On July 9, 2019, the Commission fined Sanrio, a Japanese company that designs, produces and sells “Hello Kitty” products, €6.2 million for breaching Article 101 TFEU by imposing territorial restrictions on cross-border and online sales of merchandising products featuring Hello Kitty and other Sanrio-owned characters. The Commission granted Sanrio a 40% fine reduction in return for its cooperation.[1]
The FCJ Quashes Two DCA Decisions Due to Procedural Errors
On June 21 and July 9, 2019, the FCJ annulled two judgments of the DCA relating to the cartels in the confectionary[1] and roasted coffee[2] sectors due to procedural flaws. In both cases, the DCA had previously increased cartel fines set by the FCO. The FCJ referred both cases back to another cartel division of the DCA for a new hearing and ruling. Whether this, however, will result in an actual reduction of the fines remains to be seen.
The FCA Publishes Its 2018 Annual Report
The FCA published its 2018 annual report, which, this year, also provides an overview of the FCA’s policy and results over the last decade (see our article published in the April newsletter[1]).
European Champions Debate Continues
On July 4, 2019, France and Germany, joined by Poland, issued a joint call to modernize European competition rules (“Joint Statement”).[1] This follows the publication in February 2019 of a Franco-German Manifesto for a European industrial policy to foster the creation of European champions.[2] The Joint Statement scales back some of the Manifesto’s far-reaching ideas.
The Paris Court of Appeals Cuts the Fines Imposed by the FCA in the Millers Cartels Case
On July 4, 2019, the Paris Court of Appeals reduced the fines imposed by the FCA in the “flour” case from €242.4 million to €96.1 million.[1] The Court reduced the fines imposed on the millers while upholding the FCA’s findings on the merits. The total fine reduction was justified by (i) the shorter duration of the infringement for two millers; (ii) the ability to pay for five millers; and (iii) the existence of a price regulation until 1978, which limited the cartel’s impact on the economy.
The FCA Issued Its Second Opinion on French Overseas Territories
On July 4, 2019, the FCA issued an opinion on the functioning of competition for the importation and distribution of consumer products in French overseas territories—one of the FCA’s “priorities” for 2019.[1] The opinion assesses progresses made since the FCA issued its first opinion on French overseas territories, and extends its assessment to online restrictions.
FCO Clears Paper Dealer Merger
On July 2, 2019, after an in-depth investigation, the FCO approved the acquisition of German paper dealer Papyrus Deutschland GmbH & Co. KG (“Papyrus”) by its competitor Papier Union GmbH despite high combined market shares in the market for printing paper.[1]
New Guidelines on “Passing-on” of Overcharge and Disclosure of Confidential Information in Cartels Damages Claims
On July 1, 2019, following a one-year public consultation with national courts and other stakeholders, the Commission published new guidelines to assist national judges in estimating the “passing-on” of overcharge in cartel damages claims.[1] The guidelines are the latest step in efforts to develop a forum for antitrust damages litigation throughout Europe, given that these actions are, at present, typically confined to a small number of national jurisdictions (the U.K., the Netherlands, and Germany).
FCO Approves EDEKA’s Acquisition of Handelshof Group
On July 1, 2019, the FCO cleared EDEKA Zentrale AG & Co. KG’s (“EDEKA”) 100% acquisition of the Handelshof Management GmbH (“Handelshof group”).[1] The FCO found that the merger did not significantly impede effective competition in the food (and related non-food) product wholesale and procurement markets.
The FCA Fines a Bicycle Manufacturer for an Online Sales Ban
On July 1, 2019 the FCA imposed a fine of €250,000 on the high-end bicycle manufacturer Bikeurope B.V. and its mother company, Trek Bicycle Corporation, for having imposed and monitored an online sales’ ban on its distributors from 2007 to 2014.[1]