Competition journals: Oct. 2008 - Jan. 2009

1. General - Scope of application

Modernizing the economy... (Special file devoted to the law of modernization of the economy n° 2008-776 of August 4, 2008), D. BOSCO ET ALII (Contracts, conc., consom., nov. 2008, p. 8-38)

In this very complete dossier devoted to the "catch-all" law on the modernisation of the economy No. 2008-776 of 4 August 2008, the magazine’s regular columnists sift through all the provisions - scattered throughout the text - concerning competition law.

See also, Economic Modernization Act - Round Table with L. IDOT, B. LASSERRE & C. VILMART (Cah. dr. Entr., n° 4, July-August 2008, p. 9); Anticompetitive practices and merger control: overview of the reform, E. FLAICHER-MANEVAL, B. PHILIPPE & D. REDON (BRDA, 2008/24, n° 24, p. 11)

See also, on the "restrictive practices" section of the LME, La négociabilité des tarifs et des conditions de vente après la LME : quels garde-fousins ?, M. COUSIN (JCP éd. E, n° 43, 23 oct. 2008, 2288, p. 9) ; LME : l’ultime réforme des relations commerciales ?, N. GENTY, D. DELESALLE & E. DEBERDT (RLDA oct. 2008, n° 1893, p. 56) ; Loi de modernisation de l’économie : dispositions relatives aux relations industrie/commerce, J.-C. GRALL (RLC 2008-17, n° 1201, p. 34) ;

See also, on the "payment periods" section of the LME, Application dans le temps et dans l’espace de la LME sur la réduction des délais de paiement impératifs, L.-M. AUGAGNEUR (JCP éd. E, n° 45-46, 6 Nov. 2008, 2365, p. 20) ;

See also, with regard to Order No. 2008-1161 of 13 November 2008 on the modernisation of competition regulation, Naissance de l’Autorité de la concurrence: une réforme fondamentale mais inachevée, C. VILMART (JCP éd. E, No. 00, 00 Jan. 2008, Études, 000, p. 0); Mise en place de l’Autorité de la concurrence, G. NOTTE (JCP éd. E, No. 47, 20 Nov. 2008, Actualités, 505, p. 3) ;

Special file "Les Affaires Microsoft" (RLC 2008-17, No. 1243 sq., p. 127-201)

In this special 70-page dossier on Microsoft Business, practitioners and authors have examined all aspects of this iconic saga (NB: some of the articles have already been published). Thus, the reader can immerse himself at will in the analysis of the evolution of antitrust policy, the international competence of the Community or the interaction between competition law and intellectual property law. The special file focuses on the viewpoint of the complainants and their fundamental role in this case, but also on the viewpoint of the company in question, as Microsoft is for the first time expressing its views on the changes made by the company since the court decisions. The procedural aspects of the case, the penalties imposed and the consequences under contract law are also dissected.

Managing the financial crisis in Europe: why competition law is part of the solution, not of the problem, D. GERARD (GCP, the online magazine for global competition policy, Dec. 2008)

See also, from the same author, in this ConcurrencesN° 4-2008, a more detailed article on the same theme EC competition law enforcement at grips with the financial crisis: Flexibility on the means, consistency in the principles. In the GCP issue of Dec. 2008, see also the two other articles dedicated to the interactions between economic crisis and competition policies, How can national competition authorities mobilize in times of global crisis, B. LASSERRE ; The financial crisis and competition policy: some economics, J. VICKERS.

See also, on the same theme, La politique européenne de concurrence à l’heure de la crise, L. IDOT (Europe, Dec. 2008, Focus 59, p. 2); Le droit communautaire et la crise du "subprime", F. BRUNET (Les Echos, 22 Oct. 2008, p. 13); Crise : l’Europe doit accepter plus d’aides d’État, D. DE BECHILLON (Les Echos, 20 Oct. 2008, p. 12)

Vertical competition, horizontal competition, and market power, R. L. STEINER (Antitrust Bulletin, Summer 2008, Vol. 53, Issue 2, p. 251)

See also, in the same issue devoted entirely to buyer market power, Defining buyer power, Z. CHEN (p. 241) and Buyer power, competition policy, and antitrust: the competitive effects of discrimination among suppliers, P. CARSTENSEN (p. 271).

An analysis of price-based tests of antitrust market delineation, P. J. COE & D. KRAUSE (Journal of Competition Law and Economics, 2008, Vol. 4, Issue 4, p. 983).

See also, in the same issue, A practical guide to the hypothetical monopolist test for market definition, M. B. COATE & J. H. FISCHER (p. 1031).

