Introduction
Stay updated on recent enforcement actions and sanctions around the G-20 nations with our weekly digest.
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Key Enforcement Actions:
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Brazil:
Date: 5 September 2024
- Authority: Administrative Council for Economic Defense (CADE)
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- Summary: CADE recommended convicting Rinnai for anticompetitive practices in Brazil’s gas water heater market.
- Impact: Resellers and consumers face higher prices and reduced choice.
- Action Required: Rinnai should prepare for legal proceedings and possible penalties.
- Read More: https://www.gov.br/cade/pt-br/assuntos/noticias/superintendencia-geral-recomenda-condenacao-de-empresa-que-atua-no-mercado-de-aquecedores-de-agua-a-gas
Date: 4 September 2024
- Authority: Comptroller General of the Union (CGU)
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- Summary: Operation Ypervoli targeted fraud, embezzlement, and money laundering in municipal health contracts around the Federal District.
- Impact: Misappropriated funds hindered public health service expansion in rapidly growing areas.
- Action Required: Ensure transparency by monitoring the investigation’s progress and report any additional suspicious activities.
- Read More: https://www.gov.br/cgu/pt-br/assuntos/noticias/2024/09/cgu-e-pf-combatem-desvios-de-recursos-da-saude-em-cidades-do-entorno-do-df
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Canada:
Date: 5 September 2024
- Authority: Competition Bureau Canada
- Summary: Marcel Roireau of Construction DJL received a one-year house arrest sentence for rigging bids on public contracts in Québec.
- Impact:The bid-rigging undermines fair competition, affecting contract integrity and pricing.
- Action Required: Those involved in bid-rigging should consider cooperating with the Competition Bureau’s Immunity and Leniency Programs.
- Read More: https://www.canada.ca/en/competition-bureau/news/2024/09/one-year-sentence-for-construction-djl-executive-who-rigged-bids-for-public-contracts-in-quebec.html
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France:
Date: 5 September 2024
- Authority: Directorate-General for Competition Consumer Affairs and Fraud Control
- Summary: The website rivierabudget.com was blocked by the Competition, Consumer Affairs and Fraud Prevention (CCRF) Officers for misleading commercial practices, including false company identification and a non-existent reservation service.
- Impact: Consumers were misled by fraudulent services, and the website’s shutdown protects future users.
- Action Required: Users should avoid similar fraudulent sites and report suspicious activities to the authorities.
- Read More: https://www.economie.gouv.fr/dgccrf/requisition-numerique-blocage-du-site-rivierabudgetcom-0
Date: 3 September 2024
- Authority: French Competition Authority
- Summary: The EU Court of Justice annulled a prior ruling allowing the European Commission to review Illumina’s acquisition of Grail.
- Impact: This decision affects competition oversight in innovative sectors across multiple EU states.
- Action Required: Monitor future merger reviews and regulatory updates for potential changes in enforcement strategies.
- Read More: https://www.autoritedelaconcurrence.fr/en/article/autorite-de-la-concurrence-takes-note-illumina-grail-judgment-court-justice-european-union
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India:
Date: 6 September 2024
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI imposed a ₹3,50,000/- penalty on Housing and Urban Development Corporation Limited for non-compliance with KYC and NHB regulations.
- Impact: The penalty highlights deficiencies in risk categorization and asset security compliance, signaling tighter regulatory scrutiny for the company.
- Action Required: The company must enhance its KYC processes, periodically review customer risk categorization, and ensure asset security compliance under NHB regulations.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58654
Date: 3 September 2024
- Authority: Telecom Regulatory Authority of India (TRAI)
- Summary: The TRAI blacklisted over 50 entities and disconnected more than 2.75 lakh telecom resources for spam under TCCCPR, 2018.
- Impact: The crackdown improves consumer protection by reducing spam calls across telecom networks.
- Action Required: Telecom users should report spam calls and monitor their networks for enhanced security measures.
- Read More: https://trai.gov.in/notifications/press-release/trai-release-regarding-crackdown-spam-calls-over-50-entities-blacklisted
Date: 2 September 2024
- Authority: Reserve Bank of India (RBI)
- Summary: The RBI imposed a ₹25,000 penalty on RAR Fincare Limited, Chennai, for non-compliance with NBFC management change regulations.
- Impact: The penalty highlights the importance of NBFCs adhering to RBI directions on management changes.
