Tag: antitrust

Google Withdraws SC Challenge to NCLAT’s Lack of Relief on CCI Directions

The NCLAT had refused to grant Google interim relief and asked it to deposit 10% of the total penalty of Rs 1,337.76 crore penalty with the CCI. 

New Delhi: Google has withdrawn its Supreme Court appeal against the National Company Law Appellate Tribunal order that refused interim relief to the company when it came to complying with directions of the Competition Commission of India on alleged attempts to dominate the market with its Play Store.

The decision to withdraw comes as the NCLAT is already hearing the matter. An apex court bench headed by Justice D.Y. Chandrachud announced on April 17 that the appeals stands dismissed.

The CCI has issued two rulings against Google, both imposing huge fines on the tech company. In October 2022, the CCI had penalised Google Rs 936 crore for restricting app developers from using any third party billing or payment processing services when inside the Google Play Store. It also issued a slew of directions.

Business Standard has reported that in its judgement, CCI marked Google’s policies on the mandatory use of Google Play Billing System (GPBS) for paid apps and in-app purchases as “an unfair condition on app developers.”

In January, Google appealed to both the Supreme Court and the NCLAT against the order. The latter refused to grant Google interim relief and asked it to deposit 10% of the total penalty of Rs 1,337.76 crore penalty with the CCI.

On March 29, NCLAT had upheld the penalty the CCI had imposed on Google.

It had, however, quashed directives that had to do with pre-installed Google apps on Android devices and also forced it to allow individual app store developers to distribute their app store through the Google Play Store.

The NCLAT is expected to hear the matter this week and has transferred the case to the chairperson’s court, a person familiar with the matter told Business Standard.

NCLAT Admits Google’s Challenge to Antitrust Finding, Asks Company to Pay 10% of Fine Now

Google had alleged that the Competition Commission of India’s investigation unit “copy-pasted extensively from a European Commission decision, deploying evidence from Europe that was not examined in India”.

New Delhi: Challenging a fine imposed by the Competition Commission of India (CCI) for alleged abuse of its dominant position in multiple markets in the Android Mobile device ecosystem, Google claimed that the order copied parts of a European ruling, “deploying evidence … that was not examined in India”.

On Wednesday, the National Company Law Appellate Tribunal agreed to hear Google’s appeal to the antitrust ruling but refused to block the order in the interim. “We are of opinion that at the moment given the voluminous nature of the appeal, there is no need to pass any interim order,” the two-member tribunal panel said, according to Reuters.

For now, NCLAT has asked Google to pay 10% of the Rs 1,337.76-crore penalty imposed on the tech giant by CCI, the news agency PTI reported.

According to a Reuters report, the US firm has argued that the decision – which imposed a fine of nearly Rs 1,338 crore along with a cease and desist order – should be quashed. The news agency said that Google, in its filing to the National Company Law Appellate Tribunal (NCLAT), said the CCI’s investigation unit “copy-pasted extensively from a European Commission decision, deploying evidence from Europe that was not examined in India”.

According to the report, the filing says, “‘There are more than 50 instances of copypasting’, in some cases ‘word-for-word’, and the watchdog erroneously dismissed the issue”.

“The Commission failed to conduct an impartial, balanced, and legally sound investigation … Google’s mobile app distribution practices are pro-competitive and not unfair/ exclusionary.”

The European Commission in a 2018 ruling fined Google a record 4.1 billion euros for allegedly imposing “unlawful restrictions on Android mobile device makers”.

In a statement, Google said it decided to appeal the CCI’s decision because “it presents a major setback for our Indian users and businesses” but did not mention allegations of copy-pasting.

The CCI issued two rulings against Google, imposing huge fines in both cases. In the ruling that Google has now challenged before the NCLAT, the CCI held in October that Google’s licensing of its Play Store “shall not be linked with the requirement of pre-installing” Google search services, the Chrome browser, YouTube or any other Google applications.

According to Reuters, the appeal alleges that though the CCI found antitrust infringements related to the Google search app, Chrome browser and YouTube, its order “extends beyond” that.

Meanwhile, the Economic Times quoted a “person familiar with the matter” as saying that Google was “optimistic that the NCLAT will take into account the challenge Android stakeholders will face if a stay is not granted, pending the outcome of the appeal”.