La stratégie à l’heure de l’hyper-competition, S. ÉDOUARD (Problèmes économiques 24 déc. 2008, n° 2961, p. 44)

The design of competition policy institutions for 21st century - the experience of the European Commission and DG Competition, P. LOWE (Competition Policy Newsletter, 2008, No. 3, p. 1).

Law and Economics, an idiotic science, A. BERNARD (D. 2008, n° 40, Chron., p. 2806)

La délicate application des règles du droit de la concurrence à l’exploitation des droits de propriété intellectuelle, A. ABELLO (Revue Lamy Droit de l’immatériel, oct. 2008, n° 42, p. 30)

Information exchange and competition in communication networks, C. CAMBINI & T. M. VALLETTI (The Journal of Industrial Economics, Dec. 2008, Vol. LVI, Issue 4, p. 707)

Les politiques de concurrence sur les marchés électriques, U. DUBOIS (Revue de l’énergie, sept.-oct. 2008, n° 5852, p. 293)

Activity of the Community courts in competition law (September 2008), P. ARHEL (Petites affiches, 19 Nov. 2008, No 232, p. 3)

Chronique Concurrence, L. IDOT (Europe, Oct. 2008, comm. 327 to 333, p. 29; Nov. 2008 , comm. 377 to 383, p. 37; Dec. 2008, comm. 420 to 426, p. 23)

Chronique Droit de la Concurrence, L. IDOT & C. PRIETO (DRC Jul. 2008, p. 791)

Chronique Concurrence, M. BAZEX G. DECOCQ, M. MALAURIE-VIGNAL & D. BOSCO (Contrats, conc., consom oct. 2008, comm. 232 to 246, p. 20; nov. 2008 , comm. 258, p. 42, dec. 2008, comm. 273 to 277, p. 31)

Chronique de droit économique, C. ANADON (RLDA nov. 2008 , n° 1940 à 1950, p. 46, déc. 2008, n° 1999 à 2009, p. 42)

Competition Chronicle (RJDA, Nov. 2008, p. 1147; Dec. 2008, p. 1257)

2. Agreements

2.1. General

AC-Treuhand AG v. Commission, A. DAWES judgment (RDUE, 3/2008, Jurisp., p. 632)

2.2. Distribution

Who wants the skin of the online resale? Selective distribution of cosmetics on the Internet, C. MANARA (D. 2008, n° 41, Actualité jurisprudentielle, p. 2862)

In this article, Cédric Manara discusses the decision n° 08-D-25 issued by the French Competition Council on October 29, 2008 in the Pierre Fabre Dermo-Cosmétique case, a decision that is instructive and in many ways questionable. Beyond even the condemnation, following an overly mechanical reasoning that exempts the Council from having to examine the real effects of the practice, of the prohibition imposed by a manufacturer on its authorized distributors from reselling over the Internet, this decision, which was handed down to the litigation department after another decision was adopted in the same case but in the context of the commitments procedure, raises questions as to the real scope of the commitments decisions. In other words, what are the chances of a company that does not wish to submit to a commitment procedure winning the case in the litigation when, in the same case, the other companies have accepted the commitment procedure? Very slim indeed when one considers that the guidelines envisaged by the Council before adopting a commitment decision are well thought out. It should be remembered in this connection that the Council is required, when applying Articles 81 or 82 EC, to inform the Commission of the guidelines it intends to adopt in such decisions, including commitment decisions. Under these circumstances, how can it be imagined that, on a question as essential as the ban on resale on the Internet within a selective distribution network, the Council, albeit composed in a different way, could contradict a position taken in the form of commitments? This observation certainly leads us to take a completely different view of the scope of decisions to give commitments...

See also, Distribution sélective et vente par internet (BRDA 21/08, No. 23, p. 11) ; Il est interdit d’interdire le commerce en ligne à ses revendeurs agréés !, M. CHAGNY (Comm. com. électr., déc. 2008, comm. 137)

What legal future for car distribution, J. VOGEL (RLDA, Dec. 2008, No. 2012, p. 55)

See also, for a cross-check, Observations on the Commission’s evaluation report on exemption Regulation 1400/2002, C. BOURGEON (RLDA, Dec. 2008, No. 2013, p. 595).

See also, Intervention and the internal market: contemporary European initiatives concerning distribution in the market for new cars, P. MARSDEN & P. WHELAN (European Competition Journal, Dec. 2008, Vol. 4, Issue 2, p. 485).

Exclusive dealing intensifies competition for distribution, B. KLEIN & K. MURPHY (Antitrust L. J., 2008, Vol. 75, Issue 2, p. 433)

The path forward after Leegin: seeking consensus reform of the antitrust law of vertical restraints, W. S. GRIMES (Antitrust L. J., 2008, Vol. 75, Issue 2, p. 467).

