News Update- January

Digital Platforms
Amazon Sues EU Antitrust Regulators Over
Italian Case {link}
Amazon is suing EU antitrust regulators for allowing the Italian competition
watchdog to pursue its own case against the US online retail giant over the way
it selects sellers, arguing that this should be wrapped into an EU
investigation, reported Bloomberg. European Commission opened an
investigation into the criteria the company uses to select winners of its
“buy box,” which allows customers to add items from a specific retailer
directly into their shopping carts. The probe will also examine whether the
company gives preferential treatment to its own retail offers and
marketplace sellers that use its logistics and delivery services.
The Italian case was launched in 2019 over the same issue but focuses on
the Italian logistics markets. Amazon said the EU should absorb the
Italian case for the sake of consistency and efficiency. “When the
European Commission decides to investigate a matter, European law says
that national competition authorities cannot investigate the same topic.
This did not occur in this instance, as the Commission’s opening decision
attempts to exclude Italy,” Amazon said in a statement

U.K. antitrust probe targets Google Chrome

privacy changes-{link}
U.K.'s competition watchdog opened a formal investigation
into Google  over supposedly pro-privacy changes the company is
making to its market-leading Chrome browser. The government
group said it will review whether the proposed tweaks violate
antitrust law.
Like Apple , Google is responding to users' privacy concerns by
making it harder for companies to track them online. Specifically,
Google's new Privacy Sandbox project  will gradually disable third-
party tracking cookies in Chrome and its Chromium browser engine—
also the foundation for rival browsers, such as Microsoft's Edge—
while giving advertisers other ways to target users with personalized
advertising.

The U.K.'s Competition and Markets Authority (CMA) was already

looking into the changes, alongside Google and the British data-
protection regulator, the Information Commissioner's Office (ICO),
before announcing the formal investigation. "As the CMA found in its
recent market study, Google’s Privacy Sandbox proposals will
potentially have a very significant impact on publishers like
newspapers, and the digital advertising market," said CMA chief
executive Andrea Coscelli in a statement.

USA

Parler sues Amazon over Web shutdown, alleges

political animus { link }

Parler LLC, a social media platform favored by supporters of Donald

Trump, sued Amazon.com Inc on Monday, accusing it of making an
illegal, politically motivated decision to shut it down to benefit Twitter
Inc.

Parler accused Amazon Web Services of hypocrisy for expressing a

lack of confidence it could properly police its platform, including by
removing content encouraging violence.It said Amazon did this
despite making no threats to suspend Twitter, where a recent top-
trending tweet demanded to “Hang Mike Pence,” the U.S. vice
president.

Amazon said the lawsuit has no merit. It said it

respects Parler’s right to decide what content to allow,
but that Parler has been “unable or unwilling” to
remove the “significant” and growing amount of
content that “encourages and incites violence,” leading
to its service suspension.

Parler wants a court order requiring Amazon to

reinstate its account

Google Disputes Texas’ Suit Over Ads Sales {link}

In December, Texas Attorney General filed a complaint about Google’s
advertising technology business, in one of several suits alleging that
Google abused its dominance of the internet search business or otherwise
broke antitrust law. Google stated on January 17, that antitrust claims in
a Texas lawsuit were “misleading,” responding in a blog post as state
attorneys general plan suits against the Alphabet unit

Asia
Chinese Watchdog Approves Cisco’s $4.5B Acacia
Deal [link]
Cisco Systems’s purchase of Acacia Communications has been approved by
China’s antitrust regulator on condition that the companies ensure fair
competition. SAMR on January 19, announced that the Acacia acquisition can
proceed provided the companies continue to service existing contracts in China
and continue to supply customers in China “in accordance with the principles of
fairness, reasonableness and non-discrimination.”.

China ramps up digital enforcement with Alibaba

probe {link}
China’s top market watchdog has begun a probe into Alibaba over alleged
anti-competition practices at the e-commerce firm, the latest of Beijing’s
efforts to curb the country’s ever-expanding internet titans.
The State Administration for Market Regulation said Thursday in a brief
statement that it is investigating Alibaba over its “choosing one from two”
policy, in which merchants are forced to sell exclusively on Alibaba and
skip rivaling platforms JD.com and Pinduoduo.
“Today, Alibaba Group has received notification from the State
Administration for Market Regulation that an investigation has been
initiated into the Company pursuant to the Anti-Monopoly Law. Alibaba
will actively cooperate with the regulators on the investigation,” Alibaba
said in a statement.