In the second ruling, Google was fined Rs 936 crore for restricting app developers from using third-party billing or payment processing services in India. The tech giant has appealed this antitrust decision too but it is yet to be heard.

Note: This article was first published on January 3, 2022 and updated on January 4 with the tribunal’s decision.

India Orders Google To Allow Third-Party Payments, Slaps Another Fine

The US giant was fined Rs 936 crore ($113 million) by the Competition Commission of India for anti-competitive practices.

New Delhi: Alphabet Inc’s Google should not restrict app developers from using third-party billing or payment processing services in India, the country’s antitrust body said on Tuesday, as it fined the US giant Rs 936 crore ($113 million) for anti-competitive practices.

The Competition Commission of India (CCI) said Google used its “dominant position” to force app developers to use its in-app payment system, noting the sale of in-app digital goods is a key means for developers to monetise their work.

The CCI’s move is the latest setback for Google in one of its priority markets, where it was fined another Rs 1,338 crore ($162 million) by the watchdog last Thursday for anti-competitive practices related to its Android operating system, and was asked to change its approach to its Android platform.

Google did not respond to a request for comment. The US giant can appeal the orders in an Indian tribunal.

Other than the fine, Google was asked to adopt 8 remedies or operations adjustments within three months, including not restricting “app developers from using any third-party billing/ payment processing services, either for in-app purchases or for purchasing apps,” the 199-page CCI order said.

Google should ensure complete transparency in communicating with app developers and details about service fees charged, the CCI order added.

The order would come as a major relief for Indian startups and smaller companies that have long objected to Google’s policy of mandatorily imposing use of its own payments system on app developers.

The investigation into Google’s payment ecosystem was started in 2020, after an antitrust case was filed against Google. The watchdog kept the identity of the complainant confidential on his request.

Naval Chopra, an antitrust partner at India’s Shardul Amarchand law firm which represented that complainant, told Reuters Tuesday that CCI’s order will help ensure healthy competition and reduce costs for app developers.

“The CCI order directing Google to allow alternate payment processing systems will remove the artificial barrier that Google had erected,” Chopra said, declining to disclose the name of the complainant for whom he had filed the case.

The search engine giant is also facing a separate probe into its business conduct in the Indian smart TV market.

It had called CCI’s Thursday move “a major setback for Indian consumers and businesses”, adding it will review the order and decide next steps.

Google has faced criticism globally, including in South Korea, for mandating software developers using its app store to use a proprietary in-app payment system that charge commissions of up to 30% on purchases made within an app. Of late, Google has begun to allow alternative payment systems in more countries.

Google’s Android operating system powers 97% of India’s 600 million smartphones, according to Counterpoint Research.

(Reuters)

CCI Probes Debt Trustee Units of SBI, Axis, IDBI on Suspected Fee Cartel

CCI in a confidential December order had said the Trustees Association of India – a body where the trio are founding members – last year hiked the fee for assisting firms raising debt, thereby hurting competition.

New Delhi: The Competition Commission of India (CCI) is investigating the trustee units of State Bank of India, Axis Bank and IDBI Bank for suspected collusion on fees, triggering a lawsuit by a group representing them, documents seen by Reuters showed.

Indian regulations mandate that companies raising debt appoint a so-called “debenture trustee” to protect the interests of investors. The trustees charge a fee from the companies issuing the debt and make independent due-diligence checks on them.

The three under investigation – SBICAP Trustee Company, Axis Trustee and IDBI Trusteeship – are among the leaders in the business in India overseeing hundreds of billions of dollars by rendering trustee services for not just debt securities, but also real estate and other investment funds.

The Competition Commission of India (CCI) in a confidential December order stated the Trustees Association of India – a body where the trio are founding members – last year “substantially” increased the fee for assisting companies raising debt and prevented members from going below a floor price, thereby hurting competition.

The association has launched a court challenge in Mumbai that seeks to quash the antitrust investigation directive it has termed “illegal” and “capricious”, according to court filings. The lawsuit will be heard on Thursday.

The antitrust probe and the impending court hearing, details of which have not been previously reported, could have ramifications on India‘s nearly $500 billion corporate debt market by altering costs and affecting the way trustees operate.

