On May 20, 2021, the Commission issued a decision fining several banks for participation in an alleged cartel in European government bonds (“EGB”) trading.[1] The Commission decision found that seven investment banks (Bank of America, Natixis, Nomura, UBS, UniCredit, RBS, and WestLB (now called Portigon)) participated in an alleged collusive scheme aimed at distorting competition in purchasing and trading EGBs.[2] EGBs are financial instruments issued on the primary market for the purposes of raising debt capital by the governments of the Eurozone Member States. Once bought by “primary dealers” in primary market auctions, EGBs are traded on the secondary market among investors and financial institutions.
The General Court Rules on Two Commission State Aid “Tax Ruling” Decisions: Annuls in Amazon, Upholds in Engie
On May 12, 2021, the General Court handed down two judgments on the Commission’s review under EU State aid rules of tax rulings in which the Luxembourg tax authorities had clarified in advance how national taxation provisions will apply to specific companies.
The Commission Proposes a Draft Regulation to Tackle Potential Distortions Caused by Foreign Subsidies
Background
On May 5, 2021, the Commission proposed a draft regulation to tackle potential distortions in the internal market caused by foreign subsidies (“Draft Regulation”).[1]
Joint Statement by the CMA, ACCC and Bundeskartellamt on the Need for Rigorous Merger Enforcement
In recent years, the CMA has been strengthening its approach to merger control as it prepares for its new status as a global enforcer with expanded jurisdiction following the UK’s exit from the EU. Since 1 January 2021, the CMA has been able to investigate the UK aspects of mergers that also qualify for review by the EU Commission (EC). Many transactions, including major global deals, are therefore now subject to parallel review by the EC and CMA.
The French Competition Authority Releases Its Opinion on New Payment Technologies
On April 29, 2021, the French Competition Authority (“FCA”) issued its opinion on the competitive situation in the payment sector (the “Opinion”).[1] Although the Opinion concludes that recent developments—including the introduction of new technologies in payment activities and the proliferation of FinTech companies—are “overall procompetitive”,[2] it raises a number of areas of potential concern on which the FCA pledges to keep a close eye. The Opinion particularly stresses the risks stemming from the expansion of BigTech in the sector.
Another Brick in the Wall: The Court of Justice Confirms the (Not So) Rebuttable Presumption of Parental Liability for Holding Companies
The Conseil Constitutionnel Holds That Article L. 464-2(5), 2° of the French Commercial Code Is Contrary to the Constitution
On March 26, 2021, the French Conseil constitutionnel ruled that Article L. 464-2(5), 2° of the French Commercial Code, under which the French Competition Authority (“FCA”) may impose a fine of up to 1% of an undertaking’s turnover for obstructing an investigation, was contrary to the French Constitution.[1]
Transforming European Merger Control: The Commission Specifies When It Will Seek To Review Mergers That Are Not Subject to Any Filing Requirements
CMA publishes new Merger Assessment Guidelines
On 18 March, the CMA published new Merger Assessment Guidelines (the New Guidelines). Under the New Guidelines, the CMA will adopt a more flexible approach to the substantive assessment of mergers, particularly in digital markets. The New Guidelines also suggest the CMA will look to intervene in mergers where market shares are low or where the evidence of anticompetitive effects is slim.
Dortmund Regional Court Aligns Principles for Jurisdiction With EU Law
On February 10, 2021, the Dortmund Regional Court set out principles for determining jurisdiction, specifically in competition damages litigation.[1]