In the News
OFT issues short form opinion to landowners on collaboration to speed up rural broadband roll out
The OFT has issued a short form opinion to the National Farmers' Union and the Country Land and Business Association clarifying how competition law applies to the recommendation of a rate to be charged by their members for allowing broadband cables to cross their land. The guidance published by the OFT notes that, in general terms, the recommendation of fixed prices by a trade association to its members is likely to restrict competition and breach the Chapter I prohibition. However, the OFT considers that in this case the recommendation could meet the criteria for individual exemption from the Competition Act 1998, in particular by speeding up the roll out of effective broadband to people living in rural areas. Click here.
OFT clears Facebook/Instagram deal
The OFT has cleared Facebook's proposed acquisition of Instagram. The OFT considered that, in the photo app space, there are several relatively strong competitors to Instagram, which appear to impose a stronger constraint on Instagram than Facebook's new camera app. In the social networking space, the OFT did not believe that Instagram would be uniquely placed to compete against Facebook, either as a potential social network or as a provider of advertising space. Finally, although the OFT considered that the parties may have the technical ability to limit Instagram's availability to other social networks or limit other phone apps' access to Facebook, the OFT concluded that the parties would not have the incentive to pursue such a strategy. Click here.
EU
Articles 101 and 102
- The European Commission has published a set of frequently asked questions (FAQs) on the application of Article 101 in the motor vehicle sector. The FAQs are intended to provide further guidance on the practical application of the Motor Vehicle Block Exemption Regulation and the accompanying Guidelines. Click here.
UK
OFT
- The OFT is considering undertakings in lieu offered by Vue in relation to its completed acquisition of Apollo Cinemas. The OFT has concluded that the merger would not give rise to competition concerns nationally. However, it did find that the deal raised competition concerns with respect to cinema services in four local areas in England and Wales. In order to address the OFT's competition concerns, Vue has offered to divest its interest in the Apollo cinemas in each of those four local areas. Click here.
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