Consolidation of the analysis and treatment of relations between principal and agent under antitrust law (note ss. ECJ, 3rd c., 11 Sept. 2008, case C-279/06, CEPSA Estaciones de servicio SA v LV Tobar e Hijos SL), E. DIENY (JCP éd. E, n° 49, 4 Dec. 2008, 2470, p. 24).

Chronique Distribution, M. MALAURIE-VIGNAL & N. MATHEY (Contracts, conc., consommation Oct. 2008, comm. 227 to 231, p. 18; Dec. 2008, comm. 268 to 272, p. 26)

A year of legal news in franchise law (Petites affiches, special issue, Dec. 4, 2008, No. 243, p. 2-95)

3. Abuse of dominance

Parallel trade in medicines and abuse of dominant position (note ss. ECJ, Grand ch., 16 Sept. 2008, cases C-468/06 to C-478/06, Sot. Lélos kai Sia), L. IDOT (Europe, Nov. 2008, Comm. 381, p. 39).

See, on this judgment and the judgment of the CFI of 27 September 2006 (Glaxo I), Commerce parallèle et produits pharmaceutiques - Premières leçons des deux arrêts Glaxo, D. WAELBROECK & J. FIGUS DIAZ (JDE, Nov. 2008, n° 153, p. 269) and for a broader jurisprudential vision on the same sector, Parallel trade and pharmaceutical R&D: the pitfalls of the rule of reason, C. DESOGUS (ECLR, Nov. 2008, Vol. 29, Issue 11, p. 649).

Rejection of the abuse of a dominant position by predatory pricing against Glaxo, B. DULOUM (JCP éd. G, n° 51-52, Dec. 17, 2008, II, 10209, p. 38)

Communication from the Commission on the application of Article 82 EC to exclusionary abuses of dominant position, P. ARHEL (JCP éd. E, n° 51-52, 18 Dec. 2008, News, 561, p. 3)

Yes to exclusive broadcast exclusivity for catch-up television, Mr. CHAGNY (Elect. Com. Comm., Nov. 2008, Comm. 127)

Protection of investments in European abuse of dominance cases, A. TOTH (ECLR, Dec. 2008, Vol. 29, Issue 12, p. 710)

Exclusive contracts and article 82 enforcement: an effects-based perspective, D. RIDYARD (European Competition Journal, Dec. 2008, Vol. 4, Issue 2, p. 579).

4. Restrictive practices

La mutation du droit des implantations commerciales, J.-F. JOYE (Petites affiches, 22 oct. 2008, n° 212, p. 4)

The law of 4 August 2008 on the modernization of the economy reforms the framework of commercial establishments by modifying the legislation on trade and town planning. However, it leaves incomplete the process of integrating commercial urban planning into general urban planning. In addition to the revision of the legislation on commercial equipment, which has been purged of provisions that are dubious with regard to Community competition law, the law increases the treatment of trade in town planning documents. It also increases the use of the right of pre-emption for commercial land and property and improves the operation of the Fisac.

See also, Entrée en vigueur de la réforme de l’urbanisme commercial (BRDA, 2008/23, n° 23 p. 12); LME : la réforme de l’urbanisme commercial, N. GAUTIER (RLDA nov. 2008, n° 1939, p. 40); Loi de modernisation de l’économie et autorisations d’exploitation commerciale : une réforme inachevée, S. MARCHAT & M. MEBAREK (Cah. dr. entr. nov.- déc. 2008, n° 64, p. 57)

Implications of the deletion of Article L. 442-6, I, 1°, of the Commercial Code and the introduction of the notion of "significant imbalance" by the LME, M. PICHON DE BURY & C. MIMET (Contrats, conc., consom déc. 2008, Etudes, 13, p. 13)

See also, Entre droit spécial et droit commun: l’article L. 442-6, I, 2° du code de commerce F. BUY (Petites affiches, 17 Dec. 2008, No. 252, p. 3)

Concerning the action taken by the Minister of the Economy (art. L. 442-6, III, c. com.) - Some observations from the legal teratology order (note ss. Cass. com. 8 Jul. 2008, No. 07-16.761), M. BANDRAC (D. 2008, No. 43, Études et commentaires, p. 3046)

Le régime juridique allemand des contrats d’affiliation et de référencement : une interrogation, F. KUTSCHER-PUIS (Rev. jurispr. com., 5/2008, Études, p. 349)

LME and supplier-distributor relations in the pharmaceutical sector, V. LEFEBVRE-DUTILLEUL & P. MOTTIER (RLDA, Dec. 2008, n° 1998, p. 39)

5. Concentrations

Date of entry into force of the new merger control regime, E. FLAICHER-MANEVAL & B. PHILIPPE (BRDA, 2008/23, No. 25, p. 21).

