Recap of the Failed $29 Billion Applied Materials – Tokyo Electron Merger
On April 27, 2015, Applied Materials Inc. and Tokyo Electron Ltd. abandoned their merger plans after facing pushback from the Department of Justice (DOJ).
The merger, which has been pending since September 2013, would have combined two of the largest suppliers of semiconductors and other equipment used by
computer chip manufacturers. On April 27, the DOJ released a
saying that certain concessions offered by the companies “failed to resolve the department’s competitive concerns.”
$26.8 Million Settlement with Cardinal Health Marks Second-Highest FTC Disgorgement
On April 20, 2015, the FTC announced its $26.8 million settlement with Cardinal Health, Inc. The FTC charged Cardinal Health with illegally monopolizing 25
local markets for the sale and distribution of low-energy radiopharmaceuticals, which resulted in hospitals and clinics being forced to pay inflated prices
for the drugs. The $26.8 million disgorgement, the second-largest disgorgement in FTC history, will be distributed to injured customers. The
Final Order and Stipulated Permanent Injunction includes an
injunction and limitations regarding the purchase, sale and distribution of radiopharmaceuticals, and also requires Cardinal Health to institute an
antitrust compliance program for its Nuclear Pharmacy Services business.
StubHub Files Antitrust Complaint Against Ticketmaster and the Golden State Warriors
On March 29, 2015, eBay’s StubHub took legal action against Ticketmaster and the Golden State Warriors, filing a 34-page
complaint in the Northern District of California,
alleging a series
of anti-competitive practices. The case involves an exclusive arrangement between the Warriors and Ticketmaster regarding the reselling of Warriors season
tickets. StubHub, the largest ticket reselling platform, alleged that the exclusivity allows Ticketmaster to charge supra-competitive service fees and
associated charges. As alleged in the complaint, the arrangement offers a “Hobson’s Choice to Warriors fans,” requiring them to either resell through
Ticketmaster or forfeit their tickets altogether. This suit marks a continuation of the ongoing battle between the two companies, with Ticketmaster
previously filing suit against eBay in 2007 alleging that StubHub interfered with certain exclusive rights to sell tickets.
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