The Irrepressible

Empagran

Coming Soon to a Court Near You

Michael D. HausfeldCohen, Milstein, Hausfeld & Toll, P.L.L.C.

53rd Spring Meeting of the ABA Section of Antitrust LawInternational Antitrust: Developments after Empagran and Intel

March 31, 2005Washington, D.C.

United States v. LSL BiotechnologiesSniado v. Bank Austria AG

• Insufficient factual allegations • Not a global cartel

• Does not mention Empagran• No direct effect on U.S.

The European Paradox*• In a reversal of previous European statements

suggesting that extraterritorial prescriptive jurisdiction was contrary to international law, a UK court held that such use was not an illegitimate interference in the affairs of a foreign state.

• It remains to be seen whether Member States will observe the inherent contradiction in condemning American antitrust extraterritoriality and extolling the European use of the same tactic.

• Despite divergent economic, cultural, and legal traditions, the United States and Europe have a common interest in responding to the challenges posed by the globalization of economic activity.

*See Alexander Layton & Angharad M. Parry, Extraterritorial Jurisdiction-European Responses, 26 Houston Journal of International Law 2, 309 (2004).

EC & DOJ EC & DOJ

Cartel Cartel

Investigations

Investigations

•Dozens of recent EC and DOJ Dozens of recent EC and DOJ companion cartel investigationscompanion cartel investigations

•Including the following:Including the following:

•Rubber ChemicalsRubber Chemicals•EPDMEPDM•MCAAMCAA•Carbon BlackCarbon Black•Plastic AdditivesPlastic Additives•PolychloroprenePolychloroprene•Publication PaperPublication Paper•LabelstockLabelstock