangyu Commodity

Concrete Industry Association and

some of its members for monopoly

agreement

JSAIC held the 7th Suzhehu

Competition Enforcement

Cooperation Seminar

Jiangsu Price Bureau applies for

compulsory execution of fine

decisions on certain parties in the

Nanjing Concrete Industry

Association and 37 firms Price

Monopoly Cases

Supreme People’s Court publishes

the final judgment on Qihoo’s

appeal against Tencent for suspected

monopoly conducts

Chinese anti-monopoly enforcement

authority and European Commission

DG-Competition jointly held antitrust seminar of EU-China

Competition Policy Week

United States

Toyoda Gosei Co. Ltd. agrees to

plead guilty for fixing prices and

rigging bids on automobile parts

installed in U.S. cars

DOJ reaches settlement with 4

companies for their illegal

premerger coordination

DOJ requires divestiture in

Nexstar’s acquisition of

Communications Corporation of

America

DOJ files antitrust lawsuit to stop

National Cinemerdia from buying

Screenvision

FTC reaches settlement with Blue

Rhino and AmeriGas for settling

FTC’s charges of restraining

competition

FTC conditionally clears Surgery

Center Holding’s acquisition of

competitor Symbion

FTC conditionally clears

pharmaceutical joint venture

between GlaxoSmithKline and

Novartis

FTC conditionally clears

Medtronic’s Proposed Acquisition of

Covidien

DOJ and FTC sign cooperation

agreement with Colombian Antitrust

Agency

European Union

EC fines smart card chips producers

€ 138 million for cartel

EC confirms unannounced

inspections in biofuel sector

EC fines Slovak Telekom and its

parent, Deutsche Telekom, for

abusive conduct in Slovak

broadband market

EC sends statement of objections to

Honeywell and DuPont regarding

cooperation on new refrigerant used

in car air conditioning systems

EC settles RBS-JPMorgan cartel in derivatives based on Swiss franc

LIBOR

EC approves acquisition of

WhatsApp by Facebook

EC conditionally clears merger

between Hapag Lloyd and CSAV in

container liner shipping sector

EC conditionally clears merger

between banana companies Chiquita

and Fyffes

EC conditionally clears aerospace

and defence joint venture between

Airbus and Safran

EC conditionally clears acquisition

of Covidien by Medtronic

EC welcomes General Court

judgment confirming its inspection

powers in the area of electronic

searches

Australia

ACCC conditionally clears

minimum retail prices on Festool

power tools

Court imposes penalties of $8.3

million for Sydney forklift gas cartel

Court dismisses air cargo cartel

proceedings against Air New

Zealand and Garuda Indonesia

Korea

KFTC imposes penalty on

Dr.Chung’s Food Corporation for

forcing agents to order goods

Japan

JFTC starts secondary review

concerning the proposed acquisition

of shares of Chuetsu Pulp & Paper

Co.Ltd. by Oji Holdings

Corporation

Brazil

CADE conditionally clears

acquisition of Innova by Videolar

CADE prohibits Braskem’s

acquisition of Solvay

Russia

Arbitration Appeal Court confirms

legitimacy of the decision of the FAS regarding “Auchan” Ltd.

FAS imposes penalty on

Gorvodokanal for abuse of market

dominance

India

CCI issues order against Coal India

Limited and its subsidiaries for

abusing dominant position

South Africa

Competition Commission probes

collusive conduct in automotive

industry

Legislation

China

MOFCOM publishes the Provision

on imposing restrictive conditions

on concentration of undertakings

(trial implementation)

European Union

EC welcomes Council adoption of

directive on antitrust damages

actions

Australia

ACCC publishes the updated

immunity policy to uncover cartel

conduct

Zhong Lun in the News

Zhong Lun Partner Zhang Baisha

invited to attend Korea Competition

Seminar

Zhong Lun Partner Scott Yu rewards

ALB 2014 Client Choice Top 20

Zhong Lun held the seminar on the

latest development and hot-spot

issues of Anti-monopoly Law


invited to speak at the 9th China

Antitrust Law Seminar


Invited to Comment at the

International Seminar on

Competition Compliance and

Administrative Monopolies

1

Enforcement

China

MOFCOM unconditionally clears 75 concentrations of undertakings in the fourth

quarter of 2014

On January 7, 2015, MOFCOM issued a case review list setting out the 75

concentrations of undertakings unconditionally cleared in the fourth quarter of

2014. >>Read More Back

---------------------------------

MOFCOM imposes penalties on Western Digital for violating Anti-monopoly Law

and 2012 conditional clearance of the acquisition of Hitachi’s hard disc drive unit

by Western Digital

On December 8, 2014，MOFCOM announced on its website the administrative

penalties on Western Digital for violating the Anti-monopoly Law and MOFCOM

announcement [2012] No. 9 regarding the conditional approval of the acquisition of

Hitachi Global Storage Technologies by Western Digital Corp. (“2012 Conditional

Clearance”). MOFCOM required Western Digital to correct its illegal conducts within

the time limit and imposed fine totaling 600,000 RMB on Western Digital.

On March 8, 2012, Western Digital turned HGST, Inc.(“HGST”), one of the

subsidiaries of Viviti Technologies Ltd. (“Viviti”) to its wholly-owned subsidiary

without MOFCOM’s permission >>Read More. In addition, in January 2013, Western

Digital had eliminated the development division of Viviti/HGST and transferred all its

employees to Western Digital without MOFCOM’s permission. >>Read More

Through investigation, MOFCOM believed that the two separate conducts above had

violated Part 4(1) of 2012 Conditional Clearance, which requires Western Digital to

sustain Viviti’s pre-transaction status and make sure Viviti carry out business

operations independently as a separate legal entity.

During the investigation, Western Digital admitted its illegal conducts and submitted

a solution to correct it. According to Anti-monopoly Law and Administrative Penalty

Law of People’s Republic of China, MOFCOM imposed a fine of 600,000 RMB and

required Western Digital to correct its illegal conducts within 45 days since the date

of notice . Back

---------------------------------

MOFCOM imposes penalty on Unigroup Corp. Ltd. for failing to notify the

acquisition of RDA

On December 8, 2014, MOFCOM announced on its website the administrative

penalties on Unigroup Corp. Ltd. (“Unigroup”) for failing to notify its acquisition of

RDA. MOFCOM imposed a fine of 300,000 RMB on Unigroup.

On March 12, 2014, MOFCOM docketed the case on Unigroup for suspected failure

to notify its acquisition of RDA Microelectronics under the law and conducted an

antitrust investigation. As revealed through the investigation, on November 11, 2013,

Unigroup and RDA signed an acquisition agreement and Unigroup acquired all RDA

shares for 907 million USD. The acquisition was completed in July, 2014. The

turnovers of all the participating undertakings (Unigroup and RDA) reached the

notification thresholds of concentration of undertakings.

Through investigation, MOFCOM believed that Unigroup violated Article 21 of

Anti-monopoly Law, which prescribes that a proposed concentration of undertakings meets the notification thresholds prescriber by the State Council, the participating

undertaking shall make a notification filing with the competent State Council

http://fldj.mofcom.gov.cn/article/zcfb/201501/20150100863949.shtml

http://tfs.mofcom.gov.cn/article/ckts/ckzcfg/201412/20141200824270.shtml


2 Disclaimer: This bulletin is provided for informational purposes only and is not legal advice. The transmission and

receipt of information contained in the document do not form or constitute an attorney-client relationship.

