In a case mirroring claims that lend to a fine in the European Union in excess of $1 billion, the state of New York has filed an antitrust action alleging that Intel improperly monopolized the computer chip market by paying rebates to computer makers to keep them from dealing with Intel competitor AMD. The gist of the case is that Intel effectively prevented computer makers from including superior chips in their computers by strategically offering and withholding massive rebates based on computer makers’ loyalty to Dell.
FTC Approves Merck/Schering-Plough Merger with Divestitures
November 5, 2009 – 3:35 pm
The FTC has given a green light to the Merck& Co. Schering-Plough merger on the condition that Merck divest its stake in Merial Ltd an animal health joint venture with Sanofi-Aventis, and Schering divests its assets associated with nausea drugs for humans. Both companies are reported to be in the process of compiling with the divestitures in order to allow the merger to proceed.
Heavy-duty Transmission Manufacturer Illegal Forced Exclusive Dealing
October 27, 2009 – 12:34 pm
In ZF Meritor LLC and Meritor Transmission Corp. v. Eaton Corp., District of Delaware jury found that Eaton Corp. violated the Sherman Act and the Clayton Act, in the heavy-duty truck transmission market in a suit brought by two affiliates of rival ArvinMeritor Inc. In their suit, Plaintiffs claimed that Eaton used its dominant position in the marketplace to force heavy-duty truck manufacturers to enter into exclusive dealing contracts that foreclosed ArvinMeritor from more than 90 percent of heavy-duty transmission sales, which caused the demise of ArvinMeritor’s joint venture with ZF Friedrichshafen AG (ZF Meritor LLC), a plaintiff in the case, to sell the heavy-duty transmissions. Following this jury finding, the only issue left to be decided is the amount of damages, which will be determined in a separate trial in the second phase of the litigation.
Energy Crisis Antitrust Suit Is Not Barred By The Commodity Exchange Act
October 27, 2009 – 12:32 pm
In In re: Western States Wholesale Natural Gas Antitrust Litigation, District of Nevada Judge Philip M. Pro denied defendants’ bid for a judgment on the pleadings, ruling that antitrust claims against more than a dozen companies in the Western States Wholesale Natural Gas case, which stems from the 2000-2001 energy crisis, are not barred by the Commodity Exchange Act. The suit, filed by various purchaser plaintiffs, claims that defendant energy companies conspired to engage in anti-competitive activities with the intent to manipulate and artificially increase the price of natural gas for consumers by 1) knowingly delivering false reports concerning trade information to trade indexes; and 2) engaging in wash trades and churning. In their motion for judgment on the pleadings, defendants argued that the federal and state antitrust claims, as well as state unfair-competition claims, are barred by the doctrine of implied antitrust immunity. In denying defendants’ motion, Judge Pro agreed with the plaintiffs’ argument that Commodity Exchange Act does not expressly provide for antitrust immunity because its legislative history shows that Congress did not intend the CEA to oust completely the application of the antitrust laws in the regulated area.
EC Questions Airline Cooperation Agreement
October 27, 2009 – 12:25 pm
The European Commission has has issued a Statement of Objections to British Airways, American Airlines and Iberia, questioning their proposed cooperation on passenger air transport services on transatlantic routes.
IBM Under Investigation
October 15, 2009 – 1:11 pm
Various sources are reporting that the Department of Justice, Antitrust Division, is investigating IBM with respect to potential anticompetitive activities in the mainframe computer hardware and software markets. The European Commission is said to be consulting with the Division, but has not opened its own investigation.
EC Imposes Fines on Transformer Cartel
October 15, 2009 – 12:50 pm
The EC has imposed fines totally approximately $100 million on six European and Japanese power transformer producers for dividing markets from 1999 through 2003. The Commission found that the Japanese firms agreed not to sell transformers in Europe in exchange for the European firms agreement not to sell in Japan.
EC Investigating Drug Industry
October 15, 2009 – 12:47 pm
Reports have surfaced that the EC conducted raids of a number of unnamed drug companies.