In the News
OFT refers political intelligence merger to Competition Commission
The OFT has referred the anticipated acquisition of the political intelligence division of DeHavilland by Dods Group PLC to the Competition Commission. The OFT considered that, as a result of the merger, Dods will not face sufficient competitive constraints and this could result in higher prices or less quality for UK customers procuring political intelligence services. Click here.
Adverse finding in property security merger
The Competition Commission has provisionally decided that the completed acquisition by VPS Holdings Limited of SitexOrbis Holdings Limited could harm competition and lead to higher prices for many of their customers. The parties are the country's two leading suppliers of vacant property security services to local authorities and businesses. The Commission has found that the merger has given the parties a very high share of the market for social housing, with limited competition from rivals or alternatives for customers from providers in adjacent markets. The Commission has also published a notice of possible remedies to address the loss of competition, including the sale of all or part of the UK SitexOrbis business. Click here.
OFT concludes extended warranties market study
The OFT has accepted undertakings offered by the three largest UK electrical retailers to improve the way the extended warranties market works, following consultation with business and consumers. The OFT's market study of the £1 billion per year extended warranties market, published in February, highlighted a number of competition concerns that could mean customers are not getting the best value for money. To address these concerns, the OFT worked with Dixons, Comet and Argos to agree undertakings, which take into account points raised during the consultation, rather than referring the market to the Competition Commission. Click here.
EU
Articles 101 and 102
- The Advocate General's opinion has been published in the appeal brought by E.ON Energie AG against a General Court judgment which upheld a decision by the European Commission to fine E.ON EUR38 million for breaking a seal affixed during the course of a Commission investigation. The Advocate General recommends that the General Court judgment be set aside and the matter referred back to the General Court for judgment concerning the proportionality of the fine. Click here.
Mergers
The European Commission has referred to the Spanish competition authority the proposed acquisition of joint control over Shell Aviation España S.L. (SAE) of Spain by Disa Corporación Petrolífera S.A. (Disa) of Spain and Shell. After a preliminary assessment, the Commission concluded that the proposed concentration would only affect certain Spanish markets and that the Spanish competition authority would therefore be best placed to examine it. Click here.
UK
OFT
- The Groceries Market Investigation (Controlled Land) Order made by the Competition Commission in 2010 will come into effect from 1 July, allowing businesses to apply to the OFT for the removal of land use restrictions which limit competition against any of the UK's seven largest grocery retailers. Click here.
- The OFT is reviewing the anticipated acquisition by Facebook of Instagram. Click here.
Competition Commission
- The Competition Commission (CC) has published an issues statement as part of its market investigation into privately-funded healthcare services. Click here.
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