December 2018

General antitrust

The Angolan Government creates the Competition Regulatory Authority which replaces the Prices & Competition Institute
Vieira de Almeida (Lisbon)
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DLA Piper (Lisbon)
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Vieira de Almeida (Lisbon)
On 21 December 2018, Presidential Decree 313/18 approving the bylaws of the Angolan Competition Regulatory Authority (“CRA”) was published, putting in place the last piece of the Angolan competition law regime. The decree completes the Angolan Competition Act (“ACA”), of 10 May 2018, and the (...)

The Moroccan Government sees its new competition regime enter into force
Norton Rose Fulbright (Paris)
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Norton Rose Fulbright (Paris)
Introduction More than four years after the enactment of the new competition laws of June 2014, the new Competition Council, institutional cornerstone of the new regime, is finally active since all its members were appointed on December 17, 2018. The long awaited new antitrust and merger (...)

Anticompetitive practices

The Portuguese Competition Authority fines two insurance companies for market sharing (Fidelidade – Companhia de Seguros / Multicare – Seguros de Saúde)
Portuguese Competition Authority (Lisbon)
AdC imposes fines of €12 million on insurance companies for cartel settlement* The Portuguese Competition Authority (Autoridade da Concorrência – AdC) imposed fines in the total amount of €12 million on the insurers Fidelidade – Companhia de Seguros and Multicare – Seguros de Saúde for (...)

The Dutch Competition Authority opens an investigation concerning suspected price-fixing agreements between consumer-goods manufacturers and retailers
Netherlands Authority for Consumers & Markets- ACM (The Hague)
ACM investigates price-fixing agreements between consumer-goods manufacturers and retailers* The Netherlands Authority for Consumers and Markets (ACM) has launched an investigation into price-fixing agreements between consumer-goods manufacturers and retailers (including online retailers). (...)

The Brazilian Competition Authority and the Federal Court of Accounts of Brazil enter into a cooperation agreement to fight bid-rigging in public procurement
Hogan Lovells (Washington)
The Administrative Council for Economic Defense (Conselho Administrativo de Defesa Econômica – CADE) and the Federal Court of Accounts of Brazil (Tribunal de Contas da União – TCU), entered into a cooperation agreement on 27 December 2018 as part of a joint effort to fight violations of the (...)

The Portuguese Competition Authority fines an undertaking and its manager for bid-rigging in the railway maintenance services sector (Sacyr Neopul)
Portuguese Competition Authority (Lisbon)
AdC sanctions an undertaking and its manager for anticompetitive practices in the sector of railway maintenance services.* The AdC imposed fines totalling 365,400 euros on Sacyr Neopul S.A., and its production manager, for participating in a horizontal agreement (cartel) that resulted in (...)

The Portuguese Competition Authority confirms unannounced inspections in five locations of four telecommunications operators
Portuguese Competition Authority (Lisbon)
AdC confirms dawn raids in four telecommunications operators* The Portuguese Competition Authority (AdC - Autoridade da Concorrência) confirms that it carried out dawn raids have been carried out in five locations of four telecommunication companies, following suspicions of antitrust (...)

The Italian Competition Authority finds a cartel in the market for car hire purchase and imposes a record fine of €670 million (Banca / Banque PSA / Santander Consumer Bank / BMW Bank)
Municipality of Cagliari
In the Car Finance case the Italian Competition Authority (ICA) has levied a record-breaking fine of overall € 670 million on the participants to a secret cartel affecting the business sector of car hire purchase. The anticompetitive agreement was put in place by several car manufacturers, (...)

The Lithuanian Competition Authority fines 26 driving schools and the Lithuanian association of driving schools involved in a price fixing cartel
Lithuanian Competition Authority (Vilnius)
Driving schools agreed to fix prices of driving lessons* The Lithuanian competition authority Konkurencijos taryba found that 26 driving schools and the Lithuanian association of driving schools (Association) were involved in a cartel that set prices of driving lessons in three cities of (...)

The Danish Competition Authority finds two competing media owners have fixing prices in breach of Danish Competition Law (Clear Channel Danmark and AFA JCDecaux)
Danish Competition and Consumer Authority (Copenhagen)
Outdoor media owners illegally agreed to fix discounts for several years* The two competing media owners Clear Channel Danmark A/S and AFA JCDecaux A/S, who both sell advertising space in outdoor-media, agreed to common discounts in violation of the Danish Competition Act. Chairman of the (...)

The French Competition Authority fines several producers and wholesale distributors of liquid fertilizers for resale price maintenance (Canna France / GHE / Bertels / Biobizz / Hydro Factory / Hydro Logistique / CIS)
French Competition Authority (Paris)
The Autorité hands down fines for anticompetitive practices to several producers and wholesale distributors of liquid fertilisers.* Why are vertical pricing agreements forbidden in competition law? Competition law generally forbids horizontal (between competitors) and vertical agreements (...)

The EU Commission sends a statement of objection to four banks accused of collusion in the bond trading market
European Commission - DG COMP (Brussels)
Antitrust: Commission sends Statement of Objections in US Dollar supra-sovereign, sovereign and agency bond trading cartel* The European Commission has informed four banks of its preliminary view that they have breached EU antitrust rules by colluding, in periods from 2009 to 2015, to (...)

The Italian Competition Authority fines several automotive constructors for cartel agreements in the market of car sales through financing (Banca / Banque PSA / Santander Consumer Bank / BMW Bank)
Italian Competition Authority (Rome)
Car sales through financing: ICA sanctions cartel among leading operators imposing fines of over 670 million euros* On 20 December 2018, the Italian Competition Authority concluded an investigation launched against the leading captive banks and related automotive groups operating in Italy in (...)

The Hungarian Competition Authority fines four water welling companies for bid rigging (Vikuv Vízkutató és Fúró / Aquazit Szolgáltató...)
Hungarian Competition Authority (Budapest)
Total fine of more than 100 million forints imposed on well drilling companies for participation in a cartel* The Hungarian Competition Authority (Gazdasági Versenyhivatal, GVH) imposed fines amounting to a total of 105 million forints (0.33 million EUR) on four water welling companies for (...)

