On March 6, 2020, the Commission approved commitments presented by Transgaz, the state-owned operator of Romania’s natural gas transmission system, to address alleged restrictions on gas exports from Romania.[1]
DG COMP Responds to the COVID-19 Outbreak (March 2020)
The COVID-19 pandemic has caused significant economic disruption, including supply shortages, cost increases, and liquidity constraints resulting from a prolonged shutdown. As EU Member States and businesses respond to these challenges, and even as lockdown measures are gradually eased, their actions continue to raise potential issues under competition law.
The Cour de Cassation Issues Two Judgments Relating to the Business Secret Protection in the FCA’s Proceedings
On January 29, 2020, the Cour de Cassation issued two judgments relating to decisions from the FCA’s Rapporteur Général to waive the protection of business secrets granted to a party in proceedings before the FCA. In the first judgment, the Cour de Cassation held that the Rapporteur Général must provide concrete reasons in order to waive the protection of business secrets granted to a party in proceedings involving other parties. Conversely, in the second judgment, the proceedings did not involve any other parties, and the Cour de Cassation upheld the Rapporteur Général’s decision to waive the protection of business secrets initially granted to a party. The Cour de Cassation considered that the Rapporteur Général’s decision would not risk exposing that party’s business secrets to any third parties.
The FCA Publishes an Antitrust Practical Guide for SMEs
In February 2020, the FCA published a practical guide on the application of antitrust rules to small and medium-sized enterprises. The FCA published this guide with the knowledge that SMEs often lack the resources to be fully aware of and comply with antitrust rules.
German Government Proposes Significant Reform of Competition Law
On January 24, 2020, the German Ministry for Economic Affairs published a draft proposal for the 10th Amendment to the German Act against Restraints of Competition (“Draft Proposal”). Its main objectives are (i) to enable and strengthen the protection of competition in digital markets, (ii) to make German competition law and its enforcement more efficient in general, and (iii) to implement the ECN+ Directive[1].
The Council of State Confirms the Annulment of an ICA Decision on an Alleged Cartels in the Reinforcing Steel Bars Sector
On January 21, 2020, the Council of State confirmed the annulment of a 2017 ICA decision sanctioning a cartel between manufacturers of reinforcing steel bars (rebars) and welded wire mesh.[1] In particular, the ICA fined eight companies (namely, Feralpi Siderurgica S.p.A., Ori Martin Acciaieria e Ferriera di Brescia S.p.A., Industrie Riunite Odolesi I.R.O. S.p.A., Riva Acciaio S.p.A., Ferriere Nord S.p.A. and Fin. Fer S.p.A., Stefana S.p.A., Ferriera Valsabbia S.p.A. and Alfa Acciai S.p.A., together the “Manufacturers”) in an amount in excess of €140 million for allegedly coordinating their commercial strategies between 2010 and 2016, by fixing prices and exchanging sensitive information (among other things through the trade association Nuovo Campsider, “NC”).[2] The Council of State, fully upholding the TAR Lazio’s reasoning at first instance,[3] held that the appeal lodged by the ICA was unfounded on two fronts.
The FCA Issues a Study on Behavioral Remedies
In January 2020, the FCA published its study on behavioral remedies in merger control and anticompetitive practices.[1] The study takes stock of the FCA’s decisional practice on behavioral remedies and provides material for broader discussion amongst competition law practitioners and academics.
The Council of State Annuls an ICA Decision Sanctioning an Alleged Abuse of Dominance in the Gas Distribution Sector, by Relying on Coase’s and Hobbes’ Theories of Economic Efficiency
On January 13, 2020, the Council of State upheld the appeals lodged by E.S.TR.A. S.p.A. and its subsidiary E.S.TR.A. Reti Gas S.r.l. (together, “E.S.TR.A.”),[1] and annulled the 2012 decision in which the ICA had fined E.S.TR.A. for abusing its dominant position in a local market for gas distribution, in a case raising novel and complex issues.
FCO Imposes Further Cartels Fines
On December 19, 2019, the FCO imposed fines of €195,000 on four German suppliers of liquid gas for geographic market sharing between 2006 and 2016.[1] In setting the fines, the FCO notably considered the low impact of the cartel arrangements due to the suppliers’ small market shares.
The French Competition Authorities Announces Its Enforcement Priorities for 2020 and Creates a Dedicated Digital Department
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.