June 2008

Anticompetitive practices

 The European Commission adopts legislative package on cartel settlement procedures
Court of First Instance of Namur (Namur)
Belgium 224 contributions 46627 visits
Further to its ongoing efforts to improve and streamline the procedures for fighting cartels, on 30 June 2008, the Commission adopted its legislative package concerning the settlement procedure in cartel cases. The adoption of this legislative package follows the results of a public (...)

The Paris Commercial Court condemns a leading auction website to pay damages to perfume makers for a violation of their selective distribution networks (eBay)
ADVANT Altana (Paris)
France 1 contribution 3802 visits
On 30 June 2008, the Commercial Court of Paris (Tribunal de Commerce de Paris) rendered three important decisions condemning the international auction website eBay mainly for its participation to an infringement of the IP rights of six manufacturers of luxury products belonging to the Louis (...)

The Paris Commercial Court finds a leading auction website liable for the infringement of selective distribution networks and the unlawful acts it committed against perfumers on its sites (eBay)
Vogel & Vogel (Paris)
France 94 contributions 118883 visits
Four perfumers sue eBay, the world’s foremost brokerage platform for remote electronic bidding, for having permitted, in violation of their rights, the sale of products marketed through unauthorized channels and counterfeit sales on its sites. eBay disputed the competence of the French (...)

The EU Commission introduces a new settlement procedure for cartel cases during investigations
Linklaters (Paris)
France 155 contributions 250447 visits
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Secretary of State for the Home Department (London)
United Kingdom 17 contributions 34954 visits
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Linklaters (London)
United Kingdom 15 contributions 16691 visits
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On 30 June 2008, the European Commission introduced a new settlement procedure for cartel cases. Under the new procedure, the parties in a cartel investigation may acknowledge their breach of European antitrust law and waive certain procedural rights in exchange for a 10% reduction of the (...)

The Czech Regional Court in Brno cancels the decision of the President of the Office for the Protection of Competition concerning a well-known, long-running international cartel operating within the sector of gas insulated switchgears on the grounds of breaching the legal principle of ne bis in idem (GIS cartel)
Weinhold Legal (Prague)
Czech Republic 2 contributions 1222 visits
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Dubanská & Co (Prague)
Czech Republic 2 contributions 1222 visits
I. Introduction On 26 June 2008, the Regional Court in Brno cancelled the decision of the President of the Czech Office for the Protection of Competition (the „Office«) concerning a well-known, long-running international cartel operating within the sector of gas insulated switchgears (...)

The Turkish Competition Authority rules that the block exemption on vertical agreements applies to a vertical agreement containing hard-core restraints (Sinan Erdoðan / Lido Su)
Derman Düren Akol (Istanbul)
Turkey 5 contributions 12512 visits
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Simmons & Simmons (London)
United Kingdom 2 contributions 3653 visits
Sinan Erdoðan (the “Distributor”) applied on 23 May 2008 to the Turkish Competition Board (the “Board”) alleging that the distribution agreement (the “Distribution Agreement”) entered into with Lido Su and Gýda San. Tic. A.Þ. (“Lido Su”) in October 2006 regarding the resale of spring water in (...)

The Lazio Regional Administrative Court cancels the NCA’s decision fining € 11.3 M a market-sharing agreement in water services (Acea / Suez / Publiacqua)
Luigi Prosperetti (Milan)
Italy 6 contributions 13422 visits
Background In November 2007, the Italian Competition Authority (ICA) fined Acea for 8.3 million, and Suez Environment (SE) for 3 million for a market-sharing agreement in water services . The Italian NCA had consistently maintained that joint-ventures among competitors in bidding for public (...)

The EU Commission fines aluminum fluoride producers for operating a cartel in which they agreed on a worldwide target price increase (Boliden Odda / Fluorsid / Minmet Financing Company / Societe des Industries Chimiques du Fluor / Industrial Quimica de Mexico)
European Commission - DG COMP (Brussels)
Belgium 2 contributions 1091 visits
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European Commission
Belgium 2 contributions 1091 visits
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European Commission - DG TRADE (Brussels)
Belgium 6 contributions 2194 visits
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"Recent cartel cases - Sodium Chlorate and Aluminium Fluoride"* In June 2008, the Commission adopted two prohibition decisions against infringements of Article 81 of the EC Treaty and Article 53 of the EEA Agreement and imposed fines totalling some €84 million. In both cases, the product (...)

The French Court of Appeal of Colmar rejects a request to forbid Internet resellers to sell a supplier’s products considering that the legality of its exclusive distribution network is not established (Brandalley / Over Stock / Puma)
Weil, Gotshal & Manges (Paris)
France 5 contributions 6988 visits
French courts are more and more solicited by suppliers claiming that online resellers or platforms violate their selective and/or exclusive distribution networks. We all remember the decisions recently rendered by the Paris commercial court in favour of LVMH against ebay . In a similar case, (...)