The Chinese Supreme Court recognises the dual effects of vertical restraints and the courts will consider competitive and anti-competitive influences of a vertical restraint when judging on its legality (Hainan Yutai Technology Feed)
Global Law Office (Beijing)
For a long time, Chinese Anti-Monopoly Law Enforcement Agencies (AMEA) and the judicial branch have been applying different standards when reviewing vertical agreements. Chinese AMEA persists that vertical agreements are per se illegal. Once such an agreement presents external elements (...)

The Czech Competition Authority imposes a fine of €322.000 on an undertaking for infringing national competition law by concluding illegal vertical agreements with accommodation establishments (Booking.com)
Bird & Bird (Prague)
On 18 December 2018, the Czech Office for the Protection of Competition ("Czech NCA") announced in a press release imposing a fine of in total CZK 8,336,000 (approx. EUR 322,000) on Booking.com for infringing the Act on the Protection of Competition by concluding illegal vertical agreements (...)

The EU Commission fines €40 million a clothing company for anticompetitive agreements to block cross-border sales (Guess)
Bird & Bird (Copenhagen)
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Bird & Bird (Copenhagen)
Google Adwords is a service that allows undertakings to bid on one or more keywords, to prompt an advertising link for the undertaking to appear on a search page, when Google users search on relevant keywords in the Google search engine. Which links are displayed after a Google search on the (...)

The Hellenic Competition Authority adresses a recommendation to a company in the electrical sector to remove anticompetitive clauses (SEHEA)
Kyriakides Georgopoulos (Athens)
HCC / ELECTRIC CONTRACTORS’ ASSOCIATION OF ATTICA (SEHEA) HCC (675/2018) I. In its Decision No 675/2018, the HCC resolved that the Electric Contractors’ Association of Attica (SEHEA) had adopted provisions in its Articles of Association that provided for the application of a fixed (...)

The EU Commission fines €40 million a clothing company for online advertising and sales restrictions imposed on authorized resellers (Guess)
Portolano Cavallo (Milan)
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Portolano Cavallo (Milan)
On December 17, 2018, the European Commission imposed a € 40 million fine on the US-based clothing company Guess for enacting contractual provisions and practices in its selective network of authorized wholesalers, monobrand and multi-brand retailers, contrary to Article 101(1) of the Treaty (...)

The EU Commission fines a clothing company close to €40 million for restricting cross-border trade (Guess)
Van Bael & Bellis (Brussels)
According to a press release issued on 17 December 2018, the European Commission (“Commission”) has fined the clothing company Guess € 39.8 million for infringing Article 101(1) Treaty on the Functioning of the European Union (“TFEU”) by imposing various types of resale restrictions on (...)

The EU Commission fines a clothing brand and retailer €40M for anticompetitive agreements to block cross-border sales (Guess)
European Commission - DG COMP (Brussels)
Antitrust: Commission fines Guess €40 million for anticompetitive agreements to block cross-border sales* The European Commission today fined the clothing company Guess €39 821 000 for restricting retailers from online advertising and selling cross-border to consumers in other Member States (...)

The EU Commission fines a clothing company for restricting retailers from online advertising and selling cross-border to consumers in other Member States (Guess)
McDermott Will & Emery (Paris)
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Norton Rose Fulbright (Brussels)
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McDermott Will & Emery (Brussels)
On 17 December 2018, the EC announced its decision to fine the clothing and accessories company Guess EUR 39.821 million for restricting retailers from online advertising and selling cross-border to consumers in other Member States. By doing so the company was able to maintain artificially (...)

The EU Commission fines an American fashion company €40M for restrictive distribution agreements (Guess)
Portolano Cavallo (Milan)
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Portolano Cavallo (Milan)
On December 17, 2018, the European Commission imposed a € 40 million fine on the US-based clothing company Guess for enacting contractual provisions and practices in its selective network of authorized wholesalers, monobrand and multi-brand retailers, contrary to Article 101(1) of the Treaty (...)

The EU Commission fines retail companies for resale price maintenance (Asus / Denon & Marantz / Philips / Pioneer) (Guess)
Bird & Bird (Prague)
A classic price-fixing arrangement typically takes the form of a cartel, i.e. a price fixing arrangement between competitors. Price fixing is also prohibited for companies in a vertical relationship (active at different levels of the supply chain such as a manufacturer and a retailer). In a (...)

The Hellenic Competition Authority investigates and sanctions a contractor industry for being involved in a regional cartel (Latomiki / Ilion / Elektromek / Orion / Teka)
Kyriakides Georgopoulos (Athens)
HCC/FIVE (5) CONTRACTOR UNDERTAKINGS HCC (674/18) I. The Greek contractor industry was again investigated and sanctioned by the HCC through its Decision No 674/2018 with a EUR 244,787.4 fine imposed on five (5) smaller contractors for their participation in a regional cartel consisting (...)

The UK Competition Authority provisionally finds that three drainage product manufacturers participated in a cartel (Stanton Bonna Concrete / CPM / FP McCann)
UK Competition & Markets Authority - CMA (London)
Two construction firms admit to illegal cartel* The CMA has provisionally found that 3 drainage product manufacturers broke competition law by co-ordinating prices for customers and sharing the market. Two of the businesses – Derbyshire-based Stanton Bonna Concrete Ltd and Somerset-based (...)

The EU General Court offers a mixed review of patent settlement agreements in the pharmaceutical sector (Servier)
Van Bael & Bellis (Brussels)
On 12 December 2018, the General Court (“GC”) once again passed judgment on a number of patent settlement agreements in the pharmaceutical sector. It had already reviewed such agreements in September 2016 when it upheld the decision of the European Commission (the “Commission”) in the Lundbeck (...)

The City Court of Odense acquits construction companies accused of exchanging prices and coordinating their bids (Jorton / H. Skjøde Knudsen)
Danish Competition and Consumer Authority (Copenhagen)
Denmark: City Court acquits construction companies in bid rigging case* The City Court of Odense acquitted the construction companies Jorton A/S and H. Skjøde Knudsen A/S as well as three members of the management in a bid rigging case. On 12 December 2018, the City Court of Odense (...)

