Latest news with #competitionlaw
Globe and Mail
18 hours ago
- Business
- Globe and Mail
Canada needs a wartime competition policy
Joshua Krane is a competition lawyer at MLT Aikins LLP. The changes to Canada's competition laws over the past 2½ years marked a notable consensus across the political spectrum. Politicians of all stripes agreed that Canada's competition laws were out of step with those of global counterparts and contained gaps when it came to wage fixing, drip pricing and anti-competitive agreements. Parliament made it easier to challenge mergers by removing the 'efficiencies defence' that allowed those for which the cost savings exceeded the anticipated negative effects. It put the onus on the parties to show why their merger would not prevent or lessen competition substantially when their combined market share would exceed 30 per cent. The Competition Bureau recently released its annual plan called 'Strengthening competition in a changing economy.' While the plan notably focuses on using the new enhanced enforcement powers given to the bureau by Parliament to stop anti-competitive activity, it does not recognize that Canada needs to be on a war footing when it comes to regulatory enforcement. New Industry Minister Mélanie Joly said it herself: We need a 'wartime philosophy,' and this philosophy should be reflected in the bureau's enforcement plans. As a first step, the bureau should revise its approach to 'Made in Canada' claims so Canadian consumers can more readily support domestic companies when they shop. The current guidelines are too onerous for businesses and limit the ability of manufacturers to make 'Made in Canada' claims when they import raw materials that we don't produce locally. Companies that manufacture products here should be able to say their products are 'Made in Canada' without fear of prosecution. The Big Guide to Canadian Shopping Prioritizing investigations of anti-competitive conduct that makes life less affordable for Canadians is an important objective. What's missing from the bureau's plan is a commitment to direct enforcement activity against firms whose conduct is undermining industry and diverting profits outside of the country. Several of Canada's key industries are being fundamentally disrupted by foreign competition, including news and media. The bureau has a role to play in helping to protect these important industries, including meeting with key industry leaders and prioritizing enforcement. Much ink has been spilled over how the efficiencies defence has saved otherwise anti-competitive mergers. While the defence was invoked only in rare cases, Canada may have overstepped by removing it entirely. There should be a relief valve to allow some mergers that enhance productivity but might temporarily result in higher prices. Competition Bureau investigating proposed merger of companies that make medical isotopes There is a growing consensus that Canada needs to build its domestic industrial capacity in the face of global threats. The government imposes tariffs to help do this. Until our international trade situation calms down, the bureau should consider a relief valve in the application of the merger law in exceptional cases where mergers are needed for productivity enhancement to better align Canada's trade and competition policy. Finally, there is an important role for the bureau to play in advocating for policies that prioritize the construction of infrastructure in other areas of government. Again, this is about balancing short-term affordability and long-term resiliency. In the telecom sector, for example, the bureau should be pushing for rules that limit incumbents from reselling each other's networks. Canadian investment in network infrastructure supports jobs and investment, enhances productivity and promotes resiliency. The steps taken recently to modernize Canada's competition laws were laudable. Now we need to see those tools deployed to ensure that Canada succeeds in the face of increasing threats to our economy.
Yahoo
3 days ago
- Business
- Yahoo
European hotels sue Booking.com over pricing rules
Hotel associations from more than 25 European countries have initiated a large-scale legal case against online travel platform challenging its use of rate parity clauses that allegedly restricted competition and inflated commission fees. The coordinated lawsuit follows a recent ruling by the European Court of Justice (ECJ) that deemed such clauses unlawful under EU competition law. Since the early 2000s, enforced contractual terms known as rate parity clauses. These provisions prevented hotels from offering lower prices on their own websites or other distribution channels, effectively forcing them to maintain uniform pricing on the platform. Hotels argue this practice limited their autonomy, raised operational costs through higher commissions, and suppressed price competition. The ECJ ruling on 19 September 2024 confirmed that these clauses breached European competition regulations by restricting fair competition and disadvantaging smaller independent hotels. The court found that policies hindered pricing transparency and consumer choice, setting the stage for collective legal action. The lawsuit involves national hotel associations from Austria, Belgium, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, and Switzerland. This broad coalition reflects the extensive impact of the platform's pricing practices across the continent. A dedicated legal body has been established to coordinate the claims, with the Netherlands chosen as the jurisdiction for the centralised proceedings. Eligible hotels that paid commissions to between 2004 and 2024 can join the collective action by registering through a streamlined legal platform. The process aims to reduce litigation costs and facilitate compensation claims for overpaid commission fees plus accrued interest. This legal action highlights growing concerns over the market power of online travel agencies and digital platforms in the hospitality sector. By challenging restrictive pricing clauses, hotels seek to regain control over their pricing strategies and improve competitiveness. Industry representatives emphasise that fair competition among booking channels benefits both consumers and service providers by promoting transparency and innovation. The ECJ decision and subsequent lawsuit may influence other digital marketplaces employing similar pricing restrictions. Regulators across Europe are increasingly scrutinising platform practices to ensure compliance with competition laws and to foster a more balanced digital economy. As the European hospitality industry recovers from recent disruptions, the outcome of this case could set a significant precedent. It underscores the importance of protecting independent businesses against anti-competitive agreements and ensuring fair conditions in online hotel booking markets. "European hotels sue over pricing rules" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
