On January 20, 2021, the Commission imposed fines totaling €7.8 million on Valve, the owner of the video gaming platform Steam, and five PC video game publishers[1] for breaching Article 101 TFEU. The Commission found that the companies prevented gamers from activating certain PC video games purchased from sellers in eight Central and Eastern European Member States, where prices are generally lower than in other Member States (so-called “geo-blocking”).[2] This decision is a reminder of the Commission’s strict stance on cross-border sales restrictions.
The Nuremberg-Fürth Regional Court Dismisses a Damages Action Against the Immunity Recipient in the Confectionary Cartel
On January 14, 2021, the Nuremberg-Fürth Regional Court dismissed an action for damages against a confectionery manufacturer, which participated in an information exchange in the so-called “Four Party” discussion group.[1]
The French Competition Authority Reports on Its 2020 Activity and Announces Its Enforcement Priorities for 2021
On December 23, 2020, the French Competition Authority (“FCA”) presented a summary report of its 2020 activity and set out its priorities for 2021.[1]
FCO Conditionally Clears Acquisitions in the German Food Retail Sector
Kaufland/Real and Globus/Real
On December 22, 2020, the FCO cleared the acquisitions of up to 92 “Real” retail stores from SCP Retail S.à.r.l. (“SCP”) by Kaufland Immobilien & Co. KG and Kaufland Dienstleistung GmbH (“Kaufland”)[1] and of up to 24 stores by Globus Holding GmbH & Co. KG (“Globus”).[2] The clearance of Kaufland’s acquisition was subject to Kaufland foregoing the acquisition of nine of the originally planned 101 stores to address concerns in individual local sales markets. Further, SCP undertook to sell Real stores with a total procurement volume of € 200 million p. a. to medium-sized retailers.
The Commission Publishes Report on the Implementation of the Damages Directive
CMA’s Digital Markets Taskforce Proposes a New Regulatory Regime for Digital Markets
On 15 October 2020, the Competition and Markets Authority (CMA) revoked a £300,000 penalty it had imposed on JD Sports Fashion plc for breach of an interim enforcement order (IEO) issued in connection with JD Sports’ completed acquisition of Footasylum plc. The penalty was withdrawn “[i]n light of issues raised on appeal.” This is the first time that a CMA procedural fine has been revoked or overturned on appeal. On 19 and 20 October 2020, the Competition Appeal Tribunal (CAT) heard Facebook’s appeal against the CMA’s refusal to grant a derogation from an IEO issued in connection with Facebook’s completed acquisition of GIPHY, Inc. This article considers potential implications of these cases for future UK mergers.
The French Competition Authority Fines Dammann FRères Tea for Imposing Resale Prices on Its Online Retailers
On December 3, 2020, the French competition authority (“FCA”) imposed a fine of €226,000 on Dammann Frères (“Dammann”), a producer of gourmet tea, for imposing resale prices on its online retailers.
Proposals for Reform of Competition Law Policy: Proposed Revision of the Commission’s Market Definition Guidance
Over the past several months, there have been a number of statements by politicians and Member State governments regarding the reform of EU competition law. Much of this debate is fundamentally linked to how authorities should define the relevant product and geographic markets that guide their antitrust and merger investigations.
New Investigative Power for the French Competition Authority to Access Telephone Communications Data
Decree n°2019-1247 of November 28, 2019, published in the Official Journal of the French Republic on November 29, 2019 (the “Decree”), provides the procedural framework for the FCA’s new power to access telephone communications data for the purpose of antitrust investigations under Article L. 450-3-3 of the French Commercial Code. This framework was introduced by the Pacte Law [1] and allows the FCA to request access to technical information regarding the identity of a caller, the telecommunication terminals used, the data, time, and duration of each call, and the phone numbers called. It will be operational as soon as the Data Request Supervisor (“contrôleur des demandes de données de connexion”) is appointed (the Supervisor will be appointed among the judges of the French Administrative or Civil Supreme Court).[2]
FCO Conditionally Clears Furniture Merger
On November 25, 2020, after an in-depth investigation, the FCO approved the acquisition by Mann Mobilia Beteiligungs GmbH (part of the XXXLutz Group) of 50% of the shares in Möbel Management Holding GmbH & Co. KG and Roller GmbH & Co. KG (part of the Tessner Group), subject to the divestiture of 23 furniture outlets.[1] The FCO’s clearance only relates to the sales side of the transaction, i.e., the relationship between furniture retailers and consumers, whereas on November 30, 2020, the European Commission unconditionally cleared the transaction with respect to the procurement side, i.e., the relationship between furniture retailers and manufacturers.[2]