The Paris Court of Appeal specifies that a manufacturer in the electronic product market has the right to deny access to its selective distribution network to an applicant distributor (Concurrence / Sony)
Freshfields Bruckhaus Deringer (Paris)
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Osborne Clarke (Paris)
This case concerned a consumer electronics manufacturer and a distributor between whom the relationship was particularly conflicting. A large number of commercial disputes were brought before the courts by the distributor to obtain the right to distribute the manufacturer’s products. Even (...)

The Italian Competition Authority provides useful guidance on under what circumstances an incumbent may associate with a competitor in a public tender for blood derivatives (Kedrion / Grifols)
Portolano Cavallo (Milan)
In January 2018 the AGCM launched an investigation for a possible breach of Article 101 TFEU against two international manufacturers of blood-based pharmaceuticals – Kedrion S.p.A (“Kedrion”) and Grifols Italia S.p.A (“Grifols”) – for participating as a joint venture to a public tender (issued (...)

The EU General Court rules that territorial exclusivity clauses in copyright licensing agreements raise competition concerns (Canal+)
Van Bael & Bellis (Brussels)
On 12 December 2018, the EU General Court (“GC” or “Court”) dismissed the application for annulment which Canal + SA (“Canal +”) had brought against a European Commission (“Commission”) decision that had made commitments offered by Paramount Pictures Ltd (“Paramount”) in the context of (...)

The EU General Court rules that pay-for-delay patent settlements can be illegal agreements but annuls abuse of dominance finding (Servier)
Freshfields Bruckhaus Deringer (London)
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UCL (London)
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Freshfields Bruckhaus Deringer (Rome)
The General Court has given eight judgments on a Commission fining decision concerning patent settlements entered into by Servier and five competitor producers of generic drugs, reducing the fines from a total of € 428 million to € 315 million. The Court broadly upheld the fines based on (...)

The EU General Court annuls a decision of the Commission for wrongly qualifying agreements as "pay for delay" and improperly qualifying an abuse of dominance, thus reducing the fine imposed on a pharmaceutical company (Servier)
Dechert (Paris)
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Dechert (Paris)
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Dechert (Paris)
The General Court annuls in part the European Commission’s decision finding the existence of restrictive agreements and an abuse of a dominant position on the market for perindopril, a medicine used to treat hypertension and heart failure* On 12 December 2018, the General Court (“Court”) (...)

The EU General Court holds that patent settlements may be deemed pay-for-delay agreements only if there are reverse payments, and the originator may not be held dominant if the market is not assessed rigorously (Servier)
Portolano Cavallo (Milan)
The Servier judgments: patent settlements may be deemed “pay-for-delay” agreements, and thus by-object infringements of Article 101 TFEU only if Commission substantiates strong indication of “reverse payment” or “abnormal inducement” from the originator to the generic; further, the originator (...)

The German Federal Court of Justice decides that in a quota-fixing and customer-assigning cartel, the prerequisites for prima facie evidence to establish whether the cartel has inflicted damage and whether it has affected individual orders are not fulfilled (Rail cartel)
Noerr (Berlin)
German Federal Court of Justice: no double prima facie evidence in cartel damages litigation* In a landmark ruling dated 11 December 2018 (KZR 26/17 – “rail cartel”), the German Federal Court of Justice decided that, in a quota-fixing and customer-assigning cartel, the prerequisites for (...)

The German Federal Court of Justice rejects the argument that a customer of a cartel member may have been contributorily negligent if one of their employees was aware of the anticompetitive agreements (Rail Cartel)
Hogan Lovells (Munich)
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Hogan Lovells (Munich)
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Hogan Lovells (Munich)
Brief summary of facts A regional railroad operator brought an action for damages against the defendant, a producer of railway track materials, on the basis of its participation in the rail cartel (Schienenfreunde-Kartell -"Friends of railroads"-cartel), which was established by the Germany (...)

The Hellenic Competition Authority decides to settle a case against two press distribution agencies for participating in horizontal agreements and concerted practices (Argos / Europi)
Hellenic Competition Commission (Athens)
Settlement case in the market of distribution of Greek press* By its unanimous Decision No. 669/2018, the Grand Chamber of the Hellenic Competition Commission (“HCC”) decided to settle a case against two press distribution agencies in Greece, ARGOS SA Press Distribution Agency (“ARGOS”) and (...)

The German Competition Authority imposes a fine of €1.4 million on asphalt producers for cartel agreements (Gaul / Südhessische Asphalt-Mischwerke / Mitteldeutsche Hartstein-Industrie)
German Competition Authority (Bonn)
Bundeskartellamt imposes fine of approx. 1.4 million euros on asphalt producers and reviews association guidelines for setting up supplier consortia* The Bundeskartellamt has imposed a fine amounting to 1.43 million euros on Gaul GmbH, a manufacturer of asphalt mixes, for participating in a (...)

The Shanghai Intellectual Property Court determines whether there are protectable interests and concludes that the degree of damage suffered by the plaintiff is not enough to meet the need for relief through the anti-unfair competition law (Beijing iQIYI Technology / Beijing Sogou Information)
Beijing Foreign Studies University
The Anti-Unfair Competition Law of the People’s Republic of China stipulates seven types of unfair competition, namely, label confusion (Article 6), commercial bribery (Article 7), misleading statements (Article 8), infringement on trade secrets (Article 9), improper prize-winning sales (...)

The Egyptian Competition Authority decides to invalidate clauses between a Big Tech company and its distributors for exclusive agreements considered as restrictive (Apple)
Egyptian Competition Authority (Cairo)
Unofficial convenience translation: In case of any discrepancy in this translation the Arabic wording only would prevail.* The Board of Directors of the Egyptian Competition Authority (“ECA”) has decided that Apple and its distributors have infringed the Egyptian Competition Law (“ECL”). The (...)