Anti-monopoly Enforcement Authority in advance, and may not consummate the

concentration without such filing. >>Read More Back

---------------------------------

SAIC publishes local branch’s penalties on four quarries for horizontal monopoly

agreement in Wuxi County, Chongqing

On November 4, 2014, SAIC announced on its website the administrative penalties

imposed by Chongqing Administration for Industry and Commerce (“CQAIC”)

against Donghan Quarry and other 3 quarries (“the Parties”) for their horizontal

monopoly agreement in Wuxi County, Chongqing. Considering that the Parties were

self-employed and didn’t set up financial ledger as individual firms, their income and

tax paid can’t be calculated. Therefore, CQAIC could not count the Parties’ illegal

income gained by dividing sale markets. As a result, CQAIC required the parties to

cease the illegal conducts and imposed a fine totaling 400,000 RMB on Zhang Xiaobo,

Wen Aiyuan, Wen Xianxue, and Wu Gongxiao.

On March 24, 2012, Wuxi County Public Security Bureau transferred the case clues

to Wuxi County Administration for Industry and Commerce that Zhang Xiaobo, Wu

Gongxiao and others were suspected to have engaged in monopolistic conducts. Wuxi

County Administration for Industry and Commerce immediately transferred the clue

to CQAIC. On December 17, 2012, as authorized by SAIC, CQAIC docketed the case

and conducted antitrust investigations against the parties.

Through investigation, the competing parties engaged in quarry exploitation and

wholesale sale in the Shanghuang district, and mainly sold quarry to Fengxi highway

contractors. In addition, the highway contractors had no alternative but to buy the

building product from the Parties (four local quarries) due to cost constrains. The

Parties reached oral agreement and carried out monopolistic conducts through

dividing sale markets. Upon the evidence materials, CQAIC believed that the parties

violated 13(1) of the Anti-monopoly Law, which prescribes that the competing firms

shall not reach monopoly agreement for allocating product sales markets or input

procurement markets. >>Read More Back

---------------------------------

SAIC publishes local branch’s penalty on Pizhou Branch of Jiangsu Province

Xuzhou Municipal Tobacco Company for abuse of dominance

On November 4, 2014, SAIC announced on its website the administrative penalty

imposed by Jiangsu Administration for Industry and Commerce (“JSAIC”) against

Pizhou Branch of Xuzhou Municipal Tobacco Company (“the Party”) for abuse of

dominance. As tobacco belongs to monopolized products and its sale volume and

price depend on state plan, the Party cannot obtain extra income through abuse of

dominance. Therefore, JSAIC required the party to cease its illegal conducts and

imposed a fine of 1,723,745.04 RMB (1% of the party’s revenue of the preceding year

in tobacco market in demand), but didn’t confiscate its illegal income.

In February 2013, JSAIC received a complaint stating that in tobacco wholesale

business, the Party provided cigarettes in demand to three tobacco retailers of Golden

Eagle Trade Service Limited Corp. much more than to other tobacco retailers. The

whistleblower believed such behaviors had violated Anti-monopoly Law and required

the industry and commerce department to carry out an antitrust investigation. On

August 19, 2013, as authorized by SAIC, JSAIC docketed the case and conducted an

antitrust investigation against the party.

Through investigation, JSAIC believed that as the only tobacco wholesale firm in Pizhou market, the Party treated tobacco retailers with same conditions differently.


http://www.saic.gov.cn/zwgk/gggs/jzzf/201411/t20141104_149671.html



Such behaviors destroyed the fair competition in tobacco retail market and violated

Article 17(1) of China’s Anti-monopoly Law, which prescribes that firms with

dominant market position shall not discriminate among trade counterparties under the

same conditions in respect of transaction terms, such as pricing, without

justification. >>Read More Back

---------------------------------

SAIC publishes local branch’s penalty on Chongqing Gas Group Corp. Ltd. for

abuse of dominance

On November 28, 2014, SAIC announced on its website the administrative penalty

imposed by Chongqing Administration for Industry and Commerce (“CQAIC”)

against Chongqing Gas Group Corp. Ltd. (“the Party”) for abuse of dominance.

CQAIC required the party to its illegal conducts and imposed a fine of RMB

1,793,588.55 (1% of the party’s revenue of the preceding year).

On May 12, 2010, during an inspection of the city’s public service firms, CQAIC

found that several subsidiaries of Chongqing Gas Group had abused its market

dominant position as a public firm since January 2008. In selling natural gas, these

subsidiaries required those non-civil natural gas clients (Industry, Group, Business,

and CNG clients) to accept a correction coefficient based method in calculating the

price of natural gas used, through setting up work stream and signing standard

contract. The method could be described as: the final gas consumption was equal to

the normal display number on the gas table multiplied by the correction coefficient. In

June, 2011, as authorized by SAIC, CQAIC docketed the case and conducted antitrust

investigation against the party.

Through investigation, CQAIC believed that as the only public service firm in the

urban gas supply service market of Chongqing main district, the Party had engaged in

monopolistic conducts and violated Article 17(1) of the Anti-monopoly Law, which

prohibits an undertaking in dominant market position from tying products or

imposing any other unreasonable additional transaction terms in the course of a

transaction without justifiable cause. >>Read More Back

---------------------------------

SAIC publishes local branch’s penalties on Shangyu Commodity Concrete

Industry Association and some of its members for monopoly agreement

On December 1, 2014, SAIC announced on its website the administrative penalties

imposed by Zhejiang Administration for Industry and Commerce (“ZJAIC”) against

Shangyu Commodity Concrete Industry Association (“Industry Association”) and

some of its members for suspected monopoly agreement. ZJAIC required the Industry

Association, Shangyu Yonggu Concrete Co., Ltd. (“Shangyu Yonggu”), Shaoxing

Yangli Concrete Co., Ltd. (“Shaoxing Yangli”), Shaoxing Hengda Pipe Pile Co., Ltd.

(“Shaoxing Hengda”), Shangyu Xianfeng Concrete Co., Ltd. (“Shangyu Xianfeng”),

Shangyu Wanfeng Concrete Co., Ltd. (“Shangyu Wanfeng”), Zhejiang Jiuding Pipe

Pile Co., Ltd. (“Zhejiang Jiuding”), Shangyu Puyin Concrete Co., Ltd. (“Shangyu

Puyin”) and Shangyu Yonglei Building Materials Co., Ltd. (“Shangyu Yonglei”)

(collectively “the Parties”) to correct the illegal conducts and imposed a fine totaling

1,720,000 RMB.

Since April 30, 2010, Shangyu Yonggu held the concrete industry conferences for

setting up the concrete industry association with Shaoxing Yangli, Shaoxing Hengda,

Shangyu Xianfeng, Shangyu Wanfeng, Zhejing Jiuding and Shangyu Puyin, and then

Shangyu Yonggu had been decided as the president of unit. On May 1, 2011, Shangyu

Yonglei joined the industry association. Meanwhile, the eight members signed a





Shangyu Premixed Concrete Undertaking Agreement and reiterated relevant

agreements such as the Shangyu Concrete Industry Association Member

Undertakings Joint Statement and the Shangyu Concrete Industry Association

Self-discipline Pact. These agreements mainly readjusted the market share of each

undertaking in local market: Yonggu 33.5%, Xianfeng 10%, Yangli 9.5%, Wanfeng

16.5%, Puying 6.5%, Hengda 9%, Jiuding 7.5% and Yonglei 7.5%. On August 26,

2011, as authorized by SAIC, ZJAIC docketed the case and conducted antitrust

investigation against the parties.