E-Commerce Policy
India considers revising foreign investment rule;
Amazon, Flipkart likely to be hit {link}
The government discussions coincide with a growing number of
complaints from India's bricks-and-mortar retailers, which have for years
accused Amazon and Walmart Inc-controlled Flipkart of creating complex
structures to bypass federal rules.
the government is considering adjusting some provisions to prevent those
arrangements, even if the e-commerce firm holds an indirect stake in a
seller through its parent, three sources said. The sources asked not to be
named because the discussions are private.
The changes could hurt Amazon as it holds indirect equity stakes in two of
its biggest online sellers in India. Amazon said e-commerce created "huge
job opportunities" and is a significant contributor to economic growth.
"Any major alterations" to the policy will adversely impact small  and
medium-sized businese.

Competition Law Developments

CCI eases disclosure requirements for
combinations {link}
Competition Commission of India (Procedure in regard to the Transaction
of Business relating to Combinations) Amendment Regulations, 2020, a
paragraph has been deleted from a format prescribed for notification of
proposed combinations.
"This was with a view to relax disclosure requirements regarding non-
compete restrictions, entered into as a part of combinations,”

The Amendment Of The German Antitrust Act

{link }
the German parliament has adopted an important amendment of the
German Antitrust Act (GWB). It introduces in particular novel rules and
instruments for the antitrust enforcement against companies in the digital
world – hence the name "GWB Digitization Act". It provides a – much
debated – new toolbox for the German competition authority
(Bundeskartellamt) to act against platforms and to assess network
effects.
In addition, the merger control thresholds are being raised, even higher
than discussed over the past year. Somewhat surprising, as introduced
only on the last day before the adoption, the new rules (Section 35 GWB)
trigger a filing obligation where the domestic turnover of one company
exceeds EUR 50m (raised from EUR 25m) and the domestic turnover of
another company exceeds EUR 17.5m (raised from EUR 5m); as
previously, a combined global turnover of the Parties in excess of EUR
500m is also required. The substantial increase of the domestic thresholds
will lead to a significant decrease of merger control filings in Germany
(some experts predict a decrease by 30-40%). Thus, less burden in many
M&A transactions but more time and resources for the Bundeskartellamt
to monitor and investigate other market behavior.

Competition in Auto Sector

CCI dismisses unfair business practices complaint
against four credit rating agencies {link}
Competition Commission of India (CCI) on Tuesday dismissed a complaint
alleging that Crisil Ltd, India Ratings and Research Pvt Ltd, Care Ratings
Ltd and Icra Ltd indulged in unfair business practices. he informant,
Brickwork Ratings, alleged that the opposite parties -- Crisil, India Ratings
and Research, Care Ratings and Icra -- contravened the provisions of the
Competition Act by means of collusive bidding and bid-rigging, and also
indulged in below cost predatory pricing.
After taking into consideration the submission of various parties, the
Commission said that there exists "no prima facie case" of contravention
of the provisions of the Competition Act. CCI noted that there are certain
other allegations about the opposite parties indulging in mala fide and
illegal conduct."In the opinion of the Commission, such allegations made
by the informant are too broad and general in nature and do not raise any
competition concern," CCI said.

Auto companies wary of price hikes despite surge

in input costs {link 1, link2}
Maruti Suzuki, Tata Motors and Hyundai, which collectively promote 4 out
of 5 automobiles domestically, are but to take a name on price will
increase in 2021, though a call is probably going towards the top of this
month. India’s greatest automakers are but to take a name on the
quantum of price will increase they’ll tackle their standard fashions in the
aftermath of important input value pressures, with the mass-market chief
Maruti Suzuki launching a ‘price protection scheme’ to provide its
automobiles at previous costs to prospects. Carmakers have confronted
elevated pricing pressures as a result of BS-VI emission conversion,
security rules and rising input costs.

Competition in Telecom / OTT

Competition in Energy

India’s CCI OKs Adani Green Energy Deal {link}

CCI gave nod to acquisition of 100% equity interest and joint control in
Virtusa Corporation by Baring and other investors.

The transaction involves acquisition of 100% equity interest and joint

control in Virtusa by an entity wholly-owned by funds affiliated with
Baring Private Equity Asia, Austin HoldCo, and co-investors Atago
Investment (GIC Investor) and CPP Investment Board Private Holdings
(CPPIB)

Steel Industry
In a case filed by Arrdy Engineering Innovations Pvt. Ltd., a competitor of
Heraeus Group, CCI has dismissed allegations of cartelization and abuse
of dominance against Heraeus Group and other entities engaged in
supplies/services to steel industry for measurement, monitoring of
temperature, oxygen activity, chemical composition, etc.

It was contended that Heraeus Group has a strategy of acquiring smaller

competitors in the industry and it has acquired a dominant position in the
market and exercises it to impose unfair obligations on the buyers of its
products/services such as exclusive purchasing. Further, it was contended
that Heraeus Group has indulged in predatory pricing to exclude
competitors from the market.

The CCI noted that the informant has failed to specify any of the products
which form part of the market. Further, mere acquisition of competitors
does not amount to abuse of dominance.

On account of the contentions raised, the CCI closed the case at the
prima-facie