The Latvian Competition Authority detects illegal coordination between providers of office equipment maintenance and delivery services (TOMEGA / BTK.LV)
Latvian Competition Council (Riga)
The CC detects forbidden coordination of activities by providers of office equipment maintenance and delivery services* On 7 December, the Competition Council of Latvia (the CC) adopted a decision, according to which it detected unlawful and repeated coordination of activities between (...)

The US District Court for the Southern District of Florida receives an antitrust claim against Bitcoin companies concerning alleged coordination to restrain trade (United American Corp / Bitmain)
Constantine Cannon (New York)
The First Blockchain Antitrust Case. Or Is It?* Legal professionals paying close attention to the still nascent world of blockchains and cyptocurrencies are following what is considered to be the first antitrust case involving cryptocurrencies. For enthusiasts, United American Corp. v. (...)

The COMESA Competition Commission’s second investigation into restrictive vertical distribution ends with a beverage company avoiding a fine after agreeing to eliminate price maintenance clauses (Coca-Cola)
Primerio (Washington)
COMESA’S SECOND RESTRICTIVE TRADE PRACTICES INVESTIGATION ENDS INCONCLUSIVELY* Having now concluded two non-merger cases (the first was an exclusivity issue in football broadcasting and sponsorship agreements, see here), the COMESA Competition Commission’s (“CCC”) second investigation into (...)

The French Competition Authority fines household appliance manufacturers for price-fixing (BSH / Candy Hoover / Eberhardt Frères / Electrolux / Indesit / Whirlpool)
Van Bael & Bellis (Brussels)
On 6 December 2018, the French Competition Authority (“FCA”) imposed a total fine of € 189 million on six household appliance manufacturers (BSH, Candy Hoover, Eberhardt Frères, Electrolux, Indesit and Whirlpool) for participating in two distinct cartels. In the first cartel, which lasted (...)

The EU Commission invites interested parties to comment on the commitments offered by two credit card companies to address competition concerns relating to inter-regional interchange fees for card payment transactions (Mastercard II / Visa)
European Commission - DG COMP (Brussels)
Antitrust: Commission seeks feedback on commitments offered by Visa and Mastercard on inter-regional interchange fees* The European Commission is inviting comments from interested parties on commitments offered separately by Visa and Mastercard to address competition concerns relating to (...)

The French Competition Authority fines six household appliance manufacturers for agreeing on price increases (BSH / Candy Hoover / Eberhart Frères / Electrolux / Indesit / Whirlpool)
Autorité de la concurrence (Paris)
The Autorité de la concurrence hands down fines worth a total of €189 million to six household appliance manufacturers, among the largest in the sector, notably for having agreed on price increases * Background Following evidence provided by the Directorate General for Competition Policy, (...)

Unilateral Practices

The Russian Presidium of the Supreme Court considers a competition case for the first time, granting the appeal of Europe’s largest port operator concerning sanctions for abuse of dominance (Novorossiysk Commercial Sea Port)
ALRUD (Moscow)
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ALRUD (Moscow)
THE FIRST COMPETITION CASE IN THE PRESIDIUM OF THE SUPREME COURT OF THE RUSSIAN FEDERATION – RESOLUTION OF THE DISPUTE BETWEEN THE FAS AND THE LARGEST STEVEDORE* Background and main problems Novorossiysk Commercial Sea Port PJSC (“NCSP”) is one of the Europe’s largest port operator in (...)

The Italian Competition Authority fines a multinational energy company over €93 million for abusing its dominant position on certain local markets for the retail supply of electricity (Enel)
Cleary Gottlieb Steen & Hamilton (Milan)
On December 20, 2018, the Italian Competition Authority (“ICA”) fined Enel, a multinational energy company active, among other things, in the distribution and sale of electricity in Italy, over €93 million for abusing its dominant position on certain local markets for the retail supply of (...)

The Italian Competition Authority fines a company for abusing its dominant position on certain local markets for the retail supply of electricity (Enel)
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Cleary Gottlieb Steen & Hamilton (Milan)
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Gianni Origoni Grippo & Partners (Rome)
On December 20, 2018, the Italian Competition Authority (“ICA”) fined Enel, a multinational energy company active, among other things, in the distribution and sale of electricity in Italy, over €93 million for abusing its dominant position on certain local markets for the retail supply of (...)

The Polish Competition Authority imposes commitments to restore competition on the railway infrastructure management market (PKP Cargo)
WKB Wierciński Kwieciński Baehr (Warsaw)
On 20 December 2018 the Polish Competition Authority ((Prezes Urzedu Ochrony Konkurencji i Konsumentów (“PCA” or the “Authority”) issued a decision in which it found that PKP Polskie Linie Kolejowe S.A. (“PKP” or the “Company”) could have abused its market position in relations with the (...)

The Ontario Superior Court holds that misleading information can trigger class actions as a breach of the Competition Act (Rebuck / Ford Motor)
Steve Szentesi Law Corporation (Vancouver)
Key Requirements For Misleading Advertising Civil Actions Confirmed By Ontario Superior Court* In a recent case handed down by the Ontario Superior Court of Justice, in Rebuck v. Ford Motor Company, the Court confirmed key requirements for commencing Competition Act misleading advertising (...)

The US District Court for the Northern District of California denies a motion for a summary judgment that a company’s standard essential patent licensing practices breached its FRAND obligations (ASUS / InterDigital)
Hogan Lovells (Washington)
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Hogan Lovells (Washington)
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Baker McKenzie (Washington)
This article has been nominated for the 2020 Antitrust Writing Awards. Click here to learn more about the Antitrust Writing Awards. In a decision published in redacted form, Judge Beth Labson Freeman of the Northern District of California denied ASUSTek Computer Inc.’s and ASUS Computer (...)

The Italian Competition Authority fines a multinational energy company €93M for discriminatory practices and leveraging its dominant position (Enel)
Cleary Gottlieb Steen & Hamilton (Milan)
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Cleary Gottlieb Steen & Hamilton (Milan)
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Gianni Origoni Grippo & Partners (Rome)
On December 20, 2018, the Italian Competition Authority (“ICA”) fined Enel, a multinational energy company active, among other things, in the distribution and sale of electricity in Italy, over €93 million for abusing its dominant position on certain local markets for the retail supply of (...)