In this brief note, Elisabeth Flaicher-Maneval and Benoît Philippe summarize the difficulties that arose from the practitioners’ point of view when merger control was transferred from the Minister to the Competition Authority. On what date did the new control regime come into effect? To which authority was it agreed to notify concentrations before 13 January 2009, the date of the first meeting of the Competition Authority? These are the questions that the authors attempt to answer.

Assessment of mergers inducing coordinated effects in the presence of explicit collusion, I. KOKKORIS (World Competition, Dec. 2008, Vol. 31, Issue 4, p. 499)

Alive and kicking: collusion theories in merger analysis at the Federal Trade Commission, M. B. COATE (Competition Policy International, Autumn 2008, Vol. 4, Issue 2, p. 145).

6. State aid

The General Block Exemption Regulation (GBER): bigger, simpler and more economic, H. NYSSENS (Competition Policy Newsletter, 2008, No. 3, p. 12).

New paradigm for recovery of unlawful aid in the EU - National judge and the "exception of compatibility", B. CHEYNEL & A. GIRAUD (World Competition, Dec. 2008, Vol. 31, Issue 4, p. 557)

Athinaïki techniki v. Commission, J. FIGUS-DIAZ (EDRUE, 3/2008, Jurisp., p. 627).

Chronopost SA and La Poste / UFEX and Others judgment, R. K. WAGNER (RDUE, 3/2008, Jurisp., p. 619)

La réglementation de l’aide à la modernisation des fleets (note ss. CAA Douai, 19 June 2008, M. Claeys), J. LEPERS (AJDA, 37/2008, Chron., p. 2046)

A regional subsidy for the creation of crèches is not State aid (Conclusions of the Government Commissioner ss. TA Versailles, 27 June 2008, Société Tout petit monde), P. GRIMAUD (AJDA, 38/2008, Actualité jurisprudentielle, p. 2121)

L’application de l’interdiction communautaire des aides d’État aux mesures fiscales françaises, A. RAMEIX (Contrats, conc., consom., oct. 2008, Focus, 56, p. 2)

La prise en compte des autonomies locales dans la qualification d’aide d’État (note ss. CJCE, 11 Sept. 2008. Case C-428/06, UGT Rioja), J.-P. KOVAR (D. Adm., No. 12, Dec. 2008, p. 38)

7. Public sector and competition

Actualité du droit de la concurrence et de la régulation, L. RICHER, P.-A. JEANNENEY & S. NICINSKI (AJDA, 29 Sept. 2008, Studies, p. 1748 and AJDA, 15 Dec. 2008, Studies, p. 2312)

Chronique Concurrence : interventions économiques des personnes publiques, M. BAZEX, F. ROLIN & P. SUBRA DE BIEUSSES (Contrats, conc., consom., déc. 2008, chron., 5, p. 17)

Law n° 2008-735 of 28 July 2008 on partnership contracts: a decisive step in the "plan to stimulate public-private partnership", F. BRENET & F. MELLERAY (RJEP, n° 658, Nov. 2008, p. 3)

Reform of partnership contracts: mixed convergence of PPP modes, B. MARTOR (D. Adm., n° 11, Nov. 2008, p. 15)

La mise en concurrence des concessions hydrauliques, O. SACHS (RJEP, n° 659, Dec. 2008, p. 1)

Entitlement under Community law to a unilateral delegation of public service. Commentary on the EC judgment, 25 July 2008, FNAM and SCARA, F. LENICA (RJEP, no. 659, Dec. 2008, p. 24).

8. Procedures

8.1. General

The new mechanism, resulting from the LME, applicable to visits and seizures carried out by the agents of certain administrations, H. MATSOPOULOU (D. 2008, n° 40, studies and comments, p. 2814)

See also, Repression of economic offences: searches and seizures (BRDA 22/08, 30 November 2008, No. 24, p. 11).