Through investigation, ZJAIC believed that, by providing platform for member

undertakings to formulate and carry out monopoly agreements on dividing market

share, the Industry Association had violated Article 16 of the Anti-monopoly Law,

which prescribes that an industry association may not organize the undertaking in

such industry to engage in any monopolistic conduct prohibited by Chapter Two. In

addition, the eight members belonged to competing undertakings; they divided up

Shangyu concrete market share by setting up Industry Association and signing a series

of agreements. Such behaviors had violated the Article 13(3) of the Anti-monopoly

Law, which prohibits competing firms from reaching monopoly agreements for

allocating product sales markets or input procurement markets. >>Read More Back

---------------------------------

JSAIC held the 7th

Suzhehu Competition Enforcement Cooperation Seminar

Recently, Jiangsu Administration for Industry and Commerce (“JSAIC”) held the 7th

Suzhehu (Jiangsu, Zhejiang and Shanghai) Competition Enforcement Cooperation

Seminar. The officials from Anti-monopoly and Anti-unfair Competition Enforcement

Bureau of State Administrative for Industry and Commerce (“SAIC”), Shanghai

Municipal Administration for Industry and Commerce (“SHAIC”), Zhejiang

Administration for Industry and Commerce (“ZJAIC”) and JSAIC, had attended the

seminar.

During the meeting, JSAIC, ZJAIC and SHAIC jointly signed the Yangtze River

Delta Region Competition Enforcement Cooperation Agreement, which for the first

time standardized the competition enforcement cooperation such as trans-region case

investigation cooperation, case transferring and information sharing in written form,

and decided to set up “Yangtze River Delta Region Competition Enforcement QQ

Group,” so that the enforcement officials can exchange their enforcement experiences

and share information much easier. >>Read More Back

---------------------------------

Jiangsu Price Bureau applies for compulsory execution of fine decisions on

certain parties in the Nanjing Concrete Industry Association and 37 firms Price

Monopoly Case

On December 8, 2014, NDRC announced on its website that, Nanjing Intermediate

Court (“the Court”) forced two parties participated in price monopoly to pay the fine

according to Jiangsu Price Bureau’s application, and rejected the administrative

lawsuits brought by two concrete firms that didn’t accept Jiangsu Price Bureau’s

administrative decisions.

On August 7, 2013, according to report, Jiangsu Price Bureau carried out anti-price

monopoly investigation against Nanjing concrete industry association and some

concrete manufacturers. On December 23, 2013, Jiangsu Price Bureau imposed a fine

totaling 39,000,000 RMB on Nanjing concrete industry association and thirty-seven

firms involved in the price monopoly.

As Nanjing concrete industry association and Nanjing Jiahao New Material Co., Ltd.


http://www.saic.gov.cn/jgzf/fldyfbzljz/201411/t20141119_149949.html



refused to follow the administrative decisions, Jiangsu Price Bureau requested the

Court for enforcement, which had been completed. In addition, Nanjing Construction

Group Concrete Branch, Nanjing Jiasheng Concrete Co., Ltd. and Nanjing Dadi

Wanhong Concrete Co., Ltd. didn’t accept Jiangsu Price Bureau’s administrative

decisions, and filed administrative suits in Nanjing Intermediate Court. Through

investigation, the Court believed that the attorneys of Nanjing Construction Group

Concrete Branch and Nanjing Jiasheng Concrete Co., Ltd. misled the Court to docket

the case by providing false evidence, and both lawsuits had passed the statute of

limitation. The Court had dismissed the two suits accordingly.>>Read More Back

---------------------------------

Supreme People’s Court publishes the final judgment on Qihoo’s appeal against

Tencent for suspected monopoly conducts

On October 16, 2014, the Supreme People’s Court (“SPC”) announced on its website

the final judgment of Qihoo’s appeal against Tencent for suspected monopoly

conducts. SPC rejected Qihoo’s appeal and the original judgment was upheld, while

Qihoo should bear the entire amount of court fee (796,800 RMB).

According to the trial, SPC believes that the first court applied laws accurately and

the ruling was proper. The appellant's reasons for appeal were partially correct, but

that does not affect the ruling in this case. As a result, SPC made the final judgment

against Qihoo in accordance with Anti-monopoly Law and Civil Procedure Law.

Back

---------------------------------

Chinese anti-monopoly enforcement authorities and European Commission

DG-Competition jointly held antitrust seminar of EU-China Competition Policy

Week

From October 20 to 24, 2014, Chinese antitrust enforcement authorities and European

Commission Directorate-General for Competition (DG-Competition) jointly held the

Eighth antitrust seminar of EU-China Competition Policy Weeks in Chengdu, Sichuan.

The seminar focused on the antitrust issues in the financial industry, the formulation

and implementation of concentration review plan, the hot issues related to vertical

agreement and abuse of dominant market position, and the anti-monopoly

enforcement procedure and international cooperation. Officials from other

anti-monopoly enforcement authorities, including those of Europe, England, Portugal,

etc., and officials from NDRC, MOFCOM, SAIC and other provincial enforcement

authorities, had attended the seminar.

EU-China Competition Policy Week is an ongoing cooperation mechanism in the

WTO item between China and Europe in this area. Since 2011, the seminar had been

held twice a year. During the week, officials from both sides can communicate with

each other on issues of common interest and can be trained through seminar. It can

promote EU-China communication and cooperation and enhance China’s antitrust

enforcement abilities to help bring these benefits to business and consumers in

China. >>Read More Back

---------------------------------

United States

Toyoda Gosei Co. Ltd. agrees to plead guilty for fixing prices and rigging bids on

automobile parts installed in U.S. cars

On September 29, 2014, Toyoda Gosei Co. Ltd., an automotive parts manufacturer

http://jjs.ndrc.gov.cn/gzdt/201412/t20141208_651321.html

http://jjs.ndrc.gov.cn/gzdt/201410/t20141029_635018.html



based in Aichi, Japan, agreed to plead guilty and to pay a $26 million criminal fine for

its role in conspiracies to fix prices and rig bids for automotive hoses, airbags and

steering wheels sold to automobile manufacturers, the Department of Justice (“DOJ”)

announced.

According to a two-count felony charge filed in the U.S. District Court for the

Northern District of Ohio in Toledo, Toyoda Gosei conspired to fix the prices of

certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries,

affiliates and suppliers (collectively Toyota), in the United States; and conspired to fix

the prices of automotive airbags and steering wheels sold to Toyota and Fuji Heavy

Industries Ltd. and certain of its subsidiaries, affiliates and suppliers in the United

States and elsewhere. In addition to the criminal fine, Toyoda Gosei had agreed to

cooperate in the department’s ongoing investigation. >>Read More Back

---------------------------------

DOJ reaches settlement with 4 companies for their illegal premerger coordination

On November 7, 2014，DOJ announced a settlement with Flakeboard America

Limited(“Flakeboard”), its parent companies, Celulosa Arauco y Constitución S.A.