The Paris Court of Appeal reduces fines for a market-sharing agreement in the construction sector (France Travaux)
Van Bael & Bellis (Brussels)
Belgium 386 contributions 92652 visits
On 24 June 2008, the Paris Court of Appeal reduced and annulled some of the fines previously imposed by the French Competition Council on a number of building and civil engineering companies for having entered into a market-sharing agreement relating to public markets in the Île-de-France (...)

The Japan Fair Trade Commission imposes surcharges on manufacturers and sellers of Polypropylene for having implemented a price-fixing agreement (Idemitsu Kosan / Sumitomo Chemical / SunAllomer)
Japan Fair Trade Commission (Tokyo)
Japan 133 contributions 23937 visits
Surcharge Payment Orders to Polypropylene Manufacturers and Sellers* The Japan Fair Trade Commission (JFTC)ordered the four polypropylene manufacturers and sellers, on June 20,2008, to pay the surcharge as follows in accordance with the transitional measure under the revised Antimonopoly Act (...)

The Turkish Competition Authority grants individual exemption to an exclusive distribution agreement (GlaxoSmithKline / Pfizer)
University of Leeds
United Kingdom 13 contributions 28242 visits
In an interesting decision on 20 June 2008, the Turkish Competition Board (TCB) has granted an individual exemption to an exclusive distribution agreement between GlaxoSmithKline Pharmaceuticals Co. and Pfizer Pharmaceuticals Ltd after refusing to grant negative clearance to the agreement (...)

The Finnish Competition Authority closes its investigation into exchange of confidential information in the daily consumer goods retail trade market (RuokaKesko, Suomen Osuuskauppojen Keskuskunta, Tradeka)
Roschier (Helsinki)
Finland 5 contributions 14326 visits
The Finnish Competition Authority (hereinafter the “FCA”) has closed its investigation into exchange of confidential information in the market for retail trade of daily consumer goods between RuokaKesko Oy (hereinafter “Kesko”), Suomen Osuuskauppojen Keskuskunta (hereinafter “SOK”) and Tradeka (...)

The Lisbon Court of Appeal upholds the Lisbon Commercial Court’s decision that had confirmed a decision of the Portuguese Competition Authority relating a proceeding pursuant to Competition Law for the setting of minimum fees for dental services (Portuguese Dental Association)
Belzuz (Lisbon)
Portugal 3 contributions 888 visits
1) The Administrative Proceedings - Autoridade da Concorrência (Portuguese Competition Authority) On June 30, 2005 the Autoridade da Concorrência (Portuguese Competition Authority - PCA) imposed a fine to the Ordem dos Médicos Dentistas (Portuguese Dental Association) of €160,181.00 for (...)

The Spanish Competition Authority issues a report on the fixing of minimum rates for road cargo transportation
Pontificia Comillas University - ICADE
Spain 1 contribution 3281 visits
On 17 June 2008, the Spanish Competition Authority (Comisión Nacional de la Competencia, hereinafter CNC) issued, at the request of the Ministry of Public Works and Infrastructure, a report on the fixing of minimum rates for road cargo transportation and its effect on competition under both (...)

The Italian Antitrust Authority launches an investigation on the alleged restrictive practices in the cosmetic sector (Cosmetics / Toiletries companies)
Freshfields Bruckhaus Deringer (Rome)
Italy 5 contributions 29366 visits
On 12 June 2008 the Autoritá Garante della Concorrenza e del Mercato (Italian Antitrust Authority, IAA) started an investigation for alleged restrictive practices against the Italian subsidiaries of a number of multinational companies active in the cosmetic sector and, namely: Henkel, (...)

The UK Competition Authority secures the first ever criminal convictions against individuals for cartel offences - a milestone in antitrust enforcement (Marine Hoses Cartel)
Womble Bond Dickinson (Washington)
United States 5 contributions 16157 visits
Introduction On 11 June 2008, at Southwark Crown Court, His Honour Judge Geoffrey Rivlin QC marked the beginning of a new era in antitrust enforcement in the UK when he entered the first ever criminal convictions against individuals for a cartel offence under section 188 of the Enterprise (...)

The UK Competition Authority issues the first imprisonment and director’s disqualification orders against individuals prosecuted for criminal cartel (Marine Hoses Cartel)
Innovate Finance (London)
France 29 contributions 90036 visits
On 19 December 2007, the Office of Fair Trading (hereinafter “OFT”) charged three UK businessmen with cartel offence under the Enterprise Act. This was the first time that charges had been brought for cartel offence. The three men were arrested at the airport, where they were, following the (...)

