Power management conglomerate Eaton avoided a potential multibillion dollar antitrust fine in a last-minute settlement reached with Meritor, which sued Eaton for antitrust violations, according to reports.
A jury trial set to begin Monday was called off after Eaton and Meritor reached an agreement to end the suit, filed by Meritor Transmission and affiliate ZF Meritor on claims Eaton offered unfair rebates and exclusive contracts to gain market dominance.
Eaton was facing up to $2.4 billion in damages claims but has agreed to pay $500 million to settle the case, reports say.
Meritor accused Eaton of offering “exclusive dealing contracts” and unfair incentives to gain a 90 percent truck transmissions market share. A jury in 2009 found Eaton had caused damages to Meritor for the anticompetitive behavior.
Full content: Bloomberg
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