(“Arauco”), Inversiones Angelini y Compañía Limitada and SierraPine. The

settlement required the companies to pay a combined $3.8 million in civil penalties

for violating the Hart–Scott–Rodino (“HSR”) Act of 1976. In addition, for violating

Section 1 of the Sherman Act, Flakeboard must disgorge $1.15 million in illegally

obtained profits and both Flakeboard and SierraPine must establish antitrust

compliance programs and agree to certain restrictions.

The settlement resolved the department’s allegations that Flakeboard, Arauco and

SierraPine engaged in illegal premerger coordination while Flakeboard’s proposed

acquisition of three SierraPine mills was under antitrust review by DOJ. >>Read

More Back

---------------------------------

DOJ requires divestiture in Nexstar’s acquisition of Communications

Corporation of America

On November 26, 2014, DOJ announced that it would require Nexstar Broadcasting

Group Inc., Mission Broadcasting Inc., Communications Corporation of America

(“CCA”), and Silver Point Partners L.P. to divest their interests in WEVV-TV, a CBS

and FOX affiliate in Evansville, Indiana, in order for Nexstar to proceed with its

acquisition of CCA. Without this divestiture, the department said, Nexstar, with its

control of Mission would have gained a dominant position in broadcast television spot

advertising in the Evansville, Indiana area, resulting in higher prices to advertisers.

The Nexstar-CCA transaction was valued at approximately $270 million.

The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the

District of Columbia to block the proposed acquisition. Concurrent with the filing of

the lawsuit, the division filed a proposed settlement that, if approved by the court,

would resolve the competitive concerns alleged in the lawsuit.>>Read More Back

---------------------------------

DOJ files antitrust lawsuit to stop National Cinemerdia from buying Screenvision

On November 3, 2014, DOJ filed a civil antitrust lawsuit seeking to block National

CineMedia Inc.’s (“NCM”) $375 million acquisition of Screenvision LLC. The

department said that the acquisition would combine the only two significant cinema advertising networks in the United States, eliminating competition that has

http://www.justice.gov/atr/public/press_releases/2014/308912.htm






substantially benefitted movie theaters, advertisers and, ultimately, movie goers.

Cinema advertising networks are intermediaries between movie theaters and

advertisers. According to the department’s complaint, NCM and Screenvision

together serve 88 percent of all movie theater screens in the United States through

long-term, exclusive contracts.>>Read More Back

---------------------------------

FTC reaches settlement with Blue Rhino and AmeriGas for settling FTC’s

charges of restraining competition

On October 31, 2014, the two leading suppliers of propane exchange tanks, Blue

Rhino and AmeriGas Cylinder Exchange, had agreed to settle FTC charges that the

companies illegally agreed not to deviate from their plans to reduce the amount of

propane in tanks sold to Walmart, a key customer. Under the proposed settlements,

each company is barred from agreeing with competitors to modify fill levels or

otherwise fix the prices of exchange tanks, and from coordinating communications to

customers.

The FTC’s administrative complaint, issued in March 2014, alleges that, together,

Blue Rhino and AmeriGas controlled approximately 80 percent of the market for

wholesale propane exchange tanks in the United States. In 2008, Blue Rhino and

AmeriGas each decided to implement a price increase by reducing the amount of

propane in their exchange tanks from 17 pounds to 15 pounds, without a

corresponding reduction in the wholesale price. Faced with resistance from Walmart,

the two companies colluded by secretly agreeing to coordinate their negotiations with

Walmart in order to push it to accept the fill reduction. >>Read More Back

---------------------------------

FTC conditionally clears Surgery Center Holding’s acquisition of competitor

Symbion

On October 31, 2014, the Federal Trade Commission (“FTC”) required Surgery

Center Holdings, Inc., known as Surgery Partners, and Symbion Holdings

Corporation to divest Symbion’s ownership interest in an ambulatory surgery center

in Orange City, Florida, as part of a settlement resolving charges that Surgery Partners’

$792 million purchase of Symbion would be anticompetitive. The action was part of

the commission’s ongoing effort to protect American consumers from higher

healthcare costs.

Both companies operate a large number of ambulatory surgery centers located

throughout the country that sell and provide outpatient surgical services to

commercial health plans and commercially insured patients. The proposed merger

would have combined the only two multi-specialty ambulatory surgical centers in the

Orange City/Deltona area of Florida, and would have left commercial health plans

and commercially insured patients there with only one meaningful alternative to

Surgery Partners’ outpatient surgical services. >>Read More Back

---------------------------------

FTC conditionally clears pharmaceutical joint venture between GlaxoSmithKline

and Novartis

On November 26, global pharmaceutical company Novartis AG agreed to divest

Habitrol, its nicotine replacement therapy patch, to settle FTC charges that its

consumer health care products joint venture with GlaxoSmithKline (“GSK”) would likely be anticompetitive. GSK currently sells its own nicotine replacement patch,


http://www.ftc.gov/news-events/press-releases/2014/10/blue-rhino-amerigas-settle-ftc-charges-restraining-competition

http://www.ftc.gov/news-events/press-releases/2014/10/ftc-requires-divestiture-condition-surgery-center-holdings



Nicoderm CQ.

Under the terms of the proposed joint venture agreement, GSK will control the joint

venture and contribute, among other products, its nicotine patch business. Novartis

will have a 36.5 percent interest in the joint venture, and without the divestitures

required by the proposed order, would continue to own the Habitrol business, which

had U.S. sales of more than $58 million in 2013. >>Read More Back

---------------------------------

FTC conditionally clears Medtronic’s Proposed Acquisition of Covidien

On November 26, 2014, Global medical technology company Medtronic, Inc. had

agreed to divest the drug-coated balloon catheter business of Ireland-based medical

products company Covidien plc, in order to settle FTC charges that its $42.9 billion

acquisition of Covidien would likely be anticompetitive. Under the FTC’s proposed

settlement, Medtronic will sell the drug-coated balloon catheter business to the

Spectranetics Corporation, a Colorado-based medical device company.

According to the FTC’s complaint both Medtronic and Covidien are developing

drug-coated balloon catheters to compete with C.R. Bard, Inc., which currently is the

only company that supplies these products, used to treat peripheral artery disease, in

the U.S. market. Medtronic and Covidien are the only companies with products in

clinical trials in the Food and Drug Administration’s approval process, which makes it

unlikely that other competitors could enter the market in time to counteract the effects

of the merger, the FTC alleged. >>Read More Back

---------------------------------

DOJ and FTC sign cooperation agreement with Colombian Antitrust Agency

On September 16, 2014, Assistant attorney general Bill Baer of DOJ’s Antitrust

Division had signed an antitrust cooperation agreement with the Colombian antitrust

agency on behalf of the DOJ. The agreement also was signed by FTC Chairwoman

Edith Ramirez, and went into effect on the very same day with the signature of Pablo

Felipe Robledo, Colombia’s Superintendent of Industry and Commerce. The

agreement will enable the antitrust agencies in the two countries to further enhance

their law enforcement relationship.

