Alleged abuse of dominance in the market for the production and sale of cholic acid

Lear assisted two major Italian firms that have been accused by the Italian Competition Authority (ICA) of abusing their dominant position in the market for the production and sale of cholic acid (constructive refusal to deal). Cholic acid is derived from animal bile as an intermediate stage for the production of UDCA (an active pharmaceutical principle – API). Lear’s economists assisted both companies in the administrative proceeding analyzing and illustrating to the ICA the value chain, the competitive conditions at each level, and the price formation mechanism. The ICA closed its investigation accepting some structural remedies proposed by the two firms under investigation.