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Recent Competition Law Developments in the United States and Canada. Sandeep Vaheesan Special Counsel American Antitrust Institute. November 19, 2013. U.S. Department of Justice Draws a Line in the Sand on Mergers. Anheuser-Busch InBev/Modelo
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Recent Competition Law Developments in the United States and Canada Sandeep Vaheesan Special Counsel American Antitrust Institute November 19, 2013
U.S. Department of Justice Draws a Line in the Sand on Mergers • Anheuser-Busch InBev/Modelo • World’s largest brewer proposed to purchase Mexico’s largest brewer • American Airlines/US Airways • Merger between two of the five largest airlines in the U.S. • DOJ filed suit to block both deals in industries with high concentration and history of consolidation • Remedies determine ultimate success of merger cases
Federal Trade Commission: Activism and Restraint • FTC v. Actavis • Pay-for-delay pharmaceutical settlement subject to antitrust scrutiny under rule of reason • Presumptively illegal standard rejected • FTC expected to continue enforcement against these anticompetitive deals • No Action Against Office Depot/OfficeMax • Market for office supplies broadly defined • Amazon and Walmart found to be competitors of office supply superstores • How to define product markets with rise of internet retailers?
Supreme Court’s War on Private Enforcement Continues • Comcast v. Behrend • Heightened standards for class certification • Plaintiffs will need to introduce more evidence in early stage of litigation • American Express v. Italian Colors • Individual arbitration clauses in consumer contracts will almost always be enforceable • Major blow for class actions in general • Congress could, in theory, reverse this ruling
Canadian Competition Law Moves in a Pro-Consumer Direction • Standing for indirect purchasers • Supreme Court of Canada ruled that indirect purchasers have standing to bring antitrust suits • Decision departs from U.S. federal law under which indirect purchasers do not have standing (Illinois Brick rule) • Tervita/Complete Environmental • Operator of only hazardous waste landfill in Northeastern British Columbia acquired rival that had obtained permit to open competing landfill • First challenge under “pure prevention of competition” statutory provision • Analogous to potential competition doctrine in U.S. law