The new agreement contains provisions for antitrust enforcement cooperation and

coordination, conflict avoidance and consultations with respect to enforcement

actions, and technical cooperation. The agreement also contains confidentiality

protections. The U.S. antitrust agencies and Colombia’s Superintendence of Industry

and Commerce, the agency that enforces Colombia’s competition law, have built a

strong enforcement relationship over the years. >>Read More Back

---------------------------------

European Union

EC fines smart card chips producers € 138 million for cartel

On September 3, 2014, the European Commission (“EC”) had found that Infineon,

Philips, Samsung and Renesas (at the time a joint venture of Hitachi and Mitsubishi)

coordinated their market behaviour for smart card chips in the EEA, in breach of EU

rules that prohibit cartels. EC had imposed fines totalling € 138,048,000. The

companies colluded through bilateral contacts that took place in the period between

September 2003 and September 2005. Renesas benefitted from full immunity under

the Commission's 2006 Leniency Notice for revealing the existence of the cartel to

http://www.ftc.gov/news-events/press-releases/2014/11/ftc-puts-conditions-pharmaceutical-joint-venture-between

http://www.ftc.gov/news-events/press-releases/2014/11/ftc-puts-conditions-medtronics-proposed-acquisition-covidien

http://www.ftc.gov/news-events/press-releases/2014/11/ftc-puts-conditions-medtronics-proposed-acquisition-covidien




the Commission. >>Read More Back

---------------------------------

EC confirms unannounced inspections in biofuel sector

On October 7, 2014, EC officials carried out unannounced inspections at the premises

of companies active in the production, distribution and trading of ethanol, a biofuel.

These inspections took place in two EU Member States. They follow inspections that

the Commission and the EFTA Surveillance Authority undertook in May 2013 in the

crude oil, refined oil products and biofuel sectors. EC had concerned that price

benchmarks may have been distorted through anti-competitive behaviour, including

through possible collusion when submitting price information to a Price Reporting

Agency. >>Read More Back

---------------------------------

EC fines Slovak Telekom and its parent, Deutsche Telekom, for abusive conduct

in Slovak broadband market

On October 15, 2014, EC imposed a fine of €38,838,000 on Slovak Telekom a.s. and

its parent company, Deutsche Telekom AG, for having pursued during more than five

years an abusive strategy to shut out competitors from the Slovak market for

broadband services, in breach of EU antitrust rules. In particular, EC concluded that

Slovak Telekom refused to supply unbundled access to its local loops to competitors,

and imposed a margin squeeze on alternative operators. Deutsche Telekom as parent

company with decisive influence is also responsible for the conduct of its subsidiary;

it is therefore jointly and severally liable for Slovak Telekom's fine. Deutsche

Telekom also received an additional fine of €31,070,000 to ensure sufficient

deterrence as well as to sanction its recidivism, as it had already been fined in 2003

for a margin squeeze in broadband markets in Germany. >>Read More Back

---------------------------------

EC sends statement of objections to Honeywell and DuPont regarding

cooperation on new refrigerant used in car air conditioning systems

On October 21, 2014, EC informed Honeywell and E.I. du Pont de Nemours of its

preliminary view that the cooperation they entered into in 2010, based on several

agreements on the production of a new refrigerant for use in car air-conditioning

systems (R-1234yf), may have limited its availability and technical development, in

breach of EU antitrust rules. >>Read More Back

---------------------------------

EC settles RBS-JPMorgan cartel in derivatives based on Swiss franc LIBOR

On October 21, 2014, EC found that two international banks, RBS and JP Morgan,

participated in an illegal bilateral cartel aimed at influencing the Swiss franc Libor

benchmark interest rate between March 2008 and July 2009. Such collusion was

prohibited by EU antitrust rules. The banks agreed to settle the case with EC under a

simplified procedure. RBS received immunity from fines for revealing the existence

of the cartel to EC. JPMorgan was fined € 61,676,000 after benefitting from a

reduction of its fine for its cooperation with the investigation under the Commission's

2006 Leniency Notice, as well as a 10% reduction for agreeing to settle the case with

the European Commission. >>Read More Back

---------------------------------

http://europa.eu/rapid/press-release_IP-14-960_en.htm?locale=en

http://europa.eu/rapid/press-release_MEMO-14-581_en.htm?locale=en






EC approves acquisition of WhatsApp by Facebook

On October 3, 2014, EC authorized the proposed acquisition of WhatsApp Inc. by

Facebook, Inc., both of the United States. Facebook (via Facebook Messenger) and

WhatsApp both offer applications for smartphones (so-called "apps") which allow

consumers to communicate by sending text, photo, voice and video messages. The

Commission found that Facebook Messenger and WhatsApp are not close

competitors and that consumers would continue to have a wide choice of alternative

consumer communications apps after the transaction. Although consumer

communications apps are characterized by network effects, the investigation showed

that the merged entity would continue to face sufficient competition after the

merger. >>Read More Back

---------------------------------

EC conditionally clears merger between Hapag Lloyd and CSAV in container

liner shipping sector

On September 11, 2014, EC cleared the proposed merger between Hapag Lloyd, a

German shipping company with worldwide activities, and rival Compañia Sud

Americana de Vapores S.A. (“CSAV”) of Chile. The clearance was conditional upon

the withdrawal of CSAV from two consortia on the trade between Northern Europe

and the Caribbean and South America's West Coast, where the merged entity would

have faced insufficient competitive constraint to avoid a risk of price raises. The

commitments offered by the two companies addressed these concerns. >>Read More

Back

---------------------------------

EC conditionally clears merger between banana companies Chiquita and Fyffes

On October 3, 2014, EC conditionally cleared the proposed merger between Chiquita

Brands International of the US and Fyffes of Ireland. Whilst the merger brings

together the number 1 and 2 suppliers of fresh bananas in Europe, the Commission's

investigation found that healthy competition will be preserved in the relevant markets,

thanks to the two companies' relatively low and decreasing overall share of banana

imports into the main Northern European ports, competition from an increasing

number of other players and the strong position of supermarkets, which develop their

own private label bananas. However, in order to prevent any risk of shutting out

competitors at the shipping level, the clearance was conditional upon Fyffes releasing

the shipping company Maersk from an exclusivity clause and upon both Chiquita and

Fyffes refraining in the future from agreeing similar exclusivity provisions with

shipping companies or incentivising shipping companies to refuse to provide services

for other banana companies. >>Read More Back

---------------------------------

EC conditionally clears aerospace and defence joint venture between Airbus and

Safran

On November 26, 2014, EC had concluded that the proposed creation of a joint

venture for space launchers, satellite subsystems and missile propulsion between

Airbus Group N.V. of The Netherlands and Safran S.A. of France was in line with the

EU Merger Regulation. Both Airbus and Safran are active in the aerospace and

defence industries. The decision was conditional upon the exclusion of Safran's

activities in electric satellite thrusters from the joint venture, as well as on certain

supply assurance commitments. EC had concerned that the joint venture could have shut out Airbus' competitors or limited their access to certain supplies, as well as

http://europa.eu/rapid/press-release_IP-14-1088_en.htm

http://europa.eu/rapid/press-release_IP-14-998_en.htm




transmitted strategic information to Airbus. The commitments offered by Airbus and