A finding of cartelisation could lead to a fine of up to three times the profit in each year the fee was fixed by the trustees, or 10% of annual revenue for the period of violation, whichever is more.

SBICAP Trustee and IDBI Trusteeship didn’t respond to requests for comment. Axis Trustee, which is listed as President of the Trustee Association in documents, also didn’t respond.

The CCI, which does not publicly disclose its cartel probes that are underway, did not respond to an email seeking comment.

Also read: Interview: ‘Banks Need to Be Sensitised on MSME Lending to Meet $5-Trillion Economy Mark’

Complaint by borrower

The antitrust case was triggered by a complaint from Indian gold financing company Muthoot Finance. When it wanted to raise debt in August last year, Muthoot received a costing proposal which was 300% higher than previous rates.

The documents showed that when Muthoot protested, IDBI said in an August email “the new pricing structure is decided by the Trustee Association”, adding that “any deviation by us in quoting the price would lead to adverse repercussion on us”.

The CCI, while ordering its investigation, noted: “Such collective decision making by the association … affects competition in the markets.”

In February it asked the trustee association to submit their meeting records and explain its role in fixing a minimum fee structure, one document showed.

The trustee association has defended itself in the court filings by saying the higher fee was justified as their cost burden had gone up over the years due to enhanced regulatory compliance requirements.

It said it had informed the market regulator SEBI last year that the pricing structure will be decided by trustees, but it “will not be below the benchmark floor price”.

The group said that the matter, by law, can only be investigated by a “specialised sectoral regulator”, in this case SEBI.

SEBI, already “provides enough checks and balances to deal with any price rigging (cartelisation),” it argued.

Before approaching the antitrust body, Muthoot also lodged a complaint against the trustees with SEBI, which is still being reviewed, the documents stated.

SEBI and Muthoot did not respond to Reuters queries.

(Reuters)

Apple Hit with Antitrust Case in India over in-App Payments Issues

The allegations are similar to a case Apple faces in the EU, where regulators last year started a probe into Apple’s imposition of an in-app fee of 30% for distribution of paid digital content and other restrictions.

New Delhi: Apple Inc is facing an antitrust challenge in India for allegedly abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system, according to a source and documents seen by Reuters.

The allegations are similar to a case Apple faces in the European Union, where regulators last year started an investigation into Apple’s imposition of an in-app fee of 30% for distribution of paid digital content and other restrictions.

The Indian case was filed by a little-known, non-profit group which argues Apple’s fee of up to 30% hurts competition by raising costs for app developers and customers, while also acting as a barrier to market entry.

“The existence of the 30% commission means that some app developers will never make it to the market… This could also result in consumer harm,” said the filing, which has been seen by Reuters.

Unlike Indian court cases, filings and details of cases reviewed by the Competition Commission of India (CCI) are not made public. Apple and the CCI did not respond to a request for comment.

In the coming weeks, the CCI will review the case and could order its investigations arm to conduct a wider probe, or dismiss it altogether if it finds no merit in it, said a source familiar with the matter.

“There are high chances that an investigation can be ordered, also because the EU has been probing this,” said the person, who declined to be identified as the case details are not public.

The complainant, non-profit ‘Together We Fight Society’ which is based in Rajasthan, told Reuters in a statement it filed the case in the interest of protecting Indian consumers and startups.

In India, though Apple’s iOS powered just about 2% of 520 million smartphones by end-2020 – with the rest using Android – Counterpoint Research says the US firm’s smartphone base in the country has more than doubled in the last five years.

The Apple case in India comes just as South Korea’s parliament this week approved a Bill that bans major app store operators like Alphabet Inc’s Google and Apple from forcing software developers to use their payment systems.

Also read: India Will Not Be Able to Ignore the Threat of Tech and Data Oligopolies for Long

“Middleman in transactions”

Companies like Apple and Google say their fee covers the security and marketing benefits their app stores provide, but many companies disagree.

Last year, after Indian startups publicly voiced concern over a similar in-app payments fee charged by Google, the CCI ordered an investigation into it as part of a broader antitrust probe into the company. That investigation is ongoing.

The antitrust case against Apple also alleges that its restrictions on how developers communicate with users to offer payment solutions are anti-competitive, and also hurt the country’s payment processors who offer services at lower charges in the range of 1-5%.