6 days ago
- Business
- Irish Times
Irish hotels to join landmark Europe-wide legal action against booking.com
An umbrella organisation representing hundreds of Irish hotels is joining the industry across Europe in an 'unprecedented' legal action against one of the world's largest accommodation platforms over what they say were inflated rate of commission imposed for two decades. The hotels are seeking 'substantial financial compensation' from following a judgment from the European Court of Justice (ECJ) last September which found that the platform's so-called parity clauses breached EU competition law. The contested clauses in the contracts that hotels had to sign if they wanted to feature on the site effectively prevented them from offering lower prices or better availability through other channels, the legal action will say. And it will argue that the strict conditions placed on hotels and their customers put them at a competitive disadvantage by suppressing price competition between and other online platforms. READ MORE The hotels will also argue that it resulted in them being charged inflated levels of commissions with the clauses also restricting them from offering better prices or availability on their own websites, limiting direct sales and autonomy. Under the general principles of European competition law, hotels in Ireland and across Europe are now entitled to claim compensation from for the financial losses suffered. The collective legal action is being supported by the European hospitality association and over 25 national hotel associations across Europe including the Irish Hotels Federation (IHF). It is being brought before the Amsterdam District Court in the Netherlands, where BV is headquartered. More than 900 Irish hotels and guesthouses are eligible to join the action that covers a period from 2004 to 2024. Affected hotels may be eligible to recover a significant portion of commissions paid to in any period from 2004 to 2024 plus interest, the IHF has said. The umbrella group's chief executive Paul Gallagher described it as 'an unprecedented legal action' and said the parity clauses had been 'a major issue for Irish hotels going back 20 years, resulting in significant financial harm due to the inflated levels of commissions charged. We see this as an important opportunity to send a strong message to online booking platforms that unfair business practices will not go unchallenged.' The IHF said it was in direct communication with all affected hotels and guesthouses in Ireland in relation to the next steps for joining the collective legal action against It said the case was being led by a 'team of highly experienced and recognised competition lawyers, litigators and competition economists, who have already successfully achieved the ECJ's judgment of 19 September 2024. In addition to the Irish Hotels Federation, the action is supported by national hotel associations from Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Switzerland. The Irish Times has contacted seeking a response.
Reuters
7 days ago
- Business
- Reuters
Clariant vows to fight ethylene purchasing lawsuit filed by OMV
May 27 (Reuters) - Switzerland's Clariant (CLN.S), opens new tab said on Tuesday it has received a 1-billion-euro ($1-billion) damages claim by Austrian energy company OMV ( opens new tab alleging infringement of competition law on the ethylene purchasing market. "Clariant firmly rejects the allegation and will adamantly defend its position in the proceedings," it said in a statement. Clariant said it was one of four companies targeted by the claim. ($1 = 0.8791 euros)
Yahoo
7 days ago
- Business
- Yahoo
Clariant rejects OMV's allegations against four companies related to the 2020 competition law infringement
AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LRMuttenz, 27 May 2025 Clariant, a sustainability-focused specialty chemical company, today announced that on 26 May 2025, the company received a claim for damages against four companies, including Clariant, from OMV with the court of Amsterdam, The Netherlands. The claim alleges damages totaling to around EUR 1 billion in relation to infringement of competition law on the ethylene purchasing market which was sanctioned by the European Commission in July 2020. Clariant firmly rejects the allegation and will adamantly defend its position in the proceedings. Clariant has substantiated economic evidence that the conduct of the parties did not produce any effect on the market. CORPORATE MEDIA RELATIONS Jochen DubielPhone +41 61 469 63 63 Ellese CaruanaPhone +41 61 469 63 63 Luca LavinaPhone +41 61 469 63 63 Follow us on X, Facebook, LinkedIn, Instagram. INVESTOR RELATIONS Andreas SchwarzwälderPhone +41 61 469 63 73 Thijs BouwensPhone +41 61 469 63 73 This media release contains certain statements that are neither reported financial results nor other historical information. This document also includes forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Clariant's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the timing and strength of new product offerings; pricing strategies of competitors; the company's ability to continue to receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. Clariant is a focused specialty chemical company led by the overarching purpose of 'Greater chemistry – between people and planet.' By connecting customer focus, innovation, and people, the company creates solutions to foster sustainability in different industries. On 31 December 2024, Clariant totaled a staff number of 10 465 and recorded sales of CHF 4.152 billion in the fiscal year. Since January 2023, the Group conducts its business through the three Business Units Care Chemicals, Catalysts, and Adsorbents & Additives. Clariant is based in Switzerland. Attachment Clariant Ad hoc Release_Rejection of OMV Damage Claim 20250527 ENError while retrieving data Sign in to access your portfolio Error while retrieving data
