On May 3, 2024, the French Directorate General for Competition Policy, Consumer Affairs and Fraud Control[1] (“DGCCRF”) published its 2023 annual report (the “Report”).[2] The Report highlights the DGCCRF’s importance in cartel and other anti-competitive behavior detection in France, as well as its new roles, including taking part in the enforcement of the Digital Markets Act (“DMA”).[3]
The DGCCRF is a department of the French Ministry of Economy and Finances with responsibilities in a broad range of economic matters, including consumer protection and competition law enforcement. Its Report showcases the important role of DGCCRF’s local services[4] in detecting anti-competitive practices that can then be referred to the French Competition Authority (“FCA”) when they are material enough. In 2023, the DGCCRF referred 41 cases to the FCA (twice as many as in 2022 and similar to 2021) and such referrals led to seven FCA decisions[5]. More recently, the DGCCRF played an important role in the detection of cartels in the pre-cast concrete sector which resulted in a total fine of approx. €76.6 million.[6] The DGCCRF also has enforcement and sanctioning powers in low-ticket cases.[7] The largest fine it imposed in 2023 relates to bid-rigging conduct in the electrical grid construction market and amounted to €237,600.[8]
The Report also showcases the DGCCRF’s role, jointly with the FCA, in helping the European Commission’s enforcement of the DMA:[9] “The DGCCRF, together with the French Competition Authority, will be able to carry out investigations to control compliance with the DMA by the concerned operators, although only the European Commission will be able to take decisions. We will nevertheless have to keep the European Commission informed of any new investigation targeting these companies to ensure harmonized implementation across Europe.”[10]
[1] Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes.
[2] See DGCCRF press release, Présentation du bilan 2023 de la DGCCRF, May 3, 2024, available here. The complete version of the Report is available here.
[3] Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act).
[4] The DGCCRF has eight Interregional Competition Investigation Brigades (Brigades interregionales d’enquête concurrence) present throughout the country.
[5] The FCA adopted seven decisions on the basis of information provided by the DGCCRF. Most notably, a DGCCRF report led to a €4 million fine against a premium tea supplier for prohibiting the online resale of distributors[5] while another led to a €2.95 million fine against bakery equipment manufacturers for price fixing practices
[6] FCA Decision No. 24-D-06 of May 21, 2024 regarding practices implemented in the pre-cast concrete products sector, as reported in our June 2024 Cleary Antitrust Watch blog post, available here.
[7] Specifically, where the practices concern a local market and the undertakings involved generate below €200 million in aggregate turnover and below €50 million in individual turnover (Article L.464-9 of the French Commercial Code).
[8] See DGCCRF press release : Entente dans le secteur des marchés de travaux de réseaux électriques : la DGCCRF inflige 237 600 euros d’amende, June 16, 2023, available here.
[9] While the Commission is recognized as the sole enforcer of the DMA, the Regulation expressly recognises the supporting role of national competition authorities. See art. 21(5), art. 37 and 38(7) of the DMA.