On January 9, 2020, the French Competition Authority (“FCA”) announced its main priorities for 2020.1[1] The regulator stressed that the digital and retail sectors would remain at the top of its agenda given the recent developments in these fields and the challenging competition issues they raise. Trade associations and unions may also face more significant fines while climate concerns may raise discussions between regulators to enhance environmental protection. On the legislative front, the FCA will follow the implementation of the ECN+ Directive in France and the upcoming revision of French merger control guidelines.
The Commission Reviews a Decision To Cut Jobs in a Divested Compressor Plant Following the Nidec/ Embraco Phase II Merger Approval
On January 6, 2020, the Commission announced that it would investigate job losses in a plant in Fürstenfeld, Austria, following the acquisition of Whirlpool’s refrigeration compressor business, Embraco, by Nidec, a Japanese manufacturer of electric motors, powertrains, and other related industrial components. The Commission had conditionally approved the transaction following an in-depth merger control investigation, allowing the creation of a leading player in the refrigeration sector.[1]
2019 Reveiw
CMA Activity
In 2019, the CMA devoted considerable resources to preparing for the UK’s exit from the EU. It carried out a consultation and published guidance on the functions of the CMA after a ‘no deal’ exit from the EU. In anticipation of its increased workload, it recruited additional staff at all seniority levels and completed its move to new premises in Canary Wharf. It also increased its focus on digital markets and took a less permissive approach to gun-jumping and failures to provide full responses to formal requests for information.
The FCO’s Activities in 2019
On December 27, 2019, the FCO published a summary of its activities in 2019.[1] In 2019, the FCO imposed fines in cartel proceedings totaling approximately €848 million in five cartel proceedings, examined around 1,400 notified mergers, conducted numerous abuse of dominance proceedings (including against Facebook and Amazon), and received 104 applications for review in public procurement cases.
The European Commission Receives Feedback From National Competition Authorities on Its Review of the VBER
On December 13, 2019 the Commission published an anonymized summary of the contributions submitted by NCAs during the Commission’s ongoing evaluation of the Vertical Block Exemption Regulation (“VBER”) and the accompanying Guidelines on Vertical Restraints (“Guidelines”), which will lapse in 2022.[1] The Commission received 20 contributions from NCAs across the EEA.[2]
The Paris Court of Appeals Orders Renault Trucks To Disclose the Commission’s Statement of Objections and Its Annexes in a Follow-on Damages Action
On October 25, 2019, the Paris Court of Appeals ordered Renault Trucks to disclose the Commission’s statement of objections (“SO”) and its annexes in a follow-on damages action arising from the Trucks cartel.
Commission Opens Public Consultation On The Horizontal Block Exemption Regulations
On November 6, 2019, the Commission published a public consultation seeking input on the amendment of the Horizontal Block Exemption Regulations (“Horizontal BERs”), which are set to expire on December 31, 2022, and of the Horizontal Guidelines.[1] Interested parties were given until February 12, 2020 to comment on the reform of these important instruments. The consultation is part of a wider Commission evaluation to determine whether the rules should be updated to better reflect the current economy and provide clearer guidance.
Joint Study on Algorithms by German and French Competition Authorities
On November 6, 2019, the FCO and the French Competition Authority (“ADLC”) presented a joint study on “Algorithms and Competition.”[1] The study focuses on algorithms used for dynamic price setting and their potential effects on competition, particularly in the form of collusion, and contains important insights for companies utilizing third- party algorithms.
Working Group On Competition Law Discussed Changes To The European Vertical Block Exemption Regulation
On October 10, 2019, the Working Group on Competition Law held its annual meeting in Bonn. The FCO and more than 120 competition law experts discussed revisions to the European Vertical Block Exemption Regulation (“VBER”)[1] in light of the digital transformation of the economy.[2] In preparation for this meeting, the FCO had published a comprehensive background paper,[3] setting out the need for adaption and possible adjustments to the VBER to address online distribution and other challenges posed by the digital transformation of the economy.
CMA’s Increasing Enforcement Of Document Requests In Merger Review
There is a global trend of increasingly burdensome demands by competition authorities conducting merger review for the submission of merging parties’ internal documents, and the CMA is no exception. In recent months the CMA has also taken greater steps to enforce such requests, in particular by fining companies for failing to comply with formal requests for documents under Section 109 of the Enterprise Act 2002 (“Section 109 Notices”).