On November 14, 2019, the Court of Justice dismissed an appeal brought by Silec Cable.[1] In particular, the Court rejected Silec’s claims that the General Court had (i) incorrectly interpreted the content of its email communications as evidencing its involvement in the cartel; (ii) erroneously applied the legal test of public distancing from the cartel (i.e., Silec was not required to distance itself as it did not participate in any meetings); and (iii) wrongly denied them a ‘fringe player’ status, compared to another cartel participant, refusing to grant a fine reduction on this basis.
The Paris Court of Appeals Quashes a Landmark FCA Decision on Excessive Pricing
On November 14, 2019, the Paris Court of Appeals annulled a decision of the French Competition Authority (“FCA”) which, for the first time since the 2011 Fining Guidelines, had fined a company for abusing its dominant position through excessive pricing.[1] The Court set the conditions for finding exploitative abuses and held that the FCA had failed to show that Sanicorse’s price increases were “objectively unfair”.
R (on behalf of British Gas Trading Limited) v The Gas and Electricity Markets Authority
On 13 November 2019, the High Court upheld a judicial review challenge to Ofgem’s decision on the implementation of a tariff cap and the calculation of the wholesale energy cost allowance for the first period of the price cap (Q1 2019). The CMA investigated the energy supply market in June 2016 and concluded that there was ineffective competition in the energy supply market, which had resulted in higher default tariffs being charged to customers.
The General Court Dismisses Campine’s Appeal Against Buyer-cartels Fine
On November 7, 2019, the General Court dismissed an appeal brought by Campine against an €8.16 million fine imposed by the Commission for its participation in the battery recycling purchasing cartel.[1] Campine sought annulment of the fine, and challenged in particular the 10% increase in the fine that the Commission imposed on account of it being a purchasing cartel.
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.
The Court Of Justice Issues Judgments In Four Power Cables Cases
In November 2019, the Court of Justice issued judgments in four cases arising out of the Commission’s 2014 decision in Power Cables. In the decision, the Commission found several European, Japanese, and Korean high-voltage power cables producers to have engaged in a cartel and imposed fines totaling €302 million.[1] The scope of the infringement included both the power cables and their accessories. Most of the addressees challenged the decision in the General Court, in each case unsuccessfully, and subsequently in the Court of Justice. This month, the Court of Justice rendered judgments on the appeals filed by ABB Ltd and ABB AB (“ABB”), Silec, Brugg Kabel, and LS Cable, partially upholding ABB’s appeal while dismissing the other three appeals.[2]
ICA Imposes Interim Measures in Abuse of Dominance Case in Market for Management of Plastic Waste Recycling Services
On October 29, 2019, the Italian Competition Authority (the “ICA”) issued a decision (the “Decision”)[1] imposing interim measures on the Italian Consortium for the Collection, Recycling and Recovery of Plastic Packaging (“COREPLA”) in the framework of the investigation it opened six months earlier into COREPLA’s alleged abuse of dominant position in the market for management of plastic waste recycling services. According to the ICA, the interim measures will prevent serious and irreparable harm to competition likely to be caused by COREPLA’s conduct, which prima facie constitutes an infringement of Article 102 TFEU.
The Court of Justice Upholds Dismissal Of Alcogroup’s Appeal Concerning Access To Legally Privileged Documents During A Dawn Raid
On October 17, 2019, the Court of Justice upheld the General Court’s judgment of April 10, 2018, dismissing ethanol producer Alcogroup’s appeal against a Commission decision to carry out a dawn raid during which the Commission allegedly read potentially legally privileged documents.[1] According to the Court of Justice, irregularities during a dawn raid may only result in the annulment of subsequent Commission decisions and not the prior decision authorizing the dawn raid in question. This judgment highlights the need for legal counsel to closely monitor dawn raids, to ensure that Commission officials do not read or seize legally privileged documents.
The TAR Lazio Reviews ICA Decisions on Alleged Abuses of Dominant Position in the Retail Supply of Electricity
On October 17, 2019, the Regional Administrative Tribunal for Latium (the “TAR Lazio”) ruled on appeals by companies belonging to the Enel and Acea groups, two major energy firms active, among others, in the distribution and sale of electricity in Italy, against Italian Competition Authority (“ICA”)’s decisions finding that the two incumbents had abused their dominant position in local markets for retail electricity supply.[1]