The Antitrust Week In Review
Here are some of the developments in antitrust news this past week that we found interesting and are following.
EU says widespread use of geoblocking may breach antitrust rules. European Union antitrust regulators said on Thursday they may take action against online and electronic retailers restricting cross-border sales within the bloc but only on a case-by-case basis. Following a year-long investigation into the sector, the European Commission preliminary report showed that geoblocking, where retailers prevent online shoppers in some countries buying cheaper products or services abroad, is widespread, due in part to agreements between retailers and content providers. The so-called e-commerce sector inquiry is part of the European Commission’s campaign to overhaul the 28-country bloc’s digital market in a bid to boost growth and catch up with the United States and Asia.
Judge Rejects Justice Department Ruling on Music Licensing. A federal judge on Friday rejected a recent Justice Department ruling on music licensing, in a move that was immediately hailed by the music industry as a major victory. In his decision, Judge Louis L. Stanton of the United States District Court in Manhattan said the Justice Department erred last month when it issued a detailed interpretation of a regulatory document known as a consent decree. The document has long governed Broadcast Music, Inc. (BMI), a licensing agency that collects money whenever songs are publicly performed, including on the radio, on streaming services and in public places like restaurants and retail stores.
Bayer’s Monsanto acquisition to face politically charged scrutiny. As the global agricultural sector races to consolidate, Bayer AG’s $66 billion all-cash deal to acquire Monsanto Co will test growing political and consumer unease in the United States and abroad over the future of food production. Bayer’s pesticide-focused agricultural business has few overlaps with Monsanto’s dominant seed franchise, according to the companies’ executives. Still, marrying two of the world’s top farm suppliers at a time when rivals are also merging is fueling concern over reduced competition in the $100 billion global market.
Johnson & Johnson to Buy Abbott’s Vision Unit for $4.33B. Johnson & Johnson said Friday that it is paying more than $4.3 billion in cash to buy the eye health unit of Abbott Laboratories as it seeks to boost its vision business. The unit, called Abbott Medical Optics, makes lasers and other equipment used for cataract surgeries and laser vision correction procedures. It also makes eye drops and cleaners for contact lenses. The deal is subject to antitrust clearance and is expected to close in the first quarter of 2017.
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