20 April 2018

UK competition watchdog tells Diebold Nixdorf to sell off some business

16 March 2017  |  3054 views  |  0 atm

The UK's Competition and Markets Authority (CMA) has ordered Diebold Nixdorf to sell one of its customer-operated ATM businesses.

Last year, the CMA ran an in-depth investigation into the $1.8 billion Diebold/Wincor merger over concerns that the deal would substantially reduce competition in the UK ATM market, leaving only NCR as a credible competitor.

Now, the CMA says that if Diebold Nixdorf want the merger to be completed they must sell either Diebold’s or Wincor’s customer-operated ATMs business in the UK to a new owner, to be approved by the watchdog.

Diebold says that it is "actively pursuing" a sell off of the Diebold business with an unnamed potential buyer. Says a statement: "The company believes it can satisfy the CMA's requirements and conclude this transaction as soon as practicable."

Separately, in the latest round of an ongoing legal battle, an administrative law judge (ALJ) for the US International Trade Commission (ITC) has found that Diebold Nixdorf has infringed a patent belonging to fellow ATM maker Nautilus Hyosung America.

In a "final initial determination", the ALJ found that Diebold had infringed Hyosung's patent relating to cash and cheque automatic depositing technology. Hyosung's claims on another three patents were not backed by the judge.

In a statement, Hyosung says that the preliminary ruling "recommends banning the importation and/or sale of Diebold's latest line of financial industry products that incorporate its ActivMedia technology—specifically Diebold's 7700, 7780, 7790 and 9900 ATMs—after finding that Diebold has infringed Hyosung's patent rights."

The determination will now be considered by the ITC.

Jonathan Leiken, senior vice president, chief legal officer and corporate secretary, Diebold Nixdorf, insists that the preliminary findings has no bearing on existing products in the market or future products provided by Diebold Nixdorf

"This claim is nothing more than an attempt by Hyosung to distract from our patent infringement case against them," he says. "In that case, we are confident that the ruling in our favor against Hyosung will be upheld and that the technology infringing on our patents will be barred from entering the United States."

Previously, a different ALJ ruled that Hyosung had infringed two Diebold Nixdorf patents. The ITC has yet to offer its final ruling on that case.

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