Community competition rules and public order: the old quarrel revisited by the French Court of Cassation, D. GRISAY (JDE, Déc. 2008, n° 154, p. 299)

The CFS, dispute settlement and free competition - From the extensive application of a limited jurisdiction in the decision of 8 July 2008, C. GRYNFOGEL (JCP éd. E, n° 47, 20 Nov. 2008, 2394, p. 42)

Confidentiality and disclosure in European antitrust proceedings - The case for clarity, R. CARLTON, J. LAWRENCE & M. MC ELWEE (European Competition Journal, Dec. 2008, Vol. 4, Issue 2, p. 401)

8.2. Sanction Policy - Clemency - Settlement - Undertakings

Adoption by the ECA of principles concerning monetary penalties in competition law, J.-C. RODA (Contracts, conc., consom., nov. 2008, Focus, 64, p. 3)

The White Paper on Damages actions for breach of the EC antitrust rules, P. MATTERA (RDUE.2- 2008, p. 348)

La compliance ou le rôle moteur du droit dans la stratégie de l’entreprise), O. CHAMBAUD (Petites affiches, 22 Dec. 2008, No. 255, p. 4)

A new procedure for drawing up public law rules: commitments before the Competition Council, M. BAZEX & S. BLAZY (D. Adm., n° 11, Nov. 2008, p. 33)

The law and practice of commitments decisions: a comparative analysis, A. PERA & M. CARPAGNANO (ECLR, Dec. 2008, Vol. 29, Issue 12, p. 669).

How lenient is the EC leniency policy? A matter of certainty and predictability, P. BILLIET (ECLR, Dec. 2008, Vol. 30, Issue 1, p. 1)

See, in the same issue, Carrots and sticks - Leniency and fines in EC cartel cases, D. J. WALSH (p. 30).

9. Regulations

The Court of Justice condemns the "anti-E.On" decree adopted by the Spanish Government, F. DONNAT (RJEP, No. 658, Nov. 2008, p. 19)

The author returns to the high-profile E.On/Endessa case by commenting on the ECJ’s judgment of 17 July 2008. The European Commission had brought an infringement action against Spain before the ECJ and found that Spanish legislation making the acquisition of a shareholding in a Spanish company carrying out regulated activities in the energy sector subject to prior authorization was incompatible with Community law. The Court held that the prior authorisation of the National Energy Commission constituted a restriction on the free movement of capital on the one hand and on the freedom of establishment on the other, and dismissed, as justification for the adoption of that legislation, the argument of security of supply. According to the Court, that objective could not be apprehended at the time the authorisation was issued and the Spanish Government still retained the power to impose public service obligations on undertakings in the sector in order to guarantee that security of supply.

How can equality and discrimination be reconciled in the determination of electricity utility tariffs, M. BAZEX & S., M. BAZEX & S. BLAZY (D.Adm., n°11, Nov. 2008, p. 31)

Commenting on the decision of the Council of State of 18 July 2008, the authors address a very interesting question, that of assessing discrimination against users in the payment of the regulated tariff of a public service, in this case the tariffs for the use of the electricity transmission network. The applicant, SNCF, argued that it suffered damage because it had to subscribe to a high power for the use of the transport network when it used it only very briefly. The Council of State dismisses the action and the discrimination. It points out that, in order to assess discrimination, account must be taken of the specific costs which the characteristics of a user’s use of the network may entail for the network operator, but considers, however, that discrimination could be upheld only if the difference in the way in which users bear the costs of the network is substantial.

Does Europe need a single European telecom regulator, L. DE MUYTER (European Competition Journal, Dec. 2008, Vol. 4, Issue 2, p. 561)

10. International policy

Chronique politiques de concurrence, N. JALABERT-DOURY, L. NOUVEL, D. LE MAREC, P. LE MORE & A. TERCINET (RDAI/IBLJ, 5/2008, p. 655)

This column is devoted to the analysis of international competition law news. As usual, issue 5/2008 covers not only the latest developments in EU competition law, but also in national laws, as well as international developments in the field. At Community level, it deals in particular with the evaluation report on the car exemption regulation, the Commission decisions on the international removals and sodium chlorate cartels, the ECJ judgments of 22 May 2008 on the methionine cartel and of 6 March 2008 condemning Spain in the E.ON/ Endesa case. There is also an item on national news with the cases of the UK Crown Court on the global marine pipe cartel, the Düsseldorf Court of Appeal on the admissibility of civil actions in the cement cartel and the Italian revision of the concentration thresholds. At the international level, the consultation on the Canadian leniency programme, the Norwegian merger control reform, the OECD Roundtables on Dynamic Efficiencies in Merger Analysis and on Unilateral Practices, also analysed by the ICN, are addressed. All these comments and many more are available online on the journal’s website at http://www.iblj.com/fr-0-10/afarticle-1/52008655-676/politiques_de_concurrence.html.

Extradition and mutual legal assistance treaties: cartel enforcement’s global reach, J. M. JOSUA, P. D. CAMESASCA & Y. JUNG (Antitrust L. J., 2008, Vol. 75, Issue 2, p. 353)

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