The European Union has accused Microsoft of engaging in illegal bundling practices by tying its Teams chat app to its Office 365 and Microsoft 365 subscriptions. This is the first antitrust charge against Microsoft in the EU in 15 years and could lead to a hefty fine and changes to its software products.
The European Union has fined International Flavors & Fragrances (IFF) €15.9 million for obstructing a cartel probe after an employee deleted WhatsApp messages. The company deleted the messages after being notified of an inspection, but later helped recover the data. The EU’s antitrust regulator is investigating several fragrance companies, including IFF, for suspected price fixing.
In her book “The Everything War,” Dana Mattioli chronicles Amazon’s relentless pursuit of market dominance, alleging misuse of power and unethical behavior. She highlights the case of Diapers.com, which was forced to sell itself to Amazon after the e-commerce giant aggressively slashed prices. The book culmiates with the Federal Trade Commission’s lawsuit against Amazon, accusing it of operating an illegal monopoly. However, Mattioli’s account is criticized for lacking a “gotcha” moment and relying on hyperbolic language. Despite its flaws, the book raises important questions about antitrust laws and the need to reign in the power of corporate giants like Amazon.
In the ongoing antitrust trial against Alphabet’s Google, the US government will continue to present its case on Friday, focusing on allegations that the search engine giant abused its market dominance and engaged in illegal practices to maintain its position in search advertising. The government claims that Google’s business contracts harmed competition and that it manipulated ad auctions to increase prices without fear of harming its business.
Google has filed a response to Epic Games’ proposed remedies following the court’s determination that Google engaged in anticompetitive practices on its Play Store. Epic’s demands include access to the Play Store catalog for six years, the ability to distribute its own app store on Google Play without fees, and an end to agreements and penalties that favor Google’s services. Google asserts that these demands are overreaching, unnecessary, and harmful to user privacy and security. The judge’s upcoming decision will determine the concessions that app stores deemed monopolists must make to promote competition.
Professor Tim Wu, a renowned antitrust expert, urges Canada to take a bolder approach to blocking harmful corporate mergers. Emphasizing the importance of economic democracy, Wu highlights the need to move beyond consent decrees and towards outright merger blocks. Canada’s history of failing to block mergers has contributed to inflation and reduced consumer welfare, while the United States has made significant strides in strengthening its competition policies. Wu recommends adopting a structural presumption system and enhancing the Competition Bureau’s powers to remedy anti-competitive mergers. These changes would align Canada’s Competition Act with U.S. legislation and promote cross-border cooperation in merger reviews.
Tapestry’s proposed $57 per share acquisition of Capri Holdings has encountered opposition from the Federal Trade Commission (FTC), raising concerns about potential antitrust violations. The FTC argues that the merger would result in Tapestry’s dominance in the “accessible luxury” handbag market and negatively impact employees. However, Tapestry disputes these claims, maintaining that the market is competitive and the deal would not harm consumers or workers. The case is expected to proceed to court, with a judge assigned to oversee the proceedings. The outcome of the trial is uncertain, but analysts believe there is a 60% chance that the deal will be approved. Capri’s stock price currently reflects a 29% likelihood of a legal victory, offering potential investment opportunities with an estimated return of 22% if the merger is successful.
Spotify has faced rejection from Apple for an EU app update due to its refusal to agree to the terms of Apple’s Music Streaming Services Entitlement. By omitting a website link in its app, Spotify avoids the 27% commission that Apple charges for purchases referred by its platform. Despite this concession, Spotify maintains that Apple’s actions violate European law, calling on the European Commission to intervene.
The US Chamber of Commerce and other business groups have filed a lawsuit against the Federal Trade Commission (FTC) in an attempt to block a newly issued ban on noncompete clauses. The lawsuit argues that the FTC overstepped its authority and that Congress should decide whether noncompete clauses should be banned nationwide.
The FTC has defended its authority to ban noncompete clauses, citing sections 5 and 6(g) of the FTC Act. The FTC also maintains that noncompete clauses harm workers by suppressing wages, stifling innovation, and reducing competition.
The lawsuit comes one day after the FTC issued its rule banning noncompete clauses. The rule is scheduled to take effect in about four months, and it would render the vast majority of existing noncompetes unenforceable.
Federal regulators and legal experts are pushing for a significant overhaul of antitrust enforcement, making it increasingly difficult for Hollywood companies to engage in mergers and acquisitions. Concerns about the excessive power of digital giants like Google, Facebook, and Amazon are driving the new approach, which involves stricter guidelines and increased scrutiny of transactions. While Hollywood studios are eager to explore potential combinations, the hostile regulatory environment is putting a damper on their plans. This shift highlights the challenges of regulating the digital economy effectively, as antitrust laws designed to curb the excesses of the late 19th century industrialists may not be sufficient to address the unique dynamics of today’s data-driven landscape.