The French NCA sanctions four companies for bid rigging practices in the moderate-rent housing sector but significantly reduces the amount of the fine in application of the settlement procedure (Spid, Spid Anjou, Haute Mayenne Services, Onet Services)
Juliette Goyer Avocat (Paris)
France 22 contributions 61998 visits
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French Competition Authority (Paris)
France 10 contributions 45074 visits
In its decision dated 11 June 2008, the French Competition Council sanctioned four companies that tendered to a servicing of premises bid launched by a Public Office for moderate-rent housing, for violating Articles 81 of the EC Treaty and its French equivalent, article L. 420-1 of the (...)

The European Commission fines Sodium Chlorate producers in a cartel case (Akzo Nobel / Finnish Chemicals / Elf Aquitaine / Uralita)
European Commission - DG COMP (Brussels)
Belgium 2 contributions 1091 visits
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European Commission
Belgium 2 contributions 1091 visits
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European Commission - DG TRADE (Brussels)
Belgium 6 contributions 2194 visits
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"Recent cartel cases - Sodium Chlorate and Aluminium Fluoride"* In June 2008, the Commission adopted two prohibition decisions against infringements of Article 81 of the EC Treaty and Article 53 of the EEA Agreement and imposed fines totalling some €84 million. In both cases, the product (...)

The Hungarian Court of Appeal upholds the NCA’s decision against the "road construction cartel" (Egút Egri Útépítõ / Strabag Építõ / Hídépítõ)
Hogan Lovells (Budapest)
Hungary 8 contributions 18504 visits
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Hogan Lovells (Budapest)
Hungary 1 contribution 2347 visits
With its judgment of second instance adopted on 11 June 2008, the Metropolitan Court of Appeal has upheld the judgment of first instance and therefore the decision of the Hungarian Competition Authority in the lawsuit brought by Egút Egri Útépítõ Zrt, Strabag Építõ Zrt and Hídépítõ Zrt as (...)

An Italian Administrative Court confirms that a cartel took place in hospital supplies but slashes down fines (Bristol Myers Squibb)
Latham & Watkins (Brussels)
Belgium 3 contributions 18140 visits
Introduction The Regional Administrative Tribunal of Latium, Rome Section (“TAR Latium”) by a judgment published on 6 June 2008 has upheld a decision of the Italian Antitrust Authority (“IAA”) finding that four companies had rigged supplies of ostomy products to the Italian National Health (...)

The Japan Fair Trade Commission imposes surcharges on manufacturers and sellers of steel pipe piles and steel sheet piles for having implemented an anticompetitive price-fixing agreement (JFE Steel / Nippon Steel / Sumitomo Metal Industrie)
Japan Fair Trade Commission (Tokyo)
Japan 133 contributions 23937 visits
Cease and Desist Order and Surcharge Payment Order against Manufacturers and Sellers of Steel Pipe Piles and Steel Sheet Piles* The Japan Fair Trade Commission (JFTC), in accordance with the provisions of the Antimonopoly Act (AMA), has investigated manufacturers and sellers of steel pipe (...)

The Italian Competition Authority fines a bakers trade association for price-fixing practices (Unione Panificatori / Listino Prezzi del Pane)
Municipality of Cagliari
167 contributions 133140 visits
By a recent decision the Italian Competition Authority (ICA) has condemned the Rome’s branch of the Italian trade association of bakers (Unione Panificatori) for fixing retail prices for bread in the city and province of Rome. The facts of the case In September 2007, following a meeting of (...)

The Portuguese Competition Authority assesses possible concerted practices of oil companies (Mercado dos Combustíveis)
Luís Silva Morais (Lisbon)
Portugal 13 contributions 31245 visits
The Portuguese Competition Authority (“Autoridade da Concorrência”, hereinafter ‘ADC’), has recently presented a controversial Report on the formation of oil prices and the functioning of oil markets in Portugal. This Report, presented on the 2nd of June, has been produced taking into account (...)

The OECD holds a roundtable on the construction industry
OECD - Competition Division (Paris)
France 313 contributions 1371884 visits
Executive summary, by the Secretariat Considering the roundtable discussion, the delegates’ written submissions and the issues paper, several key points emerge: (1) The construction industry is a vital component of every OECD economy. The construction sector is responsible for building new (...)

Unilateral Practices

 The Maltese Competition Authority extends interim measures to suspend restrictive practices likely to cause serious, immediate and irreparable prejudice to competition (Melita Cable)
Lia & Aquilina (Malta)
Malta 16 contributions 44883 visits
Following the decision of the Commission for Fair Trading (hereinafter referred to as the ‘Commission’) dated 19 May 2006, and in terms of Article 15(7) of Maltese Competition Act, the Director of the Office for Fair Trading (hereinafter referred to as ‘Director’) and a competitor (Multiplus (...)

The Polish Competition Authority imposes a financial penalty on an authors’ association for a late compliance with a previous cease and desist order (ZAiKS)
European Commission - DG COMP (Brussels)
France 37 contributions 155628 visits
Article 107 of the Act of 16 February 2007 on Competition and Consumer Protection (hereafter: the ACCP) provides, inter alia, that the President of the Office of Competition and Consumer Protection (hereafter : the OCCP President) may impose on undertakings a financial penalty equivalent up to (...)