Safran addressed these concerns. >>Read More Back

---------------------------------

EC conditionally clears acquisition of Covidien by Medtronic

On November 28, 2014, EC had cleared the proposed acquisition of Covidien, a

global Ireland-based manufacturer of medical devices, by Medtronic, a US-based

company active in medical technologies and therapies. The decision was conditional

upon the divestment of Covidien's Stellarex, a promising drug coated balloon

currently in development, which, once launched, would compete with Medtronic's

leading drug coated balloon device In.Pact. EC had concerns that the transaction, as

initially notified, would have removed a credible future competitor of Medtronic and

reduced innovation in this area. The commitments offered by Medtronic addressed

these concerns.>>Read More Back

---------------------------------

EC welcomes General Court judgment confirming its inspection powers in the

area of electronic searches

On November 26, 2014, EC welcomed the judgment of the EU General Court,

dismissing an appeal by Energetický a prumyslový holding (“EPH”) and its

subsidiary EP Investment Advisors (“EPIA”) against a €2.5 million fine EC imposed

on them in 2012. EPH and EPIA were fined for obstructing a Commission inspection

in an antitrust investigation, by failing to block an email account and diverting

incoming emails. The judgment sent a clear message to companies that any steps that

undermine the integrity and effectiveness of inspections, including tampering with

data stored electronically, are illegal and will be sanctioned. >>Read More Back

---------------------------------

Australia

ACCC conditionally clears minimum retail prices on Festool power tools

On October 21, 2014, ACCC had issued a draft determination proposing to grant

conditional authorization to Tooltechnic Systems (“Aust”) Pty Ltd (“Tooltechnic”) to

set minimum retail prices on Festool power tools for three years. The ACCC was

seeking submissions from interested parties in relation to its draft determination,

before making a final decision. Submissions were due by 7 November 2014.

This is the first ever application for authorization to set minimum retail prices, a

practice known as resale price maintenance, under the Competition and Consumer Act

2010. >>Read More Back

---------------------------------

Court imposes penalties of $8.3 million for Sydney forklift gas cartel

On October 24, 2014, the Federal Court had by consent imposed penalties totaling

$8.3 million against Renegade Gas Pty Ltd (trading as Supagas NSW, a privately

owned company) (“Renegade Gas”), Speed-E-Gas (“NSW”) Pty Ltd (“Speed-E-Gas”)

(a wholly owned subsidiary of Origin Energy Limited), and three current and former

senior officers of the two companies for engaging in cartel conduct.

The Court found that from at least 2006 until 2011, Renegade Gas and Speed-E-Gas,

through their senior officers and sales staff, gave effect to a no-poaching



http://europa.eu/rapid/press-release_MEMO-14-2181_en.htm

http://accc.gov.au/media-release/accc-proposes-to-conditionally-authorise-minimum-retail-prices-on-festool-power-tools



understanding between the two companies, which included each company not

supplying liquid petroleum gas cylinders for forklifts (forklift gas) to each other’s

customers.

Justice Gordon ordered Renegade Gas to pay a penalty of $4.8 million, and

Speed-E-Gas a penalty of $3.1 million, for engaging in cartel conduct. Speed-E-Gas

cooperated with the ACCC’s investigation from a very early stage, and the penalties

imposed on it reflected that cooperation. >>Read More Back

---------------------------------

Court dismisses air cargo cartel proceedings against Air New Zealand and

Garuda Indonesia

On October 31, 2014, the Federal Court had dismissed proceedings brought by the

Australian Competition and Consumer Commission (“ACCC”) against Air New

Zealand Ltd (“Air New Zealand”) and PT Garuda Indonesia Ltd (“Garuda”) for

alleged price fixing in the air cargo industry. The proceedings against Air New

Zealand and Garuda concerned alleged arrangements or understandings with other

international air cargo carriers in the period between 2001 and 2006, to fix fuel,

security and insurance surcharges on air cargo services.

Whilst Justice Perram concluded that a number of collusive arrangements were made

out. He found that the conduct did not take place in a “market in Australia” as

required by the Trade Practices Act 1974 (now the Competition and Consumer Act

2010) at that time. >>Read More Back

---------------------------------

Korea

KFTC imposes penalty on Dr.Chung’s Food Corporation for forcing agents to

order goods

On December 1, 2014, Korean Fair Trade Commission (“KFTC”) announced on its

official website the decision against Dr.Chung’s Food Corporation for forcing agents

to order goods and banning return of such goods. KFTC required Dr.Chung’s Food

Corporation to correct the above illegal conducts within the time limit, and imposed a

fine of KRW 235 million.

During 2001 and June, 2013, Dr.Chung’s Food Corporation stimulated the minimum

order amount of special goods for the agents, and informed them by fax, e-mail and

oral notice. If the agents didn’t order the minimum amount of goods, Dr.Chung’s

Food’s staffs can change orders at will and distribute the minimum amount of goods

to the agents forcibly. In addition, Dr.Chung’s Food prohibited agents from returning

goods, and the agents couldn’t return the redundant goods. Therefore, the agents can

only handle such goods through dumping or discard. >>Read More Back

---------------------------------

Japan

JFTC starts secondary review concerning the proposed acquisition of shares of

Chuetsu Pulp & Paper Co.Ltd. by Oji Holdings Corporation

The Japan Fair Trade Commission (“JFTC”) received the notification pursuant to the

provision of the Antimonopoly Law from Oji Holdings Corporation (“Oji”)

concerning the proposed acquisition of shares of Chuetsu Pulp & Paper Co., Ltd.

(“Chuetsu”), and had reviewed possible impacts on competition from the proposed acquisition of shares. With the knowledge that a more in-depth review was necessary,

http://accc.gov.au/media-release/court-orders-penalties-of-83-million-for-sydney-forklift-gas-cartel

http://accc.gov.au/media-release/court-dismisses-air-cargo-cartel-proceedings-against-air-new-zealand-and-garuda-indonesia

http://www.ftc.go.kr/news/policy/competeView.jsp?news_no=2390&news_div_cd=1&currpage=1&searchKey=&searchVal=



JFTC requested Oji to submit further reports, information or materials, pursuant to the

provision of Article 10(9) of the AMA. JFTC also started seeking comments from

third parties concerning possible impacts on competition that would arise from the

proposed acquisition of shares.

The request by JFTC for reports, etc. didn’t mean that the proposed acquisition of

shares would pose any concerns with respect to the Antimonopoly Law. >>Read More

Back

---------------------------------

Brazil

CADE conditionally clears acquisition of Innova by Videolar

On October 1, 2014, the Administrative Council for Economic Defense (“CADE”)

conditionally cleared acquisition of Innova S/A by Videolar S/A. The two companies

operate in the petrochemical sector and produce, among other products, polyethylene

and plastic resin, used as an input to disposable products, packaging, household

appliances and electronics white goods.

The transactions result in a duopoly in the Brazilian polyethylene market, since there

is only one company besides Innova and Videolar that operate in this sector: Unigel.

However, it was verified that Unigel has enough productive capacity to compete with

them.

Furthermore, the demand for polyethylene is decreasing due to the increased use of

polypropylene and acrylonitrile butadiene styrene (“ABS”) in some products. These

two resins, can apply competitive pressure on the polyethylene in the national market,

limiting this resin producers’ capacity to abuse of an eventual market power. On the

other side, CADE held that the entrance of new companies in this market is unlikely.