- Action Required: NBFCs must ensure prior RBI approval for changes affecting over 30% of directors to avoid penalties.
- Read More: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58621
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Japan:
Date: 4 September 2024
- Authority: Japan Fair Trade Commission (JFTC)
- Summary: The JFTC found Pal System in violation of the Subcontracting Act by unjustly reducing subcontractor fees and issued a recommendation for corrective actions.
- Impact: Pal System must repay over ¥27 million to subcontractors and improve internal processes to comply with the law.
- Action Required: Pal System should confirm violations, train staff, inform subcontractors of repayments, and report corrective actions to the JFTC.
- Read More: https://www.jftc.go.jp/houdou/pressrelease/2024/sep/240904_palsystem.html
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Mexico:
Date: 4 September 2024
- Authority: Federal Economic Competition Commission (COFECE)
- Summary: COFECE investigated illegal exclusivity in payment services, deposits, and withdrawals in stores that may limit competition.
- Impact: Companies may face fines up to 8% of annual revenue; directors could be banned for up to 5 years.
- Action Required: Monitor the investigation outcomes and review market practices for compliance.
- Read More: https://www.cofece.mx/cofece-investiga-la-posible-existencia-de-exclusividades-ilegales-en-los-servicios-de-pagos-depositos-y-retiros-en-efectivo-en-tiendas/
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Russia:
Date: 5 September 2024
- Authority: Prosecutor General’s Office
- Summary: A Moscow court convicted Alexey Kurinov, Yana Tagina, Yulia Charykova, and Vitaly Gashakov for fraud and illegal use of trademarks of major cultural institutions by selling tickets at inflated prices via fake websites.
- Impact: Kurinov and Gashakov received prison sentences and fines, while Tagina and Charykova were sentenced with probation and fines. Other members of the group are still at large.
- Action Required: Monitor for updates on apprehension of remaining group members and compliance with legal regulations on ticket sales.
- Read More: https://epp.genproc.gov.ru/web/gprf/mass-media/news?item=97747775
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South Korea:
Date: 5 September 2024
- Authority: Financial Services Commission (FSC)
- Summary: The FSC fined Rootronic Co., Ltd. and Seed Co., Ltd. for violations of accounting standards, and their auditors for breaches of auditing standards. Rootronic was fined ₩793.7 million, Seed Co. ₩516.6 million, with additional fines imposed on involved auditors.
- Impact: Fines amount to ₩1.6 billion in total, affecting both companies and their auditors. Designation measures for auditors were decided in July 2024.
- Action Required: Review and ensure compliance with accounting and auditing standards; monitor the implementation of auditor designation measures.
- Read More: https://www.fsc.go.kr/no010101/83022?srchCtgry=&curPage=&srchKey=&srchText=&srchBeginDt=&srchEndDt=
Date: 4 September 2024
- Authority: Financial Supervisory Service (FSS)
- Summary: The FSS conducted extensive inspections of loan companies to prevent unfair collection practices and ensure compliance with the upcoming “Personal Debtor Protection Act.”
- Impact: The inspections will address unfair practices, ensure adherence to new legal requirements, and aim to protect debtors’ rights amid challenging economic conditions.
- Action Required: Monitor the results of the inspections and ensure compliance with the “Personal Debtor Protection Act” to prevent unfair collection practices.
- Read More: https://www.fss.or.kr/fss/bbs/B0000188/view.do?nttId=138134&menuNo=200218&pageIndex=1
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Turkey:
Date: 3 September 2024
- Authority: Turkish Competition Authority
- Summary: An investigation opened into Forever Living, Herbalife, and Homm for potential violations related to resale pricing and online sales restrictions.
- Impact: The investigation could lead to findings of anti-competitive practices and possible penalties for the companies involved.
- Action Required: Ensure compliance with competition laws and monitor the investigation outcomes.
- Read More: https://www.rekabet.gov.tr/en/Guncel/investigation-launched-on-forever-living-ccfb8f7fe569ef1193cf0050568585c9
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United Kingdom
Date: 6 September 2024
- Authority: Competition and Market Authority (CMA)
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- Summary: The CMA provisionally found Google in violation of UK competition law by favoring its own ad tech services, disadvantaging competitors, publishers, and advertisers.