The French Supreme Court questions allocation of costs in a predatory pricing case (Vedettes inter-îles vendéennes)
Lenoir Avocats (Paris)
17 contributions 93778 visits
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Eversheds Sutherland (Paris)
France 14 contributions 82046 visits
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Johnson & Johnson (Issy-les-Moulineaux)
France 13 contributions 80176 visits
1. Facts and ruling The Régie départementale des passages d’eau de la Vendée (RDPEV) is the provider of a public service : it operates year-round in any weather daily ferry services for passengers, cargo and vehicles between the mainland and l’île d’Yeu. For this purpose, RDPEV uses three (...)

The EU Commission publishes commitments offered by an energy operator to resolve two outstanding investigations under Article 82 EC (E.ON)
Van Bael & Bellis (Brussels)
Belgium 191 contributions 65820 visits
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Practising Law Institute (New York)
United States 93 contributions 31420 visits
On 12 June 2008, the Commission adopted a press release announcing the beginning of market-testing for commitments offered by E.ON to resolve two outstanding investigations under Article 82 EC. The Commission previously welcomed the submission of such proposals on 28 February 2008. In the (...)

The OECD holds a roundtable on fidelity and bundled rebates and discounts
OECD - Competition Division (Paris)
France 313 contributions 1371884 visits
Executive summary, by the Secretariat From the issues paper, the country submissions, and the discussion at the roundtable on 10 June 2008, the following points emerge: (1) In a “bundled” discount, a combination of products is offered at a lower price than the sum of the prices of the (...)

A Lithuanian District Administrative Court upholds the Lithuanian NCA’s infringement decision on unfair pricing in the underground communications tunnels sector (Vilniaus Energija v Competition Council)
Lithuanian Competition Authority (Vilnius)
Lithuania 28 contributions 102857 visits
On 2 June 2008 the Vilnius District Administrative Court (the “VDAC” or the “Court”) rejected an appeal brought by UAB Vilniaus Energija (the “VE”) against the Competition Council’s infringement decision fining the appellant for unfair pricing practices. In the original infringement decision (...)

Mergers

 The German Federal Cartel Office clears the merger of two large retail chains of discount food stores subject to the divestiture of a large number of discount stores (Tengelmann/EDEKA)
Humboldt University (Berlin)
Germany 6 contributions 12619 visits
The operation On 28 December 2008, EDEKA and Tengelmann notified the German Federal Cartel Office (FCO) of their intention to merge their food discount chains Netto-Marken Discount (“Netto”) and Plus Warenhandelsgesellschaft mbH (“Plus”). EDEKA is Germany’s largest food retailer and owned (...)

The German Federal Cartel Office clears a high profile merger between two German food discount retail chains subject to conditions (EDEKA/Tengelmann)
Freshfields Bruckhaus Deringer (Berlin)
Germany 31 contributions 121118 visits
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Freshfields Bruckhaus Deringer (Berlin)
Germany 17 contributions 71163 visits
On 30 June 2008, the German Federal Cartel Office (FCO) cleared a merger between two German food discount retailers, subject to divestiture conditions . A high-profile case On 28 December 2007, the German retail giants EDEKA Zentrale AG & Co. KG (EDEKA) and Tengelmann (...)

The EU Commission conditionally clears an acquisition in the chemicals production industry (Hexion / Huntsman)
JG Associates (Brussels)
193 contributions 63248 visits
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European Commission - DG COMP (Brussels)
Belgium 148 contributions 49909 visits
Mergers: main developments between 1 May and 31 August 2008* In July the proposed acquisition of Huntsman Corporation by Hexion Specialty Chemicals Inc. was approved subject to conditions. Both parties to the transaction are US-based chemical manufacturers Hexion, which is owned by the (...)

The EU Commission conditionally clears an acquisition in the tobacco industry (British American Tobacco / Skandinavisk Tobakskompagni)
JG Associates (Brussels)
193 contributions 63248 visits
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European Commission - DG COMP (Brussels)
Belgium 148 contributions 49909 visits
Mergers: main developments between 1 May and 31 August 2008* In June conditional approval was given to British American Tobacco’s (BAT) proposed acquisition of the cigarette business together with certain roll-your-own tobacco and ‘snus’ (a type of oral tobacco) interests of the Danish (...)

The Portuguese Competition Authority clears the acquisition of a port’s bulk liquid terminal business, further to an in-depth investigation on the impact of such operation in the fuels market at national level (Galp/Sines Bulk Liquid Terminal)
Gómez-Acebo & Pombo (Lisbon)
Portugal 10 contributions 39570 visits
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Uria Menéndez (Lisbon)
Portugal 3 contributions 4460 visits
On 26 June 2008, the Portuguese Competition Authority (hereinafter, the “AdC”) adopted a merger control decision in accordance with Law 18/2003 of 11 June (the Portuguese Competition Law), which approved the proposed acquisition by GALP Group (“GALP”) of the Port of Sines’ bulk liquid terminal (...)