The EU Commission imposes a fine totalling €77M on an energy company for abuse of dominance on Bulgarian gas markets (BEH)
Van Bael & Bellis (Brussels)
On 17 December 2018, the European Commission (the “Commission”) adopted a decision imposing a fine of € 77,068,000 on Bulgarian Energy Holding (“BEH”), its gas supply subsidiary Bulgargaz, and its gas infrastructure subsidiary Bulgartransgaz (together, the “BEH Group”) for infringing Article (...)

The EU Commission imposes a fine totalling €77M on a gas supply company and its subsidiaries for blocking access to key natural gas infrastructure in Bulgaria (BEH)
European Commission - DG COMP (Brussels)
Antitrust: Commission fines BEH Group € 77 million for blocking access to key natural gas infrastructure in Bulgaria* The European Commission has fined Bulgarian Energy Holding (BEH), its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz (the BEH group) €77 (...)

The South Korean FTC fines a company and imposes remedies for blocking potential rivals from entering the aviation reinsurance market (Korean Re)
Korea Fair Trade Commission (Seoul)
The Korea Fair Trade Commission (headed by Chairperson Kim Sang- Jo, hereinafter referred to as the ‘KFTC’) decided to impose remedies and approximately 7.6 billion won penalty surcharges* against Korean Reinsurance Co., (hereinafter referred to as ‘Korean Re’) for blocking potential rivals (...)

The EU General Court slightly reduces the fine in a case of abuse of dominance in the telecom sector to account for the Commission’s failure to establish exclusionary effects over a limited period (Slovak Telekom)
Van Bael & Bellis (Brussels)
On 13 December 2018, the General Court (the “GC”) issued a judgment upholding in large part an October 2014 decision of the European Commission (the “Commission”) against Slovak Telekom, in which it found that Slovak Telekom had abused its dominant position by engaging in a constructive (...)

The EU Commission imposes binding remedies on a German grid operator to increase electricity trading (TenneT)
European Commission - DG COMP (Brussels)
Antitrust: Commission imposes binding obligations on TenneT to increase electricity trading capacity between Denmark and Germany* The European Commission has adopted a decision rendering legally binding commitments offered by German grid operator TenneT to significantly increase cross-border (...)

The EU Commission accepts commitments from a company to settle an investigation into conduct affecting the German and Danish electricity markets (TenneT)
Van Bael & Bellis (Brussels)
On 7 December 2018, the European Commission (“Commission”) adopted a decision accepting a number of commitments from TenneT to address the Commission’s competition concerns regarding TenneT’s conduct that allegedly limited southward capacity at the electricity interconnector between Western (...)

Mergers

The French Competition Authority clears the creation of a joint undertaking subject to remedies in VAT refund services markets (Global Blue / Planet Payment)
Autorité de la concurrence (Paris)
The Autorité de la concurrence clears, subject to conditions, the creation of the Cash Paris Tax Refund company by Global Blue and Planet Payment* A transaction referred by the European Commission On 21 August 2018, the European Commission referred to the Autorité de la concurrence the (...)

The Dutch Competition Authority clears a merger subject to remedies in the pharmaceutical sector (Apotex / Aurobindo)
Netherlands Authority for Consumers & Markets- ACM (The Hague)
ACM clears merger between pharmaceutical companies Aurobindo and Apotex* The Netherlands Authority for Consumers and Markets (ACM) has cleared the acquisition of pharmaceutical company Apotex by rival company Aurobindo. The clearance was granted after the companies had proposed to sell (...)

The UK Competition Authority clears a wet-lease agreement between two airlines for the operation of flights between London City airport and Dublin (Aer Lingus / CityJet)
UK Competition & Markets Authority - CMA (London)
Aer Lingus / CityJet deal cleared for take-off* Aer Lingus’ deal with CityJet for the London City airport to Dublin route has been cleared after a CMA probe. The Competition and Markets Authority (CMA) has today cleared an agreement under which Aer Lingus has taken over scheduled passenger (...)

The UK competition authority concludes that an aircraft wet lease, together with the transfer of slots and customer relationships, should be treated as a merger under UK merger rules (Aer Lingus / CityJet)
Bird & Bird (London)
A decision of the UK Competition and Markets Authority (CMA), made in December but published on 22 January, concluded that an aircraft wet lease, together with the transfer of slots and customer relationships, should be treated as a merger under UK merger rules. This is the first such (...)

The Irish Competition Authority requires structural remedies to clear a merger in the waste management markets (Enva / Rilta)
Irish Competition Authority (Dublin)
CCPC requires sale of facility to secure approval for Enva/Rilta merger* Enva also subject to behavioural remedy in relation to the supply of services The Competition and Consumer Protection Commission (CCPC) has cleared, subject to binding commitments, the proposed acquisition by Enva (...)

The Indian Competition Authority approves purchase of 40% equity share in non-life insurer by international insurer with only life insurance business in the country (Ageas / RSGI Royal Sundaram General Insurance)
Vaish Associates Advocates (New Delhi)
CCI approves acquisition of 40% equity share capital of Royal Sundaram General Insurance Company Limited by Ageas* By way of order dated 19.12.2018, the Commission has approved the acquisition of 40% equity share capital of Royal Sundaram General Insurance Company Limited (“RSGI/ Target”) by (...)

The Indian Competition Authority clears an investment company’s acquisition of optionally convertible preferential stock in an engineering company (Integral / Toyo Engineering)
Vaish Associates Advocates (New Delhi)
Integral Corporation acquires optionally convertible preferential stock in Toyo engineering Corporation* The Commission, by way of order dated 19.12.2018, has approved the acquisition of optionally convertible preferential stock (without voting rights) of Toyo Engineering Corporation (...)

The Hungarian Competition Authority fines a company for gun-jumping in the market of technical building services (ETS / TGS Engineering)
Hungarian Competition Authority (Budapest)
GVH once again imposes a fine for the implementation of a concentration prior to authorisation* The Hungarian Competition Authority (Gazdasági Versenyhivatal, hereinafter GVH) imposed a fine for the seventh time for the implementation of a concentration prior to authorisation by the GVH. (...)

