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.
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 French Competition Authority (“FCA”) Fines the Four Historical Meal Voucher Issuers for Exchanging Commercially Sensitive Information and Locking Their Market
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.
The French Competition Authority Fines Compote Manufacturers for Operating a Cartels
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).
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 French Administrative Supreme Court (Conseil D’Etat) Confirms the Decision to Impose a €20 Million Fine on Fnac Darty for Failure to Comply With Commitments
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]
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.
Commission Investigates Retail Grocery Sector In France
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.