Antitrust Law Daily Wrap Up, WORTH NOTING—Other Antitrust and Trade Regulation developments, (Feb 7, 2025)

By WK Editorial Staff

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

ANTITRUST—S.D.N.Y.: Finding good cause, the federal district court in New York City entered a stipulated protective order to protect confidential information and facilitate discovery in the litigation brought by the U.S. Justice Department to block the proposed $570 million merger between corporate travel agencies American Express Global Business Travel (Amex GBT) and CWT Holdings, LLC (CWT). The two companies both specialize in managing corporate travel and event planning for large businesses. The DOJ’s complaint urged the court that: "Amex GBT’s proposed acquisition of CWT threatens to substantially lessen competition and harm customers of business travel management services in violation of Section 7 of the Clayton Act, 15 U.S.C. § 18. Accordingly, it should be enjoined.” The order provides procedures for the designation of confidential and highly confidential information and for providing notice of those confidentiality designations to the parties (U.S. v. Global Business Travel Group, Inc., No. 1:25-cv-00215-VM (S.D.N.Y. Feb. 3, 2025)).

ANTITRUST NEWS: The Chinese State Administration for Market Regulation has initiated an investigation into Google for alleged violations of the Anti-Monopoly Law of the People's Republic of China. There are also reports that China is considering antitrust charges against Apple. The news follows the imposition of tariffs on Chinese goods.

ANTITRUST NEWS: Five contractors in Brandon, Manitoba, pleaded guilty before the Manitoba Court of King’s Bench for conspiring to divide up social housing refurbishment contracts among themselves, the Canada Competition Bureau announced. They each pleaded guilty to one count of conspiracy under section 45 of the Competition Act. They were ordered to pay a combined amount of $196,000 in fines. Between December 2011 and February 2016, the five conspiring contractors manipulated 54 social housing contracts awarded by the Manitoba Housing and Renewal Corporation, for a total value of approximately $3.5 million. Their scheme allowed them to determine in advance which one would obtain the public contract and to establish the price of the project funded by taxpayers.

ACQUISITIONS & MERGERS NEWS: The European Commission has approved the acquisition of sole control of substantially all of the Rehau automotive business entities (‘Rehau Automotive') by Atlas FRM LLC of the US. The transaction relates primarily to the automotive sector. The Commission concluded that the notified transaction would not raise competition concerns, given the companies' limited combined market position resulting from the proposed transaction. The notified transaction was examined under the simplified merger review procedure.

AGENCY NEWS: Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Dick Durbin (D-Ill.) announced the establishment, leadership and membership of Senate Judiciary Subcommittees for the 119th Congress. The Subcommittee on Antitrust, Competition Policy and Consumer Rights will be chaired by Sen. Mike Lee (R-Utah), with Sen. Cory Booker (D-N.J.) serving as Ranking Member. Marsha Blackburn (R-Tenn.) with Chair the Subcommittee on Privacy, Technology and the Law. Amy Klobuchar (D-Minn.) is the Ranking Member.

FRANCHISING & DISTRIBUTION—E.D. Mich.: Pizza restaurant franchisor Little Ceaser Enterprises and its affiliate (together the franchisor) were entitled to a default judgment declaring that two now terminated franchisees violated the terms of the parties’ franchise agreements. The Complaint alleged that the franchisees abandoned the two franchise restaurants, constituting good cause for termination of the agreement under its terms. Second, the Complaint alleged that the franchisees failed to pay required fees to Little Caesar and failed to pay the affiliate for ingredients, supplies, and equipment; these failures are also good cause to terminate the agreement due to default. The franchisees were deemed to have admitted to these well-pleaded allegations (though not to damages) by their default. The court found the liquidated damages provisions in the franchise agreements, stating that if a franchisee defaults before the end of the term, then the franchisee shall pay a lump sum of the average monthly royalty, advertising and technology fees for the last year “multiplied by the lesser of (i) thirty-six (36) months or (ii) the number of months then remaining in the then-current term of this Agreement,” enforceable under Michigan law. The liquidated damage figure of $402,123.06 was reasonable in relation to the injury suffered by the franchisor and neither unconscionable nor excessive, the court held. The franchisor was also generally entitled to recover attorney fees, costs, interest, and expenses for their pre-and post-settlement agreement default collection efforts, pursuant to a valid attorney fee provision and were ordered to submit an accounting of fees and costs (Little Caesar Enterprises, Inc. v. LC 715 Broadway, Inc., No. 2:23-cv-12892-NGE-EAS (E.D. Mich. Jan. 30, 2025)).

Attorneys: Alyssa Samberg, U.S. Department of Justice, for the U.S. Julia K. York (Skadden Arps Slate Meagher & Flom LLP) for Global Business Travel Group, Inc. Michael Murray (Paul Hastings LLP) for CWT Holdings, LLC. Larry J. Saylor (Miller, Canfield, Paddock and Stone, P.L.C.) for Little Caesar Enterprises, Inc.

Companies: Global Business Travel Group, Inc.; CWT Holdings, LLC; Little Caesar Enterprises, Inc.; LC 715 Broadway, Inc.; Rehau Automotive; Atlas FRM LLC; Google; Apple

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