On May 12, 2021, following an in-depth “Phase 2” review, the French Competition Authority (“FCA”) issued its second ever merger control prohibition decision, as it considered that Ardian’s proposed acquisition of sole control over pipeline company Société du Pipeline Méditerrannée-Rhône (“SPRM”) raised serious competition concerns.[1]
The Commission Proposes a Draft Regulation to Tackle Potential Distortions Caused by Foreign Subsidies
Background
On May 5, 2021, the Commission proposed a draft regulation to tackle potential distortions in the internal market caused by foreign subsidies (“Draft Regulation”).[1]
Joint Statement by the CMA, ACCC and Bundeskartellamt on the Need for Rigorous Merger Enforcement
In recent years, the CMA has been strengthening its approach to merger control as it prepares for its new status as a global enforcer with expanded jurisdiction following the UK’s exit from the EU. Since 1 January 2021, the CMA has been able to investigate the UK aspects of mergers that also qualify for review by the EU Commission (EC). Many transactions, including major global deals, are therefore now subject to parallel review by the EC and CMA.
The Conseil Constitutionnel Holds That Article L. 464-2(5), 2° of the French Commercial Code Is Contrary to the Constitution
On March 26, 2021, the French Conseil constitutionnel ruled that Article L. 464-2(5), 2° of the French Commercial Code, under which the French Competition Authority (“FCA”) may impose a fine of up to 1% of an undertaking’s turnover for obstructing an investigation, was contrary to the French Constitution.[1]
Transforming European Merger Control: The Commission Specifies When It Will Seek To Review Mergers That Are Not Subject to Any Filing Requirements
Pometon v. Commission: The Court of Justice Sheds Light on the Principle of Equal Treatment and the Presumption of Innocence in Hybrid Cartels Settlements
On March 18, 2021, the Court of Justice ruled on Pometon SpA (“Pometon”)’s appeal against the General Court’s judgment in the steel abrasives[1] hybrid cartel settlement case. The Court of Justice ruled that the General Court had breached the principle of equal treatment when recalculating the fine imposed on Pometon by the Commission in 2016, the only non-settling party in this case. The Court of Justice therefore further reduced Pometon’s fine to €2.6 million, imposing an approximate 60% discount on the original fine calculated by the Commission.[2]
CMA publishes new Merger Assessment Guidelines
On 18 March, the CMA published new Merger Assessment Guidelines (the New Guidelines). Under the New Guidelines, the CMA will adopt a more flexible approach to the substantive assessment of mergers, particularly in digital markets. The New Guidelines also suggest the CMA will look to intervene in mergers where market shares are low or where the evidence of anticompetitive effects is slim.
Commission Says PPC Might Have Engaged in Predatory Bidding and Hindered Greece’s Efforts To Go Green
On March 16, 2021, the Commission announced the opening of a formal investigation into Public Power Corporation (“PPC”), the largest wholesale and retail electricity supplier in Greece, and majority-owned by the Greek State, for allegedly abusing its dominance in the Greek wholesale electricity sector through predatory pricing strategies arising from its bidding behavior.[1]
The ICA Accepts Commitments by Italgas Reti for an Alleged Abuse of Dominance in the Gas Distribution Sector
On February 23, 2021, the Italian Competition Authority (the “ICA”) made legally binding the commitments offered by Italgas Reti S.p.A. (“Italgas”), a company active in the gas distribution sector in the province of Venice, which belongs to the Italgas group (the “Decision”).[1] Italgas’ commitments were found to address adequately the ICA’s concerns that the company may have abused its dominant position in the local market for the provision of natural gas distribution services, in violation of Article 102 TFEU. According to the ICA’s decision to open the investigation, Italgas’ conduct was allegedly aimed at delaying the launch in 2018 of an open tender procedure for the provision of gas distribution services in a number of municipalities in the province of Venice (the “Tender”).
The French Competition Authority Dismisses Interim Measures Against French Electricity Supplier EDF
On February 18, 2021, the FCA announced that it had denied interim measures requested by Plüm Energie, a competing electricity supplier, to prevent Électricité de France (“EDF”) from allegedly abusing its dominant position in the French market for the supply of electricity.