Apple has hurt competitors by restricting developers from informing users of alternative purchasing possibilities, thereby harming “app developers’ relationship with their customers by inserting itself as middleman in every in-app transaction,” the filing added.

In recent weeks, Apple has loosened some of the restrictions for developers globally, like allowing them to use communications – such as email – to share information about payment alternatives outside of their iOS app.

And on Wednesday, it said it would allow some apps to provide customers an in-app link to bypass Apple’s purchase system, though the US firm retained a ban on allowing other forms of payment options inside apps.

Gautam Shahi, a competition law partner at Indian law firm Dua Associates, said that even if companies change their behaviour after an antitrust case in filed, the CCI still looks at past conduct.

“The CCI will look at recent years to see if the law was violated and if consumers and competition were harmed,” said Shahi.

The CCI has plans to speed up all cases involving big technology firms such as Amazon and Google by deploying additional officers and working to more stringent internal deadlines, Reuters reported in June.

(Reuters)

Supreme Court Refuses to Stay Antitrust Probe Against Walmart, Flipkart

The Competition Commission of India ordered the investigation against the companies last year for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competition.

New Delhi: The Supreme Court ruled on Monday that antitrust investigations into business practices of Amazon.com Inc and Walmart’s Flipkart must continue, in a setback for the two e-commerce giants who had urged the court to put them on hold.

The Competition Commission of India (CCI) ordered the investigation against the companies last year for allegedly promoting select sellers on their e-commerce platforms and using business practices that stifle competition.

The companies deny any wrongdoing and have mounted legal challenges in lower courts and at the Supreme Court against the investigation, saying the CCI did not have enough evidence to pursue the matter.

A three-judge Supreme Court bench, led by Chief Justice N.V. Ramana, said companies like Amazon and Flipkart should volunteer for such investigations.

“We expect organisations like Amazon and Flipkart, big organisations, they have to volunteer for inquiry and transparency. We expect that and you don’t even want (an) inquiry,” Justice Ramana told the court.

“You have to submit and inquiry has to be conducted.”

The decision is a major setback for both Amazon and Flipkart as the Supreme Court appeal was seen as the last legal recourse to block the CCI pressing on with its investigation.

The companies are also grappling with the prospects of tougher e-commerce regulations and investigations by the country’s financial-crime agency for alleged violation of foreign investment laws.

(Reuters)

Congressional Report Suggests Big Trouble for Big Tech if Biden Wins

The report from the antitrust panel of the House Judiciary Committee laid out a roadmap for the Democratic Party to put the brakes on the dominance of
Google, Apple, Amazon and Facebook.

Washington: A scathing report detailing abuses of market power by four top technology companies suggests a tough road ahead of new rules and stricter enforcement for Big Tech should Democratic presidential candidate Joe Biden win the White House.

Antitrust experts and congressional aides said the 449-page report from the antitrust panel of the House Judiciary Committee, released on Tuesday, lays out a roadmap for the Democratic Party to put the brakes on the dominance of Alphabet Inc’s Google, Apple Inc., Amazon.com Inc. and Facebook Inc.

The election on November 3, 2020, approaching fast and a new Congress scheduled to be sworn in in January, action on the report‘s recommendations this year is unlikely and no new legislative changes are imminent. However, the findings boost the chances for new laws in the future and will inform existing investigations against large technology companies by state attorneys general and agencies such as the Federal Trade Commission.

The report reflects the views of Democrats on the antitrust subcommittee in the Democratic-controlled House of Representatives. Republicans on the panel released two separate reports on the investigation.

US Representative David Cicilline, chairman of the House antitrust panel, told Reuters in an interview on Wednesday he thinks a Biden administration would be receptive to the report. “He (Biden) has talked about how Big Tech platforms abuse their power,” said Cicilline, a Rhode Island Democrat. “He recognizes that this sort of economic concentration undermines democracy.”

Sarah Miller, executive director of the American Economic Liberties Project, a Washington-based group focused on monopoly power, said the report “lays out the Democratic Party’s position on tech platforms and how antitrust laws need to be refined and strengthened.”