The Portuguese Competition Authority conditionally clears the acquisition of sole control over the rights to exploit hydroelectric power stations (EDP / EDIA)
Cuatrecasas (Lisbon)
Portugal 11 contributions 23368 visits
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Entidade Nacional para o Mercado dos Combustíveis, E.P.E. (Portuguese National Entity for Fuel Market)
Portugal 2 contributions 3896 visits
On 14 January 2008, EDP notified the Competition Authority (“AdC”) of the acquisition of sole control over the rights held by EDIA to exploit Alqueva and Pedrógão hydroelectric power stations. Through this transaction, EDIA assigned to EDP the rights it had been conferred upon by the (...)

The Italian Competition Authority amends behavioural remedies previously imposed in a concentration between two major Italian air carriers (Alitalia / Volare)
Municipality of Cagliari
167 contributions 133140 visits
The Italian Competition Authority (ICA) has recently revised and modified the commitments it imposed for the approval of the 2006 concentration between two major Italian air carriers, Alitalia and Volare. The ICA conditionally cleared the transaction by requiring Alitalia to release the (...)

The EU Commission conditionally clears an acquisition in the market for production and distribution of TV programs, TV satellite and cable broadcasting (News Corp / Premiere)
JG Associates (Brussels)
193 contributions 63248 visits
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European Commission - DG COMP (Brussels)
Belgium 148 contributions 49909 visits
Mergers: main developments between 1 May and 31 August 2008* In June a conditional approval was granted to the proposed acquisition of Germany’s pay-TV operator Premiere AG by News Corporation (News Corp) of the US. The approval was granted subject to commitments which would ensure third (...)

The EU Commission clears an acquisition in the retail and wholesale markets for everyday consumer goods (Rewe Group / ADEG)
JG Associates (Brussels)
193 contributions 63248 visits
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European Commission - DG COMP (Brussels)
Belgium 148 contributions 49909 visits
Mergers: main developments between 1 May and 31 August 2008* In June the Commission approved the proposed takeover of ADEG of Austria by the German REWE Group, subject to conditions. Both parties were active on the Austrian retail and wholesale markets for everyday consumer goods. The (...)

The Polish National Competition Authority clears with remedies a merger in the cinema sector (Multikino / Silver Screen)
White & Case (Warsaw)
Poland 4 contributions 5391 visits
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SAS Institute (Warsaw)
Poland 1 contribution 2109 visits
This article considers the possible precedent set by the Chairman of the OCCP’s decision, dated 20 June 2008, clearing the takeover by Multikino of the Silver Screen companies, operators of movie theaters, subject to a condition preventing Multikino from opening a new movie theater (decision (...)

The US FTC dismisses merger challenge after parties publicly announced to abandon the proposed acquisition in the healthcare industry (Inova / PWHS)
Skadden, Arps, Slate, Meagher & Flom (Washington)
United States 30 contributions 9467 visits
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Skadden, Arps, Slate, Meagher & Flom (New York)
United States 18 contributions 9017 visits
Inova Health System Foundation (Inova) and Prince William Health System, Inc. (PWHS) announced today that they will abandon their proposed merger. This announcement comes after the Federal Trade Commission sought to preliminarily enjoin the merger so that it could conduct a “Fast Track” (...)

The US DoJ requires the sale of copies of three databases before approving a merger in the financial data sector (Thomson / Reuters)
US Federal Trade Commission (FTC) (Washington)
United States 2 contributions 715 visits
Despite the presence of a number of competitive overlaps and a nine– month investigation by the Antitrust Division of the U.S. Department of Justice (“DOJ”), after agreeing to sell copies of three databases in the U.S., Reuters Group PLC (Reuters) and The Thomson Corporation (Thomson) (...)

The EU Commission conditionally clears an acquisition in the insurance sector (Vienna Insurance Group / Erste Bank)
JG Associates (Brussels)
193 contributions 63248 visits
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European Commission - DG COMP (Brussels)
Belgium 148 contributions 49909 visits
Mergers: main developments between 1 May and 31 August 2008* On 17 June the Commission decided to approve, subject to conditions, the proposed acquisition by Vienna Insurance Group (VIG) of the insurance subsidiaries of Austria’s Erste Bank. Vienna Insurance Group is an international (...)

The Swedish Competition Authority issues a draft decree on the notification of concentrations in view of entering into force of the new Competition Act
Swedish Competition Authority (Stockholm)
Sweden 4 contributions 11053 visits
On 12 June 2008, the Swedish Parliament approved the new Competition Act (hereinafter the “Competition Act“) which will enter into force on 1st November 2008. The Competition Act introduces various amendments in the area of merger control which aim at making the procedures under the (...)

