The potential mega merger between two state-run shipping conglomerates, China Shipping Group and Cosco Group, which could be the largest ever merger in China’s shipping industry, has drawn varied opinions on its impact.
Industry observers reckon the merger would be much more complex than the tricky merger between the other two state-run shipping groups, Sinotrans and Changjiang Shipping Group.
The combined assets of China Shipping Group and Cosco Group is about RMB530bn ($83.8bn) and half of the assets are based outside the mainland. The two groups also control eight listed companies in total.
Their is a possibility is that the two groups merge as one super group, which will have a larger scale of assets to compete in the market.
Full content: Splash 24/7
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Federal Judge Signals Revisions Likely in DOJ Case Targeting Live Nation Monopoly
A federal judge in New York has indicated that the Justice Department may need to revise its antitrust claims against Ticketmaster and its parent company, Live Nation Entertainment, in a case targeting the companies’ alleged monopoly in the live entertainment industry, per Courthouse News.
The case revolves around accusations that Live Nation’s policies force artists performing in its large amphitheaters to use its services as concert promoters, a practice federal prosecutors argue stifles competition.
During a hearing on Wednesday, U.S. District Judge Arun Subramanian, who is overseeing the case, questioned whether Live Nation’s refusal to rent its amphitheaters to rival promoters constitutes a violation of antitrust laws. According to Courthouse News, the central issue is whether this policy qualifies as illegal “tying” under antitrust law or if it falls under the Supreme Court’s 2004 decision in Verizon v. Law Offices of Curtis V. Trinko LLP. That precedent protects companies’ rights to refuse business with competitors in certain circumstances.
Live Nation has relied heavily on the Trinko ruling to support its motion to dismiss the lawsuit. The company argued that the plaintiffs’ claims mischaracterize how the live entertainment industry operates. According to Courthouse News, Live Nation asserted in its filings that “tying” involves forcing a buyer to purchase a secondary product they don’t want, which it claims does not apply in this case. The company stated, “Promoters are the ones who rent amphitheaters from Live Nation, and performing artists are the ones who hire promoters,” emphasizing that these buyers are distinct and independent actors.
Read more: Consumer Suit Against Live Nation and Ticketmaster to Proceed Alongside US Antitrust Case
Judge Subramanian pressed federal prosecutors to explain how their tying claims were distinct from a refusal-to-deal argument, which Trinko protects under certain circumstances. Department of Justice attorney Arianna Markell contended that the tying claims remain plausible and pointed to the Second Circuit’s ruling in Eastman Kodak Co. v. Henry Bath LLC. That ruling defined tying as requiring a buyer to purchase a second product as a condition of buying the first.
According to Courthouse News, Live Nation’s attorney, Andrew Gass of Latham & Watkins, argued that the Justice Department and state attorneys mischaracterized the dynamics of competition in the live entertainment business.
The civil antitrust case is part of a broader effort by federal and state prosecutors to challenge the dominance of Live Nation and Ticketmaster, which have faced mounting criticism for their control over ticketing, venues, and promotion in the live event industry. Judge Subramanian’s comments suggest the case may hinge on whether the claims can be reframed to survive the Trinko-based defense.
Source: Courthouse News
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