Hewlett Packard Company v Electronic Data Systems Corporation (70/LM/JUN08) [2008] ZACT 70 (9 September 2008)

Hewlett Packard Company v Electronic Data Systems Corporation (70/LM/JUN08) [2008] ZACT 70 (9 September 2008)

The Tribunal found that both HP and EDS have low market shares in the relevant IT services markets, both internationally and nationally. The horizontal overlap in consulting, development, integration, and IT management services is minimal, and the parties will continue to face effective competition from numerous other firms. The vertical relationship, where EDS SA procures certain services from HP resellers, is insignificant, amounting to less than 1% of either party's annual turnover in South Africa. There are no foreclosure concerns. The Tribunal concluded that the merger will not result in any substantial lessening or prevention of competition in any relevant market. No public interest...

Citation
[2008] ZACT 70
Parties
Applicant: Hewlett Packard Company; Respondent: Electronic Data Systems Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 September 2008
Case Number
70/LM/JUN08
Procedural Posture
Merger Application / Approval
Outcome
Merger approved without conditions.
Judges
N Manoim, Y Carrim, U Bhoola
Legal Topics
Horizontal Merger, Vertical Relationship, Market Share Analysis, Substantial Lessening of Competition
Competition Law Commercial and Corporate Horizontal Merger Vertical Relationship Market Share Analysis Substantial Lessening of Competition

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Hewlett Packard Company

Applicant

Electronic Data Systems Corporation

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the merger between Hewlett Packard Company and Electronic Data Systems Corporation will substantially lessen or prevent competition in any relevant market.
  2. 2 Whether any public interest concerns arise from the merger.

Ratio Decidendi

The Tribunal found that both HP and EDS have low market shares in the relevant IT services markets, both internationally and nationally. The horizontal overlap in consulting, development, integration, and IT management services is minimal, and the parties will continue to face effective competition from numerous other firms. The vertical relationship, where EDS SA procures certain services from HP resellers, is insignificant, amounting to less than 1% of either party's annual turnover in South Africa. There are no foreclosure concerns. The Tribunal concluded that the merger will not result in any substantial lessening or prevention of competition in any relevant market. No public interest...

Court Disposition

Merger approved without conditions.

Orders

  • The merger between Hewlett Packard Company and Electronic Data Systems Corporation is approved without conditions.