The Turkish Competition Authority approves a joint venture in the construction services market (Goldman Sachs / TAV Yatýrým Holding)
Erdem & Erdem (Istanbul)
Turkey 67 contributions 75782 visits
In its decision dated 12 June 2008 and numbered 08-39/513-188, Turkish Competition Board (hereinafter referred as “Board”) unconditionally cleared the creation of a joint venture between Goldman Sachs International Bank (hereinafter referred as “Goldman Sachs”) and TAV Yatýrým Holding A.Þ. by (...)

The Hungarian Competition Office clears with conditions the acquisition of press logistics company by JV of magazine publishers (Ringier Kiadó / Népszabadság / Sanoma Budapest / MédiaLog)
Lakatos, Köves (Budapest)
Hungary 35 contributions 47184 visits
Magyar Előfizetői Vagyonkezelő Kft. ("MEV"), a Hungarian JV owned by the Ringier group (including the Hungarian daily Népszabadság) and the Sanoma group, acquired from F-Log AG 51 per cent of the shares of MédiaLog Zrt. ("MédiaLog"), which is one of the two major magazine distributors in (...)

The French National Competition Authority clears in Phase II with behavioural remedies a merger in the rolling shutters sector and gives its assessment of conglomerate effects (Somfy / Zurflüh-Feller)
European Commission - DG COMP (Brussels)
Belgium 3 contributions 11414 visits
Introduction After an in-depth phase II investigation, on 12 June 2008 the French Minister for Economy, Indutry and Employment (hereafter, the MinisterMinister), cleared the acquisition of Zürfluh-Feller by Somfy. Both companies are active on the market for accessories to construct rolling (...)

The French Minister of Economics conditionally clears a conglomerate merger in the sector of component for rolling shutters aimed at preventing "mixed" bundling and technical tying (Somfy / Zurflüh-Feller)
French Competition Authority (Paris)
France 83 contributions 290893 visits
The operation In this case, the Minister cleared the acquisition of Somy and Zurflüh-Feller with remedies. Both companies are manufacturing components for shutters, with strong market shares, but small horizontal overlaps, each company being specialised in different components. The (...)

The Norwegian Competition Authority approved a merger in the retail grocery sector subject to the condition that the acquirer offers a competitor the opportunity to buy or rent one of the merged group’s two stores in a specific area (Rema 1000 / Lidl)
Bull Årstad (Stavanger)
15 contributions 32123 visits
The operation Rema 1000 notified the Norwegian Competition Authority (NCA) of its acquisition of Lidl Norge (Lidl) on 14 March 2008. In March 2008 Rema 1000 had 409 retail grocery stores in Norway and Lidl had 50 retail grocery stores in Norway. The market(s) concerned by remedy(ies) (...)

The EU Commission conditionally clears a merger in the paper production sector (Arjowiggins / M-Real Zanders’ Reflex paper mill)
JG Associates (Brussels)
193 contributions 63248 visits
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European Commission - DG COMP (Brussels)
Belgium 148 contributions 49909 visits
Mergers: main developments between 1 May and 31 August 2008* In June the Commission approved the proposed takeover of the Reflex paper production mill in Germany that currently belongs to the Finnish paper manufacturer M-Real, by the French paper manufacturer Arjowiggins, subject to (...)

The French Minister of Economy approves without remedies, a concentration in the sector of agricultural cooperatives despite high market shares on several markets (Agrial / Union Set)
Darrois Villey Maillot Brochier (Paris)
France 23 contributions 92564 visits
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Moskvina Law
United States 7 contributions 25002 visits
Agrial is an agricultural cooperative with over 24,000 members. Union Set is another agricultural cooperative with nearly 16,000 members. The concentration results in overlaps in the following markets : the sale of live animals for laughter; retail of hardware, gardening and landscaping tools (...)

The Latvian Competition Authority clears a merger in the roadworks sector subject to behavioural remedies relating to procurement and non-discrimination obligations (A.C.B. / 8 CBR)
Cobalt Legal (Riga)
Latvia 24 contributions 43723 visits
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Cobalt Legal (Riga)
Latvia 20 contributions 35512 visits
On 2nd June 2008, the Latvian Competition Council adopted a decision conditionally clearing the acquisition of control over AS 8 CBR (hereinafter “8 CBR”) by AS A.C.B. (hereinafter “A.C.B.”) notified on 21st December 2007. A.C.B. is a joint stock company active in construction and (...)

The Latvian Competition Authority conditionally clears a merger in the sector of construction (A.C.B. SIA / 8 CBR AS)
Cobalt Legal (Riga)
Latvia 24 contributions 43723 visits
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Cobalt Legal (Riga)
Latvia 20 contributions 35512 visits
The operation On 21 December 2007 the Competition Council received a notification of A.C.B. SIA (A.C.B.) and 8 CBR AS (8 CBR) regarding a proposed transaction whereby A.C.B. would acquire the shares of 8 CBR and thus also decisive influence over it. (Section 1) The market(s) The relevant (...)