To mitigate the competition problems identified in the transactions, the companies

signed an agreement with CADE committing to execute measures that aim to prevent

potential anticompetitive effects. >>Read More Back

---------------------------------

CADE prohibits Braskem’s acquisition of Solvay

On November 12, 2014, CADE blocked the acquisition by Braskem S/A of Solvay

Indupa. The companies are the two only producers in the Brazilian market of

Suspension PVC (“PVC-S”) and Emulsion PVC (“PVC-E”), an input used mainly in

the civil construction sector.

CADE was of the views that the merger, involving the first and second leading

companies in the PVC market in South America, would affect the products’

competitiveness in the national industry. Along the analysis of the case, it was

identified that importing products presents a series of competitive disadvantages, such

as longer delivery times and increased costs.

As the parties did not present proposals with solutions to diminish the identified

competition concerns, especially regarding the increased market power Braskem

would have due to the acquisition of its main competitor, the Council decided to

prohibits the transaction. >>Read More Back

---------------------------------

Russia

http://www.jftc.go.jp/en/pressreleases/yearly-2014/December/141203.html

http://www.cade.gov.br/Default.aspx?3df00108190ee220ea58eb7ad778

http://www.cade.gov.br/Default.aspx?9bae7f8a9b71878c9eabbc89d862



Arbitration Appeal Court confirms legitimacy of the decision of the FAS

regarding “Auchan” Ltd.

On November 6, 2014, the 9th Arbitration Appeal Court confirmed legitimacy of the

decision of the Federal Antimonopoly Service (“FAS”) regarding “Auchan” Ltd. In

2013, FAS found that “Auchan” Ltd. violated the Competition Law by creating

discriminatory conditions for suppliers of milk and dairy products.

FAS established that “Auchan” Ltd. forced suppliers of milk and dairy products to

pay different fees for the same volume of services on promoting and increasing sales

of their goods (advertising the goods by demonstrating samples in the “Auchan”

stores). FAS issued a determination to the company to eliminate violations of the

antimonopoly law. Based on this decision, FAS opened administrative proceedings

against “Auchan” Ltd.

The company disagreed with the decision of the FAS and filed a lawsuit. However,

the Appeal Court dismissed the claim recognizing legitimacy of FAS's

decision.>>Read More Back

---------------------------------

FAS imposes penalty on Gorvodokanal for abuse of market dominance

On November 12, 2014, the Office of the FAS in the Komi Republic found that

Gorvodokanal, a Municipal Unitary Enterprise as a natural monopoly on Pechora

market of water supply, abused market dominance. Therefore, FAS imposed a fine of

RUB 1.4 million.

In June 2013, Gorvodokanal switched off water supply and waste water collection

from the facilities of one of its subscribers – “TEK-Pechora” Ltd. for more than 24

hours. Gorvodokanal boiler houses provided district hot water supply to individuals

and social facilities in Pechora. As a result of terminating water supply, two medical

institutions, five schools, six day-care centres and several residential houses lost hot

water supply.

At the time of the shutdown, “TEK-Pechora”Ltd. was indebted to Gorvodokanal.

Under the Federal Law “On Water Supply and Water Drainage”, however, if

terminating water supply can result in switching off medical and general educational

institutions, the supplier has no right to fully restrict the water supply. >>Read More

Back

---------------------------------

India

CCI issues order against Coal India Limited and its subsidiaries for abusing

dominant position

On October 27, 2014, the Competition Commission of India (“CCI”) had issued two

separate orders against Coal India Limited (“CIL”) and its subsidiaries for abusing

their dominant position.

In Case No. 59 of 2013, CCI found the stipulations provided in clause 9.2 of Spot

e-Auction Scheme 2007 in contravention of the provisions of the Competition Law,

2002 for imposing unfair conditions upon the bidders.

In Case No. 88 of 2013, CCI held that CIL and its subsidiaries operate independently

of market forces and enjoy undisputed dominance in the relevant market of

“production and supply of non-coking coal to the thermal power producers in India”. CCI inter alia held CIL and its subsidiaries in contravention of the provisions of the

http://en.fas.gov.ru/news/news_34046.html

http://en.fas.gov.ru/news/news_34050.html



Competition Law for imposing unfair conditions in Fuel Supply Agreements with the

power producers for supply of non-coking coal. >>Read More Back

---------------------------------

South Africa

Competition Commission probes collusive conduct in automotive industry

On October 13, 2014, the Competition Commission had launched investigations into

price fixing, market division and collusive tendering in the market for the

manufacture and supply of automotive components supplied to original equipment

manufacturers (OEMs) such as Toyota Motor Corporation, Nissan Motor Company,

Honda Motor Corporation, General Motors Corporation, Volvo Car Corporation,

Mazda Motor Corporation and Ford Motor Corporation, etc. The investigations arisen

from information received by the Commission that automotive component

manufacturers colluded when bidding for tenders to supply automotive components to

the OEMs.

The information in the possession of the Commission suggested that from 2000 to

date, 82 automotive component manufacturers have colluded in respect of 121

automotive components. The Commission’s investigation into this pervasive collusive

conduct joins similar investigations launched in other jurisdictions internationally.

The Commission would prioritise the investigation of cases that involve automotive

components that are in vehicles assembled in and supplied to the South African

market. >>Read More Back

---------------------------------

Legislation

China

MOFCOM publishes the provision on imposing restrictive conditions on

concentration of undertakings (trial implementation)

On December 4, 2014, in order to regulate the antimonopoly enforcement work of

imposing restrictive conditions on concentration of undertakings, MOFCOM

published the provision on imposing restrictive conditions on concentration of

undertakings (trial implementation) (“the Provision”) in accordance with

Anti-monopoly Law. The Provision takes effect on January 5, 2015. The Provision

stipulates types of restrictive conditions, the determination of restrictive conditions,

the standard in determining buyers of business under divestment and the procedure of

divestment, etc., which is significant for regulating the determination, fulfillment and

supervision of restrictive conditions on concentrations of undertakings.

On March 27, 2013, MOFCOM promulgated the draft of the Provision and solicited

opinions from the public. On September 30, 2014, after hearing opinions from related

government departments, industry associations, foreign antitrust enforcement

authorities, domestic and foreign experts and lawyers, MOFCOM deliberated and

approved the Provision at the 29th ministerial session. >>Read More Back

---------------------------------

European Union

EC welcomes Council adoption of directive on antitrust damages actions

On November 10, 2014, the EU Council of Ministers had formally adopted a Commission proposal for a directive on antitrust damages actions. The directive will

http://www.cci.gov.in/May2011/PressRelease/PressReleaseCoalCases.pdf

http://www.compcom.co.za/wp-content/uploads/2014/09/Competition-Commission-probes-collusive-conduct-in-automotive-industry.pdf

http://tfs.mofcom.gov.cn/article/zcfb/201412/20141200835233.shtml



help citizens and companies claim damages if they are victims of infringements of EU

antitrust rules, such as cartels or abuses of dominant market positions. Among other

things, it will give victims easier access to evidence they need to prove the damage

suffered and more time to make their claims.

The directive is designed to achieve a more effective enforcement of the EU antitrust

rules overall: it will fine-tune the interplay between private damages claims and

public enforcement, and preserve the attractiveness of tools used by European and

national competition authorities, in particular leniency and settlement programmes.