The US FTC Chief Administrative Law Judge halts the acquisition of a titanium dioxide producer by a chemical company on the grounds that it would substantially lessen competition (Tronox / Cristal)
Jones Day (Washington)
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Jones Day (Washington)
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Jones Day (Washington)
In Short The Development: A Federal Trade Commission ("FTC") administrative judge ("ALJ") has blocked Tronox Corporation’s proposed acquisition of the titanium dioxide ("TiO2") business of The National Titanium Dioxide Company Limited ("Cristal"), concluding that the transaction may (...)

The UK Competition Authority issues its Merger remedies guidance
UK Competition & Markets Authority - CMA (London)
Guidance on merger remedies in Phase 1 and Phase 2 investigations.* This guidance is intended for merger parties and their advisers. It seeks to provide a single source of guidance on remedies for Phase 1 and Phase 2 merger investigations. This guidance applies to any Phase 1 merger (...)

The Hungarian Competition Authority imposes a fine for gun jumping in the market of technical building services (ETS / TGS)
Bird & Bird (Budapest)
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Bird & Bird (Budapest)
The Hungarian Competition Authority (the “GVH”) further crystallized its assessment of gun jumping offenses in its decision imposing a fine on ETS Efficient Technical Solutions GmbH (“ETS”) for its failure to notify the acquisition of TGS Engineering Kft. (“TGS”) prior to its implementation (...)

The Italian Competition Authority unconditionally clears a merger in the motor vehicles distribution market (Eurocar / Dorigoni)
Municipality of Cagliari
By a First Phase decision rendered in Eurocar/Dorigoni, the Italian Competition Authority (ICA) gave an unconditional go-ahead to a merger between two dealers admitted to the Italian distribution network for motor vehicles manufactured by the Volkswagen Group (VW). The ICA considered the (...)

The EU Commission clears a merger subject to remedies in the market of batteries (Spectrum Brand / Energizer)
European Commission - DG COMP (Brussels)
Mergers: Commission approves acquisition of Spectrum Brands’ batteries and portable lighting business by Energizer, subject to conditions* The European Commission has approved under the EU Merger Regulation the acquisition of Spectrum Brands’ batteries and portable lighting business by (...)

The EU Commission clears a merger subject to remedies in the market of industrial lubricants (Quaker / Houghton)
European Commission - DG COMP (Brussels)
Mergers: Commission approves acquisition of Houghton by Quaker, subject to conditions* The European Commission has approved, under the EU Merger Regulation, the acquisition of Houghton by Quaker, both producers of industrial lubricants. The decision is conditional on the divestment of (...)

The EU Commission clears a merger subject to remedies in the data security solutions market (Gemalto / Thales)
European Commission - DG COMP (Brussels)
Mergers: Commission approves acquisition of Gemalto by Thales, subject to conditions* The European Commission has approved under the EU Merger Regulation the proposed acquisition of Gemalto by Thales. The approval is conditional on the divestment of Thales’ general purpose hardware security (...)

The EU Commission opens an in-depth investigation to assess a merger in the telecoms and TV services market (Liberty Global / Vodafone)
European Commission - DG COMP (Brussels)
Mergers: Commission opens in-depth investigation into proposed acquisition by Vodafone of Liberty Global’s business in Czechia, Germany, Hungary and Romania* The European Commission has opened an in-depth investigation to assess Vodafone’s proposed acquisition of Liberty Global’s business in (...)

The EU Commission clears a merger subject to remedies in the ceilings manufacturing market (Armstrong / Knauf)
European Commission - DG COMP (Brussels)
Mergers: Commission approves acquisition of Armstrong’s ceilings business outside the Americas by Knauf, subject to conditions* The European Commission has conditionally approved under the EU Merger Regulation the acquisition of Armstrong World Industries’ ceilings business outside the (...)

The Indian Competition Authority clears acquisition of 100% stake in foreign company’s subsidiary’s 4 target businesses by 2 domestic companies in the same trust group in the food sector (Heinz India / Cadila / Zydus)
Vaish Associates Advocates (New Delhi)
Zydus/Cadila acquire 100 percent shareholding of Heinz India* CCI, by way of order dated 06.12.2018, approved the acquisition of Heinz India from Heinz Italia and Heinz Europe by Zydus/Cadila. By way of the acquisition, Zydus/Cadila (“acquirers”) acquired businesses relating to four brands (...)

The Indian Competition Authority approves international gas company’s acquisition of 100% stake in 2 local liquified natural gas joint ventures (Shell Gas / HLPL Hazira LNG / HPPL Hazira Port)
Vaish Associates Advocates (New Delhi)
Shell Gas B.V acquire 100% shares and sole control of HPPL and HLPL* CCI, by way of order dated 06.12.2018, approved the acquisition of (i)26% shares in Hazira LNG Private Limited (“HLPL”) and (ii) 26% shares in Hazira Port Private Limited (“HPPL”), by Shell Gas B.V (“Shell”) from Total Gas (...)

State Aid

The EU Commission finds that Gibraltar’s tax rulings favoring multinational companies are illegal under EU State aid rules
European Commission - DG COMP (Brussels)
State aid: Commission concludes Gibraltar gave around €100 million of illegal tax advantages to multinational companies* The European Commission has found that Gibraltar’s corporate tax exemption regime for interest and royalties, as well as five tax rulings, are illegal under EU State aid (...)

The EU Court of Justice holds that a tax exemption may not constitute State aid if it is justified by reasons linked to the nature or general scheme of the tax system (Finanzamt / A-Brauerei)
Maastricht University
Justification of a Tax Exemption* Prevention of excessive taxation may justify tax exemption. Prevention of abuse may justify limits to the tax exemption. Introduction A tax exemption may not constitute state aid if it is justified by reasons which are linked to the nature or general (...)