The Portuguese Competition Authority clears the acquisition of a port’s bulk liquid terminal business, further to an in-depth investigation on the impact of such operation in the fuels market at national level (Galp/Sines Bulk Liquid Terminal)
Gómez-Acebo & Pombo (Lisbon)
Portugal 10 contributions 39570 visits
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Uria Menéndez (Lisbon)
Portugal 3 contributions 4460 visits
On 26 June 2008, the Portuguese Competition Authority (hereinafter, the “AdC”) adopted a merger control decision in accordance with Law 18/2003 of 11 June (the Portuguese Competition Law), which approved the proposed acquisition by GALP Group (“GALP”) of the Port of Sines’ bulk liquid terminal (...)

State Aid

 The Austrian Constitutional Court rules that the beneficiaries of unlawful State aid cannot rely on a legitimate expectations to resist the recovery (ÖkostromG)
University of Vienna
Austria 5 contributions 12659 visits
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Peter Thyri Competition Counseling Research (Vienna)
Austria 5 contributions 12659 visits
Factual Background The judgment concerns a review of the constitutionality of the Austrian Ökostromgesetz of 2002 (ÖkostromG) in an appeal over reimbursement of additional cost for CHP electricity production provided for in that law. Reimbursement is subject to a number of criteria under the (...)

The EU General Court partly annuls Commission’s decision declaring State aid for air transport losses connected with the New York terrorist attacks incompatible with the common market (Olympiaki Aeroporia Ypiresies)
Van Bael & Bellis (Brussels)
Belgium 153 contributions 33980 visits
On 25 June 2008, the Court of First Instance (hereinafter the “CFI”) annulled in part the Commission decision declaring certain aid granted to a Greek airline as compensation for losses resulting from the events of 11 September 2001 incompatible with the common market. The CFI held, in (...)

The French Court of Appeal for Basse-Terre holds that third parties cannot request a national court to statute on the alleged incompatibility of a State aid measure but confirms national courts’ jurisdiction for claims for damages (Primistères Reynoird)
Sheppard Mullin (Brussels)
France 396 contributions 672998 visits
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European Court of Justice (Luxembourg)
France 65 contributions 116230 visits
Factual Background The society Primistères Reynoird imports goods from the continental part of France and other Member States of the European Union to Guyana and paid the levies in relation to the dock dues and an additional tax for the period between 1 October 1991 and 31 December 1992. (...)

The Dutch State Council considers the preferential treatment of a company, which exploits an airport by the construction of the enlargement of the airport, to be illegal State aid (Municipality of Haren)
Adyen (Amsterdam)
Netherlands 17 contributions 39994 visits
Factual Background In 2001 the Minister of Transport and Water Management amended the decree pursuant to which the airport in Eelde was designated an airport. The amendments concern the length of the runway and the maximum noise pollution. As a result of the changes bigger airplanes were (...)

The Austrian Supreme Court rules that an advantage is qualified as an existing State aid measure under a Art. 87 EC would be considered permissible as long as the EU Commission agreed (Newspaper cross-financing / Wiener Zeitung II)
Salzburg University
Austria 8 contributions 23733 visits
On 10 June, 2008, the Austrian Supreme Court ruled that the view according to which an advantage that may qualify as an existing state aid measure under Article 87 EC may be considered permissible as long as the Commission has not declared this advantage as being incompatible with the Common (...)

The Austrian Supreme Court rules that a system of official inserts in a newspaper is not subject to prohibition of implementation and does not violate the national act against unfair competition (Die Presse)
University of Vienna
Austria 5 contributions 12659 visits
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Peter Thyri Competition Counseling Research (Vienna)
Austria 5 contributions 12659 visits
Factual Background “Die Presse” is a privately held Austrian daily newspaper. “Wiener Zeitung” (WZ), a private company owned by the Austrian Government, is a daily newspaper with an official insert used by the Austrian Government to publish formal announcements such as newly passed laws, (...)

The Dutch Court of Appeal rules that granting GSM frequencies to two mobile operators for no consideration is not a form of unlawful State aid (Orange Nederland)
Adyen (Amsterdam)
Netherlands 17 contributions 39994 visits
Factual Background On 1 September 1994, the Dutch Act on Telecommunication Services (Wet op de Telecommunicatievoorzieningen) came into force, implementing Directive 87/372/EEC of 25 June 1987. On the basis of this Directive, all Member States agreed to allocate frequencies to (digital) (...)

The Finnish Supreme Administrative Court upholds the Administrative Court’s decision and rules that a small-scale activity does not affect the competition circumstances to the extent that it could be regarded as constituting State aid (Ylä-Savo Board)
Dittmar & Indrenius (Helsinki)
Finland 10 contributions 31066 visits
Factual Background The applicants were private entrepreneurs operating a driving school business in Eastern Finland. As a result of an amendment of the Decree on Driving Licenses (Ajokorttiasetus, statute number 433/1996), driving instruction for heavy articulated vehicles and buses required (...)

