Antitrust Law Daily Wrap Up, WORTH NOTING—Other Antitrust and Trade Regulation development, (Aug 19, 2016)

A periodic roundup of other items of interest to the Antitrust and Trade Regulation community:

ACQUISITIONS & MERGERS NEWS: Diebold, Incorporated and Wincor Nixdorf AG, both suppliers of automated teller machines (ATMs) to banks and independent ATM deployers, could face an in-depth merger investigation by the U.K. Competition and Markets Authority (CMA) unless the companies offer undertakings to address competition concerns, the CMA announced today. The companies also provide related software and maintenance services. In its initial investigation, the CMA has found that both companies compete closely in the supply of customer-operated ATMs in the United Kingdom. At present there is only one other credible competitor supplying such ATMs in the United Kingdom—NCR— and there is limited prospect of other companies entering the U.K. market in the near future. The CMA has therefore found that the merger could lead to a substantial lessening of competition in the supply of customer-operated ATMs in the United Kingdom. The transaction has been cleared by competition authorities in a number of other countries. However, the CMA considered the impact of the merger in the United Kingdom and notes that the competitive situation in the United Kingdom could differ from other countries, specifically in relation to the number of providers and the barriers facing other companies trying to enter the market. Diebold has until August 26 to offer proposals to resolve the competition concerns identified by the CMA.

ACQUISITIONS & MERGERS NEWS: VTech Holdings Ltd. could face an in-depth merger investigation over competition concerns arising from its completed merger with LeapFrog Enterprises Inc., according to a U.K. CMA announcement. VTech and LeapFrog are two of the three largest suppliers of toddler electronic learning toys and child laptops/tablets in the United Kingdom. The CMA’s initial investigation has found that the companies compete closely in supplying these products to retailers and there are few other competitors. The CMA also found that, in the absence of the merger, both companies would have been close competitors in the supply of child electronic reading systems, which involve the audio narration of an accompanying physical book. Presently, LeapFrog is the only one of the two companies supplying these systems. The CMA therefore believes that the merger could lead to a substantial lessening of competition in the market for these products which could lead to increased prices and a reduction in quality or choice for consumers. VTech has until August 25 to offer proposals to resolve the CMA’s competition concerns.

ANTITRUST NEWS: The Australian Competition and Consumer Commission (ACCC) is continuing to review the applications for authorization by the Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Bendigo and Adelaide Bank after deciding not to grant the banks’ request for interim authorization at this early stage of its assessment process, the ACCC announced today. The banks wish to engage in collective negotiation and boycott activities with Apple in relation to its e-commerce Apple Pay platform and with other third party wallet providers in Australia. Specifically, the banks, together with other participating card issuers, are seeking authorization to collectively negotiate and boycott on a range of issues. One of these issues relates to the banks’ ability to utilize Near Field Communication hardware on Apple devices to enable contactless payments to be made through the banks’ own digital wallets—applications that can allow consumers to tap and pay using their phone and can store other information, such as loyalty or membership cards. In deciding not to grant interim authorization, the ACCC took into account the potential for continuing effects on competition in the market, the extent of urgency for the request, any possible harm to the applicants or other parties if interim authorization is granted or denied, and possible public benefits and detriments.

Companies: Diebold, Inc.; Wincor Nixdorf AG; VTech Holdings Ltd.; LeapFrog Enterprises Inc.; Commonwealth Bank of Australia; Westpac Banking Corporation; National Australia Bank; Bendigo and Adelaide Bank

News: AcquisitionsMergers Antitrust