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 antitrust regulators to rule on Comcast, sky deal by June 15. EU antitrust regulators will rule on U.S. cable operator Comcast’s 22-billion-pound ($30 billion) bid for British pay-TV company Sky by June 15, the European Commission said on Tuesday. The world’s biggest entertainment company is competing with Rupert Murdoch’s Twenty-First Century Fox to win over Sky. Fox has run into various stumbling blocks since agreeing to a Sky takeover in December 2016.
Appeals Court Reinstates Challenge to Seattle Rideshare Law. A federal appeals court on Friday reinstated a challenge to Seattle’s first-in-the-nation law allowing drivers of ride-hailing companies such as Uber and Lyft to unionize. The city’s 2015 measure requires companies that hire or contract with drivers of taxis, for-hire transportation companies and app-based services to bargain with them on issues such as pay and working conditions if a majority show they want to be represented. A three-judge panel of the 9th U.S. Circuit Court of Appeals unanimously said the measure is subject to challenge under federal antitrust law, and it sent the case back to U.S. District Judge Robert Lasnik in Seattle to determine whether the measure is, in fact, impermissible.
Democratic lawmakers express ‘serious concerns’ about T-Mobile purchase of Sprint. Senators Amy Klobuchar, Elizabeth Warren and other Democratic lawmakers have expressed “serious concerns” about T-Mobile US, Inc.’s plan to buy rival Sprint Corp, focusing on the planned deal’s effect on lower-cost wireless plans, Klobuchar’s office said in a press statement. “T-Mobile and Sprint have led the way in offering wireless products and service options that are more appealing to lower-income consumers, including no contract plans, prepaid and no credit check plans, and unlimited text, voice, and data plans,” the lawmakers wrote. While AT&T and Verizon dominate the U.S. wireless market overall, T-Mobile is the most popular among customers who make less than $75,000 per year, and Sprint’s prepaid brand Boost counts 83 percent of its users in that income range, according to data from Kagan, S&P Global Market Intelligence data.
Microchip says can’t confirm reports on China approval of Microsemi deal. Microchip Technology Inc. said it cannot confirm media reports that the Chinese government has approved its $8.35 billion bid to buy Microsemi Corp. “We cannot confirm today’s report in the press that China’s MOFCOM has cleared the transaction,” the company told Reuters in an email. Microchip said it believes the deal review process is running smoothly, and it remained optimistic that it will shortly get clearance from China’s Ministry of Commerce (Mofcom). Mofcom approval is seen as the major hurdle for the deal, which has already received antitrust clearance in the United States.