CASE COMMENTS: CARTELS – EUROPEAN UNION – FINE

Geographic allocation of market: The General Court of the European Union confirms the illegality of a geographic allocation clause contained in a sale deal between two telecoms operators, but reverses the Commission decision with respect to the determination of the fine (Portugal Telecom SGPS and Telefónica)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The two judgments handed down on 28 June 2016 relating to the Spanish and Portuguese telecommunications markets concern a non-competition clause inserted in an agreement between the two main telecommunications operators in Spain (Telefonica) and Portugal (Portugal Telecom, known as PT) on the divestiture of control of the Brazilian mobile network operator, Vivo. In the contract for the sale of the shareholdings in Vivo, the two telephone operators - poorly advised - inserted a clause worded as follows: "To the extent permitted by law, each Party shall refrain from participating or investing, directly or indirectly, through any subsidiary, in any project

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Anne-Sophie Choné-Grimaldi, Geographic allocation of market: The General Court of the European Union confirms the illegality of a geographic allocation clause contained in a sale deal between two telecoms operators, but reverses the Commission decision with respect to the determination of the fine (Portugal Telecom SGPS and Telefónica), 28 June 2016, Concurrences Nº 4-2016, Art. N° 82039, pp. 86-87

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