Consumer Goods & Retail

In 2021, the German Federal Cartel Office (“FCO”) concluded three major proceedings on resale price maintenance and vertical price fixing.  It fined five musical instrument companies a total of € 21 million for resale price maintenance and horizontal price-fixing, a backpack maker € 2 million for setting minimum retail prices, and consumer electronics manufacturer € 7 million for resale price maintenance.  These cases illustrate that the FCO considers resale price maintenance a serious infringement for which it imposes significant fines.

In 2021, the German Federal Cartel Office (“FCO”) concluded a long-lasting proceeding into price fixing and information exchange in the stainless steel sector after it had already in early 2021 fined steel forgers € 35 million for information[1], while it unsuccessfully defended its decision relating to an alleged “Kölsch” beer cartel before the Düsseldorf Court of Appeal (“DCA”).  The FCO will find itself before the courts again soon as it has appealed the DCA’s “Kölsch” beer cartel judgment and two undertakings have appealed the FCO’s stainless steel cartel decision.

On November 24, 2021, the Paris Court of Appeals overruled the Paris Commercial Court’s dismissal of the follow-on damage claim brought by two supermarket chains in the dairy products case.[1] The Court of Appeals considered that the applicants had sufficiently substantiated the economic assessment of their harm. It also considered that they had only partially passed on the additional costs and therefore could claim damages for the costs that had not been passed on to consumers.

On November 18, 2021, the Commission published its communication entitled “a competition policy fit for new challenges” (the “Communication”).[1] The Communication identifies several areas where an adjusted competition policy could help overcome new challenges the European economy is facing. In particular, the Communication discusses competition policy’s role in Europe’s economic recovery from the COVID-19 pandemic, in supporting the European green[2] and digital transition,[3] and in strengthening the Single market’s resilience.

In a judgment dated October 19, 2021, the Cour de cassation quashed a Paris Court of Appeal’s judgment invalidating inspections carried out by the French Competition Authority (“FCA”) at Swarovski France’s (“Swarovski”) headquarters in July 2019.[1] The judgment is in line with recent Cour de cassation rulings favorable to the FCA.

October 13, 2021 marked the end of Isabelle de Silva’s five-year term as President of the FCA.

The Commission is returning to the office; but not just to its own. It recently launched dawn raids in three separate investigations and warned of more to come after two years of inactivity in this regard. The COVID-19 pandemic made it impracticable for the Commission to conduct dawn raids, let alone coordinate in multiple countries at once. The receding pandemic, however, allows for a rise in dawn raids.

On October 11, 2021, the FCO published two new guidelines, the leniency guidelines and guidelines on the setting of antitrust fines.[1]  Both guidelines reflect revisions to the Act against Restraints of Competition (“ARC”) resulting from the 10th Amendment of the ARC earlier in 2021.[2]  While the leniency program was legally anchored only by the 10th Amendment of the ARC, the FCO’s new leniency guidelines largely correspond to the former guidelines as issued in 2000 and updated in 2006.  In contrast, the FCO’s new fining guidelines substantiate several important methodical changes introduced to the law by the 10th Amendment of the ARC and implement judicial practice which has in the past differed considerably from the FCO’s principles in some cases.

On September 10, 2021, the European Commission published a policy brief on “Competition Policy in Support of Europe’s Green Ambition” (the “Policy Brief”).[1] A year after Executive Vice-President Margrethe Vestager called for a greener EU competition policy,[2] the Policy Brief summarizes the key takeaways from the stakeholder consultation and sets out the Commission’s ambitions for a greener competition policy. The key message being that “a green competition policy still has to be – well, a competition policy.”[3]