Also read: Antitrust Hearing: US Lawmakers Accuse Big Tech of Crushing Rivals

“The report has done a lot of work to set up where and why a Biden administration should act and how it should prioritize the recommendations in the report,” she added. Miller is one of the hundreds of members of the Biden campaign’s tech policy committee.

William Kovacic, a former chair of the Federal Trade Commission, warned that the companies will “pull out all the stops” in lobbying against the changes.

Earlier this month, Reuters reported how large tech companies including Amazon were cozying up to the Biden campaign with cash and connections.

Biden has previously said antitrust enforcement has not been strong and that tech firms deserve a hard look from the federal agencies that oversee the competition. He has stayed away from calling for the breakup of large technology companies, saying it would be premature to do so without a formal investigation.

The House report on Tuesday broadly recommended that companies should not both control and compete in related businesses, but stopped short of naming a specific company. Anti-monopoly experts and congressional aides said the report, which details Big Tech‘s abuses, has the potential to influence the thinking of Biden on the issue.

A spokesman for the Biden campaign did not immediately comment.

The antitrust panel will take up the majority report after the October recess for formal adoption and will have a vote on it, counsels for the committee said. The next step will be coming up with legislation to put the report‘s recommendations into action.

House panel chairman Cicilline also said in the interview he expects legislation tackling Big Tech‘s market power to be introduced in the current Congress and more bills to be introduced next year.

(Reuters)

Antitrust Hearing: US Lawmakers Accuse Big Tech of Crushing Rivals

Bezos escaped questioning for about an hour in what may have been a tech issue and was caught on screen reaching for what appeared to be a snack.

Washington: Google and Facebook took the sharpest jabs for alleged abuse of their market power from Democrats and Republicans on Wednesday in a much-anticipated congressional hearing that put four of the US’s most prominent tech CEOs in the hot seat.

Facebook Inc’s Mark Zuckerberg, Amazon.com Inc’s Jeff Bezos, Google owner Alphabet Inc’s Sundar Pichai and Apple Inc’s Tim Cook – whose companies have a combined market value of about $5 trillion – parried a range of accusations from lawmakers that they crippled smaller rivals in the quest for market share, via a videoconference hearing.

Though it was Bezos’ first congressional testimony, he appeared the least fazed. Cook drew fewer barbed questions than Bezos and handled them efficiently. Zuckerberg took the most damage, stumbling at times when confronted with internal emails.

Pichai, CEO of both Alphabet and Google, took the most heat from conservatives on the House of Representatives Judiciary Committee’s antitrust panel and looked the worse for it, as he repeatedly told lawmakers he would be happy to look into various situations and get back to them.

Unfortunately, the Big Tech hearing was decidedly low-tech. Bezos escaped questioning for about an hour in what may have been a tech issue and was caught on screen reaching for what appeared to be a snack.

Poor audio, flat-screen televisions switching off and chief executives appearing together as thumbnails on a large screen frustrated viewers and led to mockery of the virtual set-up on Twitter.

Lawmakers descended into shouting at points, with a pandemic twist. One lawmaker shouted: “Put your mask on!”

Amazon CEO Jeff Bezos testifies as U.S. Rep. Hank Johnson (D-Ga.), Facebook CEO Mark Zuckerberg, Google CEO Sundar Pichai and Apple CEO Tim Cook listen during a U.S. House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law hearing on “Online Platforms and Market Power” in this screengrab as the committee meets on Capitol Hill, in Washington, U.S. on July 29, 2020. U.S. House Judiciary Committee via Reuters

Representative David Cicilline, a Democrat and chair of the antitrust subcommittee, set the tone when he began by accusing Google of theft.

“Why does Google steal content from honest businesses?” he asked.

Cicilline alleged Google stole reviews from Yelp Inc and said Google threatened to delist Yelp from search results if it objected.

Pichai responded mildly that he would want to know the specifics of the accusation. “We conduct ourselves to the highest standards,” he added, disagreeing with the characterization that Google steals content to win users.

Also read: Is India Adequately Prepared to Regulate Big Tech?

Facebook’s Zuckerberg took a series of questions about the company’s purchase of Instagram in 2012 and whether it was acquired because it was a threat.

Zuckerberg responded that the deal had been reviewed by the Federal Trade Commission and that Instagram at the time was a tiny photo-sharing app rather than a social-media phenomenon. “People didn’t think of them competing with us in that space,” he said.