In April, the European Parliament had already approved a compromise text of the

Commission's initial proposal. The directive was expected to be formally signed

during the Parliament's plenary session at the end of November. Member States would

have two years to implement it.>>Read More Back

---------------------------------

Australia

ACCC publishes the updated immunity policy to uncover cartel conduct

On September 10, 2014, ACCC had published its updated Immunity and cooperation

policy for cartel conduct. ACCC regularly reviewed the effectiveness of its immunity

policy. Following targeted consultation in 2013 and early 2014, ACCC had simplified

the format of the policy.

The policy incorporates the following key changes identified during consultation:

• implementing a two-step process for the Commonwealth Director of Public

Prosecutions (“CDPP") to grant criminal immunity for cartel conduct where the

CDPP will ordinarily issue a letter of comfort first, and subsequently provide an

undertaking under the Director of Public Prosecutions Act 1983;

• removing “clear leader” as a disqualification for immunity; and

• consolidating various publications into one policy document and a set of

FAQs. >>Read More Back

---------------------------------

Zhong Lun in the News

Zhong Lun Partner Zhang Baisha invited to attend Korea Competition Seminar

On September 25, 2014, Korea Competition Seminar was held by Woletrs Kluwer of

global leading profession information service and publishing group in Seoul. Zhang

Baisha, Zhong Lun Partner, was invited to attend and speak. More than 60

participants, including antitrust enforcement officials from China, Hong Kong, Korea,

Japan, Europe and United States, etc., general counsels from companies on the

fortune global 500, scholars and lawyers, attended the seminar.

The seminar mainly focused on the latest progress of antitrust enforcement and the

effect of multinational corporation in emerging country, the derivative lawsuit caused

by Anti-monopoly Law in Korea, the controversy of Intellectual Property and cartel

about China, Europe and United States. Mr. Zhang analyzed in depth the latest

circumstance of antitrust enforcement of Price Anti-monopoly in China, and the

cognizance view of enforcement agency for non-price anti-monopoly, and gave

professional suggestion to the firm so as to fulfill antitrust compliance. His speech

won great applause from the audience. >>Read More Back


http://accc.gov.au/media-release/updated-immunity-policy-to-uncover-cartel-conduct

http://www.zhonglun.com/en/WebPageDetail_4_14_1191.aspx



---------------------------------

Zhong Lun Partner Scott Yu rewards ALB 2014 Client Choice Top 20

In October, 2014, Zhong Lun Law Firm Partners Scott Yu was named as one of the

Top 20 Client Choice Lawyers in China by Asian Legal Business again. Scott Yu is

assessed for being a “professional and a good adviser” by clients.

Scott Yu’s practice focuses on the cross-border M&A transactions, antitrust, FDI and

corporate matters. Scott Yu has extensive experience in advising foreign investor

across various sectors in their investments and operations in China. In addition, Yu

also acts as the leading PRC counsel in a number of mega size M&A and joint venture

transactions. His ability to find practical and creative solution for complicated legal

issues is highly regarded by clients. >>Read More Back

---------------------------------

Zhong Lun held the seminar on the latest development and hot-spot issues of

Anti-monopoly Law

On October 24, 2014, Zhong Lun Law Firm held the seminar on the latest

development and hot-spot issues of Anti-monopoly Law, jointly with China In-house

Counsel Alliance. More than 30 participants, including business representatives from

different industries, scholars and lawyers, had attended the seminar. Attorney Xue Yi

and Cen Zhaoqi, partners of Zhong Lun antitrust group, delivered informative speech

respectively on the reaction of antitrust administrative investigation and firm

compliance, and the antitrust regulation of Intellectual Property and case analysis.

They also conducted in-depth discussion with the guests present in the seminar.

Since 2013, NDRC and SAIC had carried out antitrust investigations in a wide range

of industries, including wine, infant formula, gold & jewelry, insurance, lenses and

auto parts, etc. At present, the investigations on communication, IT, medical, bank

and automobile were still ongoing. In addition, SAIC had strengthened the

formulation of Guideline on Antitrust Enforcement in the field of Intellectual Property

and Prohibitions on the Prohibition of Abuses of intellectual property rights for the

purposes of eliminating or restricting competition, and the People’s Court had

published multiple antitrust cases, including the Huawei v. IDC abuse of dominant

market position case published by Guangdong High People’s Court, and the Qihoo v.

Tencent abuse of dominant market position case published by Supreme People’s

Court. All of these showed that antitrust had become a powerful tool for enforcement

authorities and judicial authorities to the market order. To strengthen the antitrust

regulation in the field of intellectual property had become a trend. Back

---------------------------------

Zhong Lun Partner Zhang Baisha invited to speak at the 9th China Antitrust Law

Seminar

On November 7, 2014, Zhong Lun Partner, attorney Zhang Baisha was invited as a

keynote speaker to attend the 9th Antitrust Law Seminar, which was organized by

Duxes and Lingnan University in Beijing on November 7th and 8th 2014. More than

70 participants, including general counsels from companies on the fortune global 500

and large domestic companies, officers from NDRC, MOFCOM and SAIC, scholars,

and practitioners in both local and international law firms, attended the event.

The Seminar focused on the hotspots and controversial issues of Anti-monopoly Law,

covering topics of the applicability of Anti-monopoly Law in Hong Kong, Taiwan and

Macau, co-ordination between NDRC, MOFCOM and SAIC, the development and application of unfairly high price and price discrimination in China, the latest research

http://www.zhonglun.com/cn/WebPageDetail_4_14_2387.aspx



on IPR in the context of industrial economics and its implications for Anti-monopoly

Law, the strategies for firms to deal with antitrust investigation and trends of private

actions, etc. Mr. Zhang delivered the keynote speech entitled “Competition Analysis

of the Most-Favored-Customer Clause in Contract”, presenting an in-depth analysis

on balancing between restriction on competition and efficiencies generated by the

Most-Favored-Customer Clause and practical solutions. His speech won great

applause from the audience. >>Read More Back

---------------------------------

Zhong Lun Partner Zhang Baisha invited to comment at the international

seminar on competition compliance and administrative monopolies

On December 1, 2014, Zhong Lun Partner, attorney Zhang Baisha was invited as the

United Nations research fellow, to comment at the international seminar on

competition compliance and administrative monopolies, which was jointly organized

by the East China University of Political Science and Law and the Competition and

Consumer Policy Department of UN Conference on Trade and Development

(UNCTAD) in Shanghai. Mr. Zhang Baisha was invited to comment on the issues

discussed at the seminar. His insights regarding issues such as the current ineffective

judicial review of the abstract administrative monopoly, the introduction of

competition assessment mechanism in government’s policy-making process and

competition advocacy for improvement of the regulation of administrative monopoly

won applause from the participants in the seminar.

More than 70 participants, including officers from the United Nations and antitrust

law enforcement agencies, judges, corporate counsels, scholars and lawyers from

China and other countries attended the seminar. Issues of trends of competition

compliance for government regulatory actions, the assessment of competition effects,

the antitrust enforcement against administrative monopoly, the judicial review of

administrative monopoly were heatedly discussed at the event. Hassan Qaqaya, head

of the Competition and Consumer department at UNCTAD, Liu Ye, deputy director of

the Anti-Monopoly and Anti-Unfair Competition Enforcement Bureau of SAIC, Xu

Kunlin, director general of the Anti-Monopoly Bureau of NDRC spoke at the seminar.

Xu Kunlin revealed that breaking up administrative monopolies will be on the top of

the agenda for NDRC in 2015. >>Read More Back

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