Consumer Goods & Retail

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.

On December 17, 2019, the FCA issued fines of nearly 415 million euros to the four historical issuers of meal vouchers in France – namely Edenred France, Natixis Intertitres, Sodexo Pass France, and Up – as well as the Centrale de Règlement des Titres (“CRT”) for exchanging confidential commercial information and implementing market locking practices.

On December 17, 2019, the French Competition Authority (“FCA”) fined six compote manufacturers for a total of 58.3 million euros for price fixing and market sharing practices. The fines were imposed on Materne(13.6 million euros), Andros (14.1 million euros), Conserves France (1.9 million euros), Délis SA (9.5 million euros), Charles Faraud (16.4 million euros) and Valade (2.8 million euros).

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]

On November 7, 2019, the Conseil d’Etat upheld the FCA decision imposing a €20 million fine on Fnac Darty for failing to comply with the commitment to divest three stores, pre-condition for clearance in the acquisition of Darty by Fnac in 2016.[1]

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.

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.

On November 3, 2019, the Commission opened a formal investigation of potential anticompetitive coordination between two French supermarket chains, Casino and Intermarché. The Commission suspects that the parties’ 2014 joint purchasing alliance, Intermarché-Casino Achats, might have led to them colluding in certain downstream markets, in particular on the development of shop networks and consumer pricing.[1] The Commission’s decision to open an investigation follows the dawn raids that it carried out in May 2019 in cooperation with the French Competition Authority, as reported in our May EU Competition Law Newsletter.

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.