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Showing posts with the label competition act

Competition issues with distribution and agency agreements in India

  Competition issues with distribution and agency agreements in India Chadha & Co Regulation of the distribution relationship Competing products Are restrictions on the distribution of competing products in distribution agreements enforceable, either during the term of the relationship or afterwards? Indian courts have drawn a clear distinction between non-compete covenants after the term of the agreement and non-compete covenants post the term of an agreement. To determine enforceability of such covenants, the courts consider the question whether the covenant is or is not in restraint of trade. It is well established that the non-compete covenants operative during the period of a contract are generally enforceable if the restriction is reasonable in the context of the particular trade and business, and where the restriction is required to enhance the level of service to the customers and efficiently manage the sale of products. In a recent judgment of the Delhi High Court, whe...

Artificial Intelligence and Anti-trust: Trivago fined for bias pricing

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Cheap rooms? Probably not? Trivago’s top deals are hotels which pay the most Cordato Partners The Trivago website creates the impression that it quickly and easily identifies the cheapest available hotel room responding to a consumer’s search. Australia   January 31 2020 But is the impression a transparent comparison of rooms, or is it manipulated and false? The Federal Court of Australia has found that Trivago misled the public by promoting hotels as having cheapest rooms when it was true only 33.2% of the time. The Court will impose pecuniary penalties on Trivago for contravening the  Australian Consumer Law . The decision is  Australian Competition and Consumer Commission v Trivago N.V.  [2020] FCA 16  (20 January 2020) (Moshinsky J). In this article, we review the Court’s reasons as to how the Trivago website contravened the  Australian Consumer Law . The Trivago Business Model Trivago N.V. is a foreign company, incorporated in the Net...

The Emerging Need for Cybersecurity Diligence in M&A-Good read

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"The Emerging Need for Cybersecurity Diligence in M&A" April 19, 2017 | Skadden, Arps, Slate, Meagher & Flom LLP | Shilpi Gupta , Stuart D. Levi , William Ridgway Cybercrime has emerged as one of the foremost threats a company faces. As a result of a few keystrokes, a company may find its customers’ data sold on the dark web, its intellectual property in the hands of a competitor or its operations paralyzed by ransomware. It should come as little surprise, then, that cybersecurity has become a key risk factor in mergers and acquisitions. A 2016 survey by West Monroe Partners and Mergermarket found that 77 percent of top-level corporate executives and private equity partners reported that the importance of cybersecurity at M&A targets had increased significantly in recent years. Given this trend, executives and directors contemplating acquisitions should consider the following cyber-related issues when conducting due diligence. Key Considera...

Competition Tribunal weighs abuse of dominant position provision against privacy and copyright protection-Interesting Read

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Competition Tribunal weighs abuse of dominant position provision against privacy and copyright protection Newsletters November 14 2016 | Contributed by Smart & Biggar/Fetherstonhaugh Introduction The Competition Act aims to maintain and encourage competition, in part, to ensure that small and medium-sized enterprises have the opportunity to participate in the Canadian economy and to provide consumers with competitive prices and choices. The act includes provisions against abuse of dominant position, intended to prevent a dominant company from taking undue advantage of its position in the marketplace. Under these provisions, the commissioner of competition may apply to the Competition Tribunal to prohibit anti-competitive acts of a company that substantially or completely controls a market, if those acts substantially prevent or lessen competition within the marketplace. Facts The abuse of dominant position issue was brought befor...