In one of the more notable exchanges, Representative Pramila Jayapal pushed Zuckerberg on whether Facebook had ever copied its competitors.

“We’ve certainly adapted features that others have led in,” he said.

“How many companies did Facebook end up copying?” she asked. “Is it less than five? Less than 50?”

“Congresswoman, I don’t know,” Zuckerberg said.

The hearing was the first time the four CEOs have appeared together before lawmakers.

Jayapal pressed Amazon’s Bezos on whether the company used data from third-party sellers in making sales decisions. An Amazon executive previously had denied the practice under oath and was contradicted by a news report.

Bezos answered cautiously that the company had a policy against such actions. “If we found that somebody violated it, we would take action against them,” he said.

Also read: How Digital Media Weaponised Ignorance During a Pandemic

On the Republican side, Representative Jim Jordan accused the companies of taking a long list of actions that he said showed they try to hamper conservatives from reaching their supporters.

“Big Tech is out to get conservatives,” he said.

Jordan’s allegations come after President Donald Trump, who has clashed with several of the biggest tech companies, on Wednesday threatened to take action against them with executive orders.

Jordan also pressed Pichai on whether Google would help former Vice President Joe Biden, the presumptive Democratic presidential nominee, win in November.

“We support both campaigns. We approach our work in a nonpartisan fashion,” Pichai responded.

Republican Representative Matt Gaetz pressed Facebook’s Zuckerberg on whether content moderators disadvantaged conservative content.

Zuckerberg said they were trained to be neutral. “We aim to be a platform for all ideas,” he said. “I certainly don’t want our platform to be run in such a way to have a … bias.”

‘Street fight’

Apple’s Cook rejected the notion there is nothing to stop his company from raising the commissions it charges in the App Store.

“I disagree strongly with that,” he said. “The competition for developers – they can write their apps for Android or Windows or Xbox or PlayStation. We have fierce competition at the developer side and the customer side, which is essentially so competitive I would describe it as a street fight.”

A detailed report with antitrust allegations against the four tech platforms and recommendations on how to tame their market power could be released by late summer or early fall by the committee, senior committee aides said.

(Reuters)

India Probe Finds SKF, Schaeffler, Tata Steel Units Colluded on Bearings Prices

The steep steel price volatility, the Competition Commission of India said, provided the companies an “incentive to collude”.

New Delhi: An Indian antitrust probe has found that units of Tata Steel Ltd, Sweden’s AB SKF and Germany’s Schaeffler AG colluded on the pricing of bearings, according to an investigation report seen by Reuters.

The Competition Commission of India (CCI) began an investigation in 2017 after receiving allegations of five companies colluding on bearings prices from 2009-2014 to pass higher raw material costs onto customers in the auto sector.

Bearings reduce friction in moving parts, helping smooth the operation of vehicles. India’s bearings market is dominated by SKF and Schaeffler and is worth $1.3 billion, showed data from ICRA Research.

CCI’s investigations arm, in a report dated May 6 which has not been made public, said it analysed company emails, call records and executive testimonies and concluded that SKF India Ltd, Schaeffler India Ltd, National Engineering Industries and Tata Steel’s bearings division contravened antitrust law by discussing and agreeing prices.

SKF, the world’s largest maker of ball-bearings, in a statement said it aided the investigation, and that “we dispute any claim of wrongdoing on the part of SKF”.

Schaeffler did not respond to a request for comment. Tata Steel and National Engineering Industries – part of Indian conglomerate CK Birla Group – declined to comment beyond saying the CCI proceedings were confidential.

Also Read: Reliance Communications Lenders Reject Resignation of Anil Ambani, Four Directors

The investigations arm said it found no evidence against the fifth firm, ABC Bearings, part of US firm Timken Co, the report showed. ABC Bearings declined to comment.

The report also showed the investigations arm considered the collusion lasted through the financial year to March 2011 but found no evidence to indicate when it actually ended.

The four firms, “through personal meetings of key persons, on two occasions shared the strategic information regarding their future efforts to seek price increase from” auto sector companies, the investigations arm said in its 106-page report.

The CCI did not respond to a Reuters request for comment. A person with direct knowledge of the matter said senior CCI officials are reviewing the report and that the antitrust body is able to dispute the findings of its investigation arm.