The EU Commission approves plan by France, Germany, Italy and the UK to give public support to joint research and innovation project in microelectronics
European Commission - DG COMP (Brussels)
State aid: Commission approves plan by France, Germany, Italy and the UK to give €1.75 billion public support to joint research and innovation project in microelectronics* The European Commission has found that an integrated project jointly notified by France, Germany, Italy and the UK for (...)

The EU Commission approves under EU State aid rules reductions in renewable electricity and cogeneration surcharges for energy-intensive companies in Greece
European Commission - DG COMP (Brussels)
State aid: Commission approves reductions in renewable electricity and cogeneration surcharges for energy-intensive companies in Greece* The European Commission has approved, under EU State aid rules, reductions granted to energy-intensive companies on a surcharge to finance support for (...)

The EU Commission approves under EU State aid rules a Bavarian project to deploy very high capacity networks in six municipalities (Bavarian)
European Commission - DG COMP (Brussels)
State aid: Commission approves Bavarian project for Gigabit broadband networks* The European Commission has approved under EU State aid rules a Bavarian project to deploy very high capacity networks in six municipalities. The aid will bring very fast broadband to customers in areas where the (...)

The EU Commission finds that a Romanian petrochemical company received around €335 million of incompatible aid (Oltchim)
European Commission - DG COMP (Brussels)
State aid: Romania needs to recover incompatible aid from petrochemical company Oltchim* The European Commission has found that Romanian petrochemical company Oltchim received around €335 million of incompatible aid from Romania, since the company’s failed privatisation in September 2012. (...)

The EU General Court annuls a Commission decision holding that public funding to an operator in a closed sector does not affect trade and therefore does not constitute State aid (Scandlines Danmark) (Stena Line)
Maastricht University
Infrastructure Projects, State Guarantees and Distortion of Competition* State guarantees must be limited in duration and amount and the conditions for their mobilization must be defined in advance. Public funding to an operator in a closed sector does not affect trade and, therefore, does (...)

The EU General Court holds that public funds managed by private airports operators can be classified as state resources (Ryanair)
Maastricht University
The Private Investor Principle in Air Transport - Part I* The Private Investor Principle in Air Transport - Part II* Public funds managed by private airport operators can be classified as state resources. Prices charged by airport operators can be used as a benchmark for market prices only (...)

The EU General Court annuls a Commission decision which found that Slovakia did not grant incompatible state aid to a chemical company (AlzChem)
Maastricht University
Pari Passu Is not Static* When comparing the behaviour of public and private creditors, it is necessary to ensure that their situations and interests do not diverge over time. Introduction When an undertaking owes money to a public authority the latter must use all available legal means (...)

The EU Commission authorizes Greece under State aid rules to extend by 20 years concession for the operation of a national airport (Athens International Airport)
European Commission - DG COMP (Brussels)
State aid: Commission finds no aid in €1.1 billion extension of Athens International Airport concession* The European Commission has authorised Greece, under EU State aid rules, to extend by 20 years the concession granted to AIA to operate Athens International Airport. The fee AIA will pay (...)

The EU Commission approves under EU State aid rules a measure to promote the shift of freight transport from road to rail in Germany (BEH)
European Commission - DG COMP (Brussels)
State aid: Commission approves €350 million per year in public funding to promote shift of freight transport from road to rail in Germany* The European Commission has approved under EU State aid rules a German aid scheme to promote the shift of freight traffic from road to rail. The scheme (...)

The EU Commission decides to refer Romania to the EU Court of Justice for failing to fully recover illegal State aid (Viorel / Ioan Micula)
European Commission - DG COMP (Brussels)
State aid: Commission refers Romania to Court for failure to recover illegal aid worth up to €92 million* The European Commission has decided to refer Romania to the European Court of Justice for failing to fully recover illegal State aid worth up to €92 million from Viorel and Ioan Micula (...)

The EU Commission finds a Cypriot State aid scheme for vulnerable households borrowers to be compatible with the internal market
Maastricht University
* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no (...)

Procedures

The Dutch Competition Authority publishes guidelines to clarify its simplified settlement procedure
Netherlands Authority for Consumers & Markets- ACM (The Hague)
Dutch Authority for Consumers and Markets (ACM) publishes guidelines to clarify simplified settlement procedure* On 21 December 2018, the Dutch Authority for Consumers & Markets (“ACM”) published (“Settlement Guidelines”) Such a procedure can be followed if the ACM intends to impose a (...)

The French Competition Authority publishes a notice clarifying the settlement procedure in competition cases
Jones Day (Paris)
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Jones Day (Paris)
In December 2018, the French Competition Authority ("FCA") published a notice clarifying the FCA’s settlement procedure in competition cases ("Notice"). The FCA’s General Rapporteur may offer settlement to companies that agree not to challenge the allegations made against them in the statement (...)

The Dutch Competition Authority publishes guidelines on its simplified settlement procedure
Bird & Bird (The Hague)
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KPN (Amsterdam)
On 21 December 2018, the Dutch Authority for Consumers & Markets (“ACM”) published guidelines on its simplified settlement procedure (“Settlement Guidelines”). This procedure may be followed if the ACM intends to impose a fine and the undertaking or person involved is prepared to admit to (...)

The Dutch Competition Authority publishes settlement guidelines designed to shorten the timeline and reduce the cost of settling competition cases
Jones Day (Amsterdam)
In December 2018, the Netherlands Authority for Consumers and Markets ("ACM") published guidelines designed to shorten the timeline and reduce the cost of settling cases. The Guidelines clarify ACM’s simplified settlement procedure that applies to competition cases in which ACM has power to (...)

The EU Court of Justice sets aside General Court judgments granting damages for excessively long judicial proceedings (Gascogne / Kendrion / Plasticos Españoles)
Court of First Instance of Namur (Namur)
On 13 December 2018, the Court of Justice of the European Union (“ECJ”) delivered three judgments on separate appeals brought against judgments of the General Court (“GC”) by Gascogne Sack Deutschland (“Gascogne”), Kendrion and Plasticos Españoles (together with its parent company Armando (...)