Procedures

 The Spanish Competition Authorities approves recommendations for the Spanish public authorities in relation to the competition rules and informs of some of its priorities for the future
DG TRADE (Brussels)
Belgium 30 contributions 119533 visits
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Garrigues (Brussels)
Belgium 28 contributions 104344 visits
Summer months have been particularly quiet in Spain in terms of private and public antitrust enforcement. With extra time to reflect, the brand new unified Spanish Competition Authority (Comisión Nacional de Competencia, hereinafter “CNC”) has decided to use its powers under Article 26 of the (...)

The Swedish Parliament adopts a new Competition Act
Court of First Instance of Namur (Namur)
Belgium 224 contributions 46627 visits
On 12 June 2008, the Swedish Parliament adopted a new Competition Act, which is said to give the current Swedish Competition Act of 1993 a “thorough facelift”. According to a press release from the Swedish Competition Authority, the new rules will bring Swedish competition law more closely (...)

The UK Competition Authority issues first criminal conviction under the Enterprise Act 2002 following successful cooperation with the US DoJ (Marine Hoses Cartel)
The Bar of Ireland - The Law Library
Ireland 3 contributions 7044 visits
1. Summary On 11 June 2008, three UK businessmen were the first to be criminally convicted under the Enterprise Act 2002, since it came into force in 2003. After an eleven month investigation by the Office of Fair Trading (OFT), in cooperation with the US Department of Justice (DOJ), the men (...)

The Hungarian Parliament votes an amendment to the Competition Act introducing director disqualification, facilitating private damages actions, streamlining leniency policy and amending the substantive test applicable in merger control (T/5657)
Baker McKenzie (Budapest)
Hungary 17 contributions 36459 visits
An amendment of the Hungarian Competition Act passed by the Parliament on 3 June 2008 brings fundamental changes by introducing company director disqualification, facilitating private damages actions, streamlining leniency policy and amending the substantive test applicable in merger control. (...)

The French Commercial Supreme Court rules that the Competition Authority may not rely on unfairly obtained recordings as evidence (Sony / Philips)
Vogel & Vogel (Paris)
France 94 contributions 118883 visits
A small consumer electronics discount retailer brought an action before the Competition Council against some of its suppliers for vertical agreements made with their respective distributors. In support of the action, the retailer produced tapes containing the recordings of phone (...)

The EU Commission opens formal proceedings against a pharmaceutical company (Sanofi-Aventis)
Court of First Instance of Namur (Namur)
Belgium 224 contributions 46627 visits
On 2 June 2008, the European Commission announced that it has opened formal proceedings against Sanofi-Aventis SA in order to investigate a possibly illegal obstruction of a dawn raid carried out at the company’s premises during January 2008 as part of the pharmaceuticals sector inquiry. The (...)

The Hungarian Parliament adopts amendments to the Competition Act
Court of First Instance of Namur (Namur)
Belgium 224 contributions 46627 visits
On 2 June 2008, the Hungarian Parliament adopted amendments to the Hungarian Competition Act. The amendments will enter into force in September 2008. The most important modifications concern leniency, damages actions and merger control. The Hungarian leniency regime will be integrated in the (...)

The Montenegrin Ministry of Economic Development released nation’s first Strategy for Competition Policy (Strategija Politike Konkurencije)
University of Macau - Faculty of Law
China 284 contributions 224955 visits
The Law for Protection of Competition enforced from 1 January 2006 (as amended in 2007) prohibited anticompetitive agreements and concerted practices, abuse of dominant position and introduced a merger control system in Montenegro. Montenegrin Competition Authority - Administrative Competition (...)

Regulatory

 The French Competition Authority issues an opinion on retail and wholesale markets of fixed telephony (ARCEP)
French Competition Authority (Paris)
France 741 contributions 395062 visits
Press Release published on the official website of the French Competition Authority. The Conseil is favourable to reduce ex ante regulation on retail markets for fixed telephony.* The Conseil de la concurrence has just issued an opinion to the ARCEP (French regulator for electronic and (...)

The French Competition Authority issues an opinion on wholesale markets for high speed and very high speed
French Competition Authority (Paris)
France 741 contributions 395062 visits
Press Release published on the official website of the French Competition Authority. The Conseil de la concurrence considers that ex ante regulation is necessary given the importance of the issues relative to the deployment of fibre optics on wholesale markets for high speed and very high (...)

The OECD holds a roundtable on market studies
OECD - Competition Division (Paris)
France 313 contributions 1371884 visits
Executive summary, by the Secretariat Considering the discussion at the roundtable and the delegates’ submissions, several key points emerge. (1) Market studies are a wide-spread component of the work portfolios of competition agencies. Nearly every competition agency conducts market (...)