CAT dismisses Epic claim against Apple but accepts claim against Google

 

CAT dismisses Epic claim against Apple but accepts claim against Google

Epic seeks declarations that Apple and Google breached EU and UK competition law by removing Epic's game "Fortnite" from, respectively, the Apple App Store and the Google Play Store.

In the Apple litigation, the CAT concluded that there was no UK "anchor defendant" and that the USA was the appropriate forum for this dispute.

The CAT granted permission for service out of the jurisdiction on Alphabet Inc and Google LLC in relation to part of the claims. The CAT found that there are anchor defendants (Irish companies) and that the US companies are proper and necessary parties to these claims.

Applications for permission to serve out of the jurisdiction are likely to increase following Brexit.  The CAT has recognised that loss of sales and market share, as well reputational damage are relevant damage for the purposes of the tort jurisdictional gateway.

Epic Games Inc and others v Apple Inc and Apple UK Limited and Epic Games Inc v Alphabet Inc and Google LLC and others [2021] CAT 4

Penrose Report calls for overhaul of UK competition regime

The much awaited Penrose report makes sweeping recommendations to strengthen UK competition and consumer protection.
This takes place against the backdrop of challenges presented by Brexit, COVID-19 and digitisation.
Among the key recommendations are that the CMA should become a "micro-economic sibling" for the Bank of England’s public macro-economic role. This role would see the CMA publishing an annual 'State of Competition and Consumer Detriment' report.
The Report urges that penalties for non-compliance with investigations should be strengthened and the CMA should be allowed to accept legally-binding undertakings at any stage in a market study, market investigation, or Phase 1 or 2 merger review.
It remains to be seen which measures will be implemented. Some depend on further research and reports to be undertaken and could create even more uncertainty at a time when business seeks clarity.
https://lnkd.in/g-UzPtC

Government proposes shake-up to competition rules in the NHS

 

Government proposes shake-up to competition rules in the NHS

 

The Department of Health and Social Care has published a White Paper setting out legislative proposals for a Health and Care Bill. This will remove the changes to the competition rules that were introduced by the Health and Social Care Act 2012.

The government intends to remove NHS Improvement’s competition functions (concurrent competition powers) and its general duty to prevent anti-competitive behaviour.

It will also remove the role of the CMA in mergers involving NHS foundation trusts. The CMA will also no longer have a role in relation to contested licence conditions or National Tariff provisions.

The government also intends to revoke the Procurement, Patient Choice and Competition Regulations 2013, which govern the commissioning of health care services for the purposes of the NHS.

Many of the proposals build on the NHS’s recommendations in its Long Term Plan.  The outbreak of COVID-19 has raised further questions about sustainability.  There are currently increased costs for the delivery of each patient episode (outpatient, diagnostics, surgery) due to COVID-19 requirements for personal protective equipment, cleaning, additional theatre precautions etc. in order to reduce potential infection risks.  Who will pay for this?

 

https://www.gov.uk/government/publications/working-together-to-improve-health-and-social-care-for-all

European Commission accepts commitments by Aspen to reduce prices for six off-patent cancer medicines by 73%

 

European Commission accepts commitments by Aspen to reduce prices for six off-patent cancer medicines by 73%

 

Following commitments accepted by the Commission to resolve its abuse of dominance investigation under Article 102 TFEU, Aspen will reduce its prices across Europe for the six cancer medicines by, on average, 73%.

The reductions are on average below 2012 prices before the increases started.

The outcome in this case is consistent with the Commission's Pharmaceutical Strategy for Europe.  This patient-centred strategy seeks to safeguard access to medicines whilst at the same time promoting competition.

This case is one of many similar investigations in Europe in the pharmaceutical sector. It shows that the competition authorities are ready and willing to engage with the vexed question of excess pricing.  https://ec.europa.eu/commission/presscorner/detail/en/ip_21_524

CMA publishes remedies breach guidance

 

CMA publishes remedies breach guidance

 

The Competition and Markets Authority warns that companies should report breaches of commitments in merger and competition cases “as soon as reasonably possible”.

It warns that companies should not seek to remedy violations without first approaching the authority.

The CMA has published guidance setting out the procedures to follow in such cases and  how the CMA will investigate breaches.

The CMA can seek a Court order requiring compliance with a commitment.  The Court may also impose fines and individuals face prison sentences for up to two years for failing to comply.

https://files.lbr.cloud/public/2021-02/Merger%20and%20Market%20Remedies%20Guidance%20-%2029%20January%202021.pdf?aqodHzNj7h8KHex1H38wT8XWPDcn8N15=