The EU Commission publishes guidelines to facilitate access to antitrust files
Court of First Instance of Namur (Namur)
On 12 December 2018, the European Commission (“Commission”) published two new guidance documents facilitating access to the Commission’s files by undertakings subject to antitrust proceedings. These documents are part of the Commission’s efforts to increase the transparency of competition (...)

The US Court of Appeals for the Seventh Circuit upholds dismissal of a class action against containerboard manufacturers for conspiring to increase prices and reduce output (Kleen Products / Georgia‐Pacific / West Rock CP)
Wolters Kluwer (Riverwoods)
Seventh Circuit Identifies Difficulties in Challenging* In a decision pondering the adequacy of the Sherman Act to protect consumers from consciously parallel conduct among oligopolists, the U.S. Court of Appeals in Chicago upheld dismissal of a class action against containerboard (...)

The EU General Court confirms that competition liability may only exceptionally be attributed by the criterion of economic continuity (Coveris Rigid France)
Municipality of Cagliari
Adjudicating an appeal lodged by a cartelist that then divested its business in the Coveris case, the General Court of the EU (GC) held that the European Commission correctly grounded the competition liability of the appellant on the general principle of personal liability instead of the (...)

The EU General Court confirms that successor liability for EU competition law infringements may only exceptionally be based on economic continuity (Coveris Rigid France)
Baker Botts (Brussels)
In December 2018, the EU General Court (the “General Court”) dismissed the action for annulment lodged by Coveris Rigid France (“Coveris”) against a decision of the European Commission (the “Commission”) that held Coveris liable for its participation in the retail food packaging cartel. The (...)

The Indian Supreme Court upholds Bombay High Court decision and clarifies jurisdiction between sectoral and competition regulator in telecommunications markets (Reliance Jio / Bharti Airtel / Idea Cellular / Vodafone India)
Vaish Associates Advocates (New Delhi)
Supreme Court clears the jurisdictional conflict between CCI & TRAI- dismisses CCI and Jio appeals* The Hon’ble Supreme Court by way of its judgement dated 05.12.2018 has finally cleared the uncertainty surrounding the jurisdiction of CCI and TRAI (Telecom Regulatory Authority of India). (...)

The EU Data Protection Supervisor, Commission and Parliament clarify how data protection laws apply to competition investigations
McDermott Will & Emery (Paris)
,
Norton Rose Fulbright (Brussels)
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McDermott Will & Emery (Brussels)
The application of the GDPR from 5 May 2018 has had a significant impact on the way companies manage their data in various areas. In the field of competition, the GDPR might well cause companies that face competition investigations to wonder whether they should provide personal data in (...)

Regulatory

The Portuguese Competition Authority presents three recommendations to the Government and administrations to improve competition in the maritime ports sector
Portuguese Competition Authority (Lisbon)
Ports: AdC presents three recommendations to the Government and administrations to improve competition in the sector * The Portuguese Competition Authority (Autoridade da Concorrência, AdC) recommends to the Government and port authorities the adoption of measures to promote competition in (...)

The Australian Competition Authority publishes guidelines on collective bargaining for small businesses
Bird & Bird (Sydney)
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Bird & Bird (Sydney)
On 20 December 2018, the Australian Competition & Consumer Commission ("ACCC") published guidelines on collective bargaining for small businesses, including agribusinesses ("Guidelines"). Whilst collective bargaining can generally lead to more efficient negotiations, better access to (...)

The German Government tightens further its rules on foreign investments in national business by non-EU and non-EFTA investors
Freshfields Bruckhaus Deringer (Dusseldorf)
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Freshfields Bruckhaus Deringer (Berlin)
On 19 December, the German Government tightened further its rules on foreign investments in German businesses by non-EU/non-EFTA investors. No parliamentary approval was needed and the reforms entered into force on 29 December 2018. The reform lowers significantly the threshold at which the (...)

The UK Competition Authority releases a market study in which it proposes reforms to improve competition in the audit sector
UK Competition & Markets Authority - CMA (London)
CMA proposes reforms to improve competition in audit sector* Improvements to the independence and the quality of audits are the focus of the CMA’s market study update. The Competition and Markets Authority (CMA) has published an update paper outlining serious competition concerns and (...)

The EU Commission publishes a code to regulate communications in Europe
Jones Day (Brussels)
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Jones Day (Brussels)
,
Jones Day (Amsterdam)
In Short The Situation: On December 18, 2018, the European Union published its European Electronic Communication Code ("Code"). The Result: The Code overhauls the current legislative framework for telecommunications with the aim of consolidating existing legislations into a single Act. (...)

The EU Parliament and Council adopt a directive to empower the Member states’ Competition Authorities to be more effective enforcers and to ensure the proper functioning of the internal market (ECN +)
McDermott Will & Emery (Paris)
,
McDermott Will & Emery (Brussels)
,
Norton Rose Fulbright (Brussels)
On 4 December 2018, the Council adopted the Directive 2019/1 to enable Member State competition authorities to be more effective enforcers (ECN+). This adoption followed an agreement reached with the European Parliament at first reading. In March 2017, the EC published a proposal for a new (...)

The Spanish Government adopts legislation to comply with the EU Court of Justice judgement on sales at a loss (Europamur)
CMS Albiñana y Suárez de Lezo (Madrid)
The Spanish Government has amended the Spanish Retail Commerce Act (“SRCA”) in order to comply with the European Court of Justice’s (“ECJ”) Europamur judgement on sales at a loss, by issuing Royal Decree-Act 20/2018, of 7 December (the “Royal Decree”) . According to the ECJ, the illegality of (...)

International

Spain: The Spanish Supreme Court confirms the right to be heard when there is a change in the legal qualification of the facts at the end of the infringement procedure, but only in case the change can result in the companies being otherwise defenseless (Maderas José Sainz)
Baker McKenzie (Madrid)
In five judgments issued in December 2018 and published in the first quarter of 2019, the Spanish Supreme Court confirmed the judgments of the Audiencia Nacional quashing the CNMC Wooden Pallets cartel decision. In September 2014 the Spanish Competition Authority (the “CNMC”) had fined 24 (...)