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Showing posts from July, 2011

For the Italian Competition Authority toxicology studies are essential facilities (Sapec Agro/Bayer-Helm)

The decision of the Italian Competition Authority (ICA) in the Sapec Agro/Bayer-Helm (Case A415) is a rare case of Article 102 TFEU condemnation. Bayer Cropscience (BCS) was accused for having refused to grant some of its competitors access to toxicology studies in its possession on fosetyl. The BCS had as effects its competitors having to exit the market for the plant health products based on fosetyl. Indeed, the regulatory regime in force subjected the granting of market authorization for plant health products based on fosetyl to the production of toxicology studies on the effects of this substance. The ICA rejected the commitments offered by BCS and found that BCS had to grant its competitors access to the studies, because the studies constituted essential facilities. Therefore the ICA fined € 5.124.359,00 BCS for abuse of dominant position in the market for the production and commercialization of fosetyl-based fungicides. The most noteworthy aspect of Sapec Agro/Bayer-Helm i

The counterfactual in the Stena/DFDS merger: an extensive application of the exiting firm scenario

The UK Competition Commission (CC) has unconditionally cleared the Stena/DFDS merger. This relevant market affected by the transaction was the market for ferry services between Ireland and Great Britain. At the moment of the merger it was a declining market with all the ferry operators losing market shares because of the recession. So there existed an oversupply of capacity. The merger pursues the reorganization of the ferry services provided by the parties with Stena replacing DFDS on Liverpool-Belfast and Heysham-Belfast routes and closing two Dublin-base routes. Moreover, at the same time of the merger, Stena closed its Fleetwood-Larne route. What is of relevance in the CC decision is the counterfactual it identified. Counterfactual – what would happen if the merger does not take place- is an important step to ascertain the competition impact of the merger, and it should be carefully identified. According to the Merger Assessment Guidelines , one of the cases in which it is po