The CCI can fine firms up to three times the profit made in each year of wrongdoing or 10% of revenue, whichever is higher.

In 2014, European Union antitrust regulators fined SKF, Schaeffler and three Japanese auto parts makers $1.3 billion for taking part in a bearings cartel from 2004 through 2011.

Incentive to Collude

The investigation report showed the four companies controlled nearly 75% of the domestic bearings market in the period 2009-11 – a time when prices of steel, the key raw material in bearings, were fluctuating sharply.

The steep steel price volatility, the CCI’s investigation arm said, provided the companies an “incentive to collude”.

There was consensus among the firms “to seek price increase of 12% and settle at 6%” with tractor and automotive manufacturers. With motorbike makers, there was a consensus to seek a 10% price increase and settle at 4%, the report showed.

The investigation arm also said Schaeffler and National Engineering Industries told the CCI that employees had participated in discussions with competitors “mainly to seek coordinated price increase of bearings”. It did not elaborate on when the companies disclosed discussions to the CCI.

During the probe, ABC Bearings, SKF and Tata Steel’s bearings division told the CCI they had no evidence of such discussions, the report showed.

“The conduct of the parties has resulted in appreciable adverse effect on competition,” the CCI investigation arm said in the report. “The sharing of price information is particularly sensitive from the competition law perspective.”

(Reuters)

US Antitrust Authorities to Investigate Google And Facebook

The tech giants face growing scrutiny as authorities question how users’ data is leveraged to display ads.

Two groups of US state attorneys general announced antitrust investigations of Facebook and Google, on Friday, to probe whether the internet giants have unfairly leveraged their services to dominate the online advertising market.

With seven other states, New York and the District of Columbia will investigate “whether Facebook has stifled competition and put users at risk,” said Letitia James, New York Attorney General. “The largest social media platform in the world must follow the law,” James tweeted.

The other states attorneys general joining the action included Colorado, Florida, Iowa, Nebraska, North Carolina, Ohio and Tennessee.

Facebook’s vice president for state and local policy, Will Castleberry, said the company would work constructively alongside the authorities. “People have multiple choices for every one of the services we provide,” he said. “We understand that if we stop innovating, people can easily leave our platform. This underscores the competition we face, not only in the United States but around the globe.”

Second coalition targets Google

Another coalition of states, led by Texas and announced by the state’s attorney general, Ken Paxton, is set to launch an antitrust probe into “whether large tech companies have engaged in anti-competitive behaviour that stifled competition, restricted access, and harmed consumers.” The investigation will reportedly target Google in particular and will likely include up to 40 other states.

Google’s parent company, Alphabet Inc., said it had received a civil investigative demand from the US Department of Justice at the end of August requesting documents relating to previous antitrust investigations against it in the United States and elsewhere.

File Photo: A man poses with a magnifier in front of a Facebook logo on display in this illustration taken in Sarajevo, Bosnia and Herzegovina, December 16, 2015. Photo: Reuters/Dado Ruvic/Illustration

“We expect to receive in the future similar investigative demands from state attorneys general,” Alphabet said. The tech company confirmed that it would continue its cooperation with the Department of Justice.

Scrutiny from all sides

Earlier this year in June, the US Department of Justice announced a “review” of major online platforms to examine whether they have stifled innovation of diminished competition.

Facebook and Google are two of the largest tech companies in the world, with billions using their services. The internet giants target users for their personal data, which can contribute to and enhance the power of the companies. Regulators are exploring whether the firms used their market power to squeeze out competition.

Also read: Facebook Allows Users to Opt Out of Face Recognition, Discontinues ‘Tag Suggestions’

The probes mark a widening in the scope of scrutiny the tech giants are facing beyond federal and congressional investigations into their market dominance.

Facebook is currently facing a number of ongoing investigations and legal threats, including from the US Department of Justice, the US Federal Trade Commission, the Irish Data Protection Commission, and the US Congress.

The new probe “shows how unease with large tech companies is spreading beyond Congress and the federal government agencies to the states,” said Michael Carrier, professor of antitrust law at Rutgers University. “With each passing day, there are greater fears about these companies controlling our online lives.”

This article was first published in DW.