Two-minute Recap of Competition Law Matters Around the Globe – February 2024

Pfizer’s USD 93 million settlement for Lipitor pay-for-delay scheme

Pfizer has reached a USD 93 million settlement with drug purchasers who accused Pfizer of paying Ranbaxy to delay a generic version of the cholesterol drug Lipitor and therefore illegally extending its patent rights over Lipitor. Pfizer denies wrongdoing but has agreed to the settlement to avoid further litigation after a decade long legal battle. The settlement requires court approval and applies only to Pfizer, not Ranbaxy, as the lawsuit against Ranbaxy continues. While Pfizer denies the accusations, the lawsuit alleged they used various tactics to maintain control over Lipitor's market, including paying Ranbaxy to delay their generic version and initiating lawsuits to discourage parties from producing a generic version of the drug.

EC’s first in-depth investigation under the new Foreign Subsidies Regulation

The European Commission (“EC”) launched an investigation into a Chinese train manufacturer, CRRC Qingdao Sifang Locomotive, for potentially receiving unfair foreign subsidies. This is the first investigation under the EU's new Foreign Subsidies Regulation. The investigation concerns a public contract in Bulgaria for electric trains. EC believes CRRC may have been granted subsidies that gave them an unfair advantage in bidding for the contract. At the end of the investigation the EC may (i) accept CRRC’s commitments to remedy the distortion in the market, if any, (ii) prevent them from winning the contract or (iii) issue a no-objection decision and approve the bid. A final decision is expected by 2 July 2024.

Arçelik/Whirlpool obtains provisional approval from UK’s CMA

The UK's Competition and Markets Authority (“CMA”) provisionally approved the joint venture between domestic appliance giants Whirlpool and Arçelik, despite launching a Phase II probe with the concerns that competition may be harmed in the markets for the supply of washing machines, tumble dryers, dishwashers and cooking appliances. While Whirlpool and Arçelik are major players in specific appliance categories, the CMA found they would not have a dominant position due to competition from various established and emerging brands. This decision differs from the South African agency’s approach as they approved the transaction with undisclosed conditions. CMA’s final decision is expected by 26 March 2024.

The Gatekeeper status of TikTok has not changed

The Court of Justice of the European Union (“CJEU”) has turned down ByteDance's appeal to block the EC’s decision to classify itself, as the owner of TikTok, as a gatekeeper under the Digital Markets Act (“DMA”). As a result, TikTok has to comply with the obligations arising from the DMA.

Petrochemical companies in Japan granted public support for sustainability

Japan's Fair-Trade Commission has granted its first public clearance under sustainability guidelines by approving collaboration among five petrochemical companies, namely Idemitsu Kosan, Tosoh, Tokuyama, Nippon Steel Stainless Steel Corporation and Zeon for a carbon-neutral initiative. Last August, the companies have sought approval for their joint efforts to achieve carbon neutrality by 2050 in a petrochemical complex located in southern Japan. As part of the collaborative agreement, the companies pledged to buy eco-friendly gas and biochemicals.

FTC has filed a lawsuit to prevent the USD 24.6 billion Albertsons/Kroger deal

US Federal Trade Commission (“FTC”) is suing with the aim to prevent the planned merger between Kroger and Albertsons, which is the largest supermarket merger in US history. The FTC expresses reservations that the merger might negatively impact consumers and workers as well as the competition within the market as a whole. The proposed divestiture for several hundred stores and other assets has been deemed insufficient to resolve the concerns arising from the transaction.

Historic penalty for Disney in Chile

The Walt Disney Company has been fined EUR 2.1 million by Chile's Tribunal for the Defence of Free Competition for providing inaccurate information during the merger notification process for its acquisition of 21st Century Fox. This is the first time a penalty has been imposed for providing false or deceptive information within the scope of a merger notification in Chile.

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