- Impact: The investigation could lead to penalties, reforms, and stricter regulations on Google’s ad tech practices, affecting the UK digital advertising market.
- Action Required: Google must address the CMA’s concerns and potentially adjust its ad tech operations to ensure fair competition.
- Read More: https://www.gov.uk/government/news/cma-objects-to-googles-ad-tech-practices-in-bid-to-help-uk-advertisers-and-publishers
Date: 5 September 2024
- Authority: Competition and Market Authority (CMA)
- Summary: The CMA investigated Ticketmaster for potential breaches of consumer protection laws related to dynamic pricing and ticket sales for the Oasis concert.
- Impact: The investigation could lead to findings of unfair commercial practices and potential legal actions against Ticketmaster if consumer protection laws were breached.
- Action Required: Submit evidence of any issues experienced during the ticket purchasing process to the CMA by September 19, 2024, and monitor the investigation’s progress.
- Read More: https://www.gov.uk/government/news/cma-launches-investigation-into-ticketmaster-over-oasis-concert-sales
- Authority: Intellectual Property Office (IPO)
- Summary: Muhammad Asghar Ali challenged the validity of Madimah Limited’s registered design (no. 6144642) for “double sided sticky pads,” arguing it lacked novelty and was already available prior to registration. The challenge was based on evidence showing the product was sold before the registration date.
- Impact: Madimah Limited’s design registration was upheld, and no costs were awarded to the proprietor due to the absence of a completed cost pro forma.
- Action Required: Madimah Limited should complete and submit the cost pro forma, if seeking cost recovery, and ensure future submissions adhere to procedural requirements.
- Read More: https://www.gov.uk/government/publications/design-hearing-decision-o083824
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United States
Date: 5 September 2024
- Authority: Federal Trade Commission (FTC)
- Summary: The FTC staff opposed Union Health’s proposed merger with Terre Haute Regional Hospital, arguing it could reduce competition and harm patients, citing potential cost increases and worse healthcare outcomes.
- Impact: If the merger proceeds, it may lead to higher costs, reduced quality of care, and lower wages for hospital workers in the Terre Haute area.
- Action Required: The Indiana Department of Health should consider the FTC’s concerns and evidence before deciding whether to approve the COPA application for the merger.
- Read More: https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-staff-opposes-proposed-indiana-hospital-merger
- Authority: Equal Employment Opportunity Commission (EEOC)
- Summary: The EEOC filed lawsuits against United Airlines, Epiq Food Hall, and River’s Edge Bar and Grill for creating hostile work environments through racial and sexual harassment.
- Impact: The lawsuits highlight serious breaches of Title VII, potentially leading to increased scrutiny and accountability for workplace harassment across the affected industries.
- Action Required: Employers should review and strengthen their harassment policies and training to ensure compliance with federal anti-discrimination laws and prevent similar issues.
- Read More: https://www.eeoc.gov/newsroom/eeoc-sues-three-employers-workplace-harassment
Date: 4 September 2024
- Authority: Federal Reserve Board (FRB)
- Summary: The FRB took enforcement actions against First Interstate Bank for flood insurance violations and United Texas Bank with a Cease and Desist Order.
- Impact: The enforcement actions address regulatory non-compliance, potentially leading to financial penalties and operational restrictions for the involved banks.
- Action Required: Banks should review and improve their compliance with flood insurance requirements and regulatory standards to avoid similar enforcement actions.
- Read More: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20240904a.htm
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Key Sanctions:
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European Union:
Date: 2 September 2024
- Authority: European Council
- Summary: The Council issued a statement on behalf of the EU on the alignment of certain countries with Council Decision (CFSP) 2024/2056 concerning specific measures to combat terrorism.
- Impact: This alignment reflects the ongoing commitment of these countries to the EU’s foreign policy and restrictive measures, emphasising a unified stance on counter terrorism.
- Action Required: Countries aligning with the EU decision must implement the restrictive measures and ensure compliance with the outlined provisions.
- Read More: https://www.consilium.europa.eu/en/press/press-releases/2024/09/02/statement-by-the-hreu-on-the-alignment-of-certain-countries-with-council-decision-cfsp-20242056-concerning-specific-measures-to-combat-terrorism/
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Compliance Tips Staying Compliant
- Tip 1: Regularly review and update compliance policies.
- Tip 2: Conduct internal audits to ensure adherence to regulations.
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