Samsung Electronics Co. Ltd v Harman International Industries Incorporated (LM196Jan17) [2017] ZACT 31; [2017] 1 CPLR 380 (CT) (24 March 2017)

Samsung Electronics Co. Ltd v Harman International Industries Incorporated (LM196Jan17) [2017] ZACT 31; [2017] 1 CPLR 380 (CT) (24 March 2017)

The Tribunal found that the proposed merger between Samsung and Harman would not substantially prevent or lessen competition in any relevant market. The horizontal overlap in home and mobile electronics was minimal, with the merged entity holding less than 20% market share globally and insufficient data to suggest dominance nationally. The vertical overlap was also insignificant, as Samsung's share in upstream markets for semiconductors and display panels was less than 5%, and Harman's downstream share in automotive electronics was less than 2%. Concerns about bundling, tying, and foreclosure were dismissed due to the lack of market power and the existence of viable competitors. Public...

Citation
[2017] ZACT 31
Parties
Applicant: Samsung Electronics Co. Ltd; Respondent: Harman International Industries, Incorporated
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 March 2017
Case Number
LM196Jan17
Procedural Posture
Merger Control / Approval
Outcome
The proposed merger is approved unconditionally.
Judges
Norman Manoim, Andiswa Ndoni, Enver Daniels
Legal Topics
Merger Control, Horizontal Overlap, Vertical Overlap, Input Foreclosure, Public Interest, Bundling and Tying
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Overlap Input Foreclosure Public Interest Bundling and Tying

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 3 Authorities cited 1 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Samsung Electronics Co. Ltd

Applicant

Harman International Industries, Incorporated

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed merger between Samsung and Harman is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the merger raises any adverse public interest concerns, including employment effects.
  3. 3 Whether the merger will result in bundling, tying, or foreclosure in the affected markets.

Ratio Decidendi

The Tribunal found that the proposed merger between Samsung and Harman would not substantially prevent or lessen competition in any relevant market. The horizontal overlap in home and mobile electronics was minimal, with the merged entity holding less than 20% market share globally and insufficient data to suggest dominance nationally. The vertical overlap was also insignificant, as Samsung's share in upstream markets for semiconductors and display panels was less than 5%, and Harman's downstream share in automotive electronics was less than 2%. Concerns about bundling, tying, and foreclosure were dismissed due to the lack of market power and the existence of viable competitors. Public...

Court Disposition

The proposed merger is approved unconditionally.

Orders

  • The merger between Samsung Electronics Co. Ltd and Harman International Industries Incorporated is approved without conditions.