On June 11, 2019, the Commission prohibited the then-proposed joint venture between Tata Steel and Thyssenkrupp as the parties failed to provide commitments that fully addressed the Commission’s concerns.[1] In Thyssenkrupp’s view, offering commitments would have “adversely affected the intended synergies of the merger to such extent that the economic logic of the joint venture would no longer be valid.”[2]
The Inspection Générale Des Finances and the Conseil Général de L’éConomie Publishes a Report on EU Competition Policy and Industrial Strategy
On June 2, 2019, the Inspection générale des finances and the Conseil général de l’économie published a report on the EU competition policy and industrial strategy (the “Report”). The Report was commissioned by the Ministry of Economy and Finance in December 2018 and aimed at assessing EU competition policy in the context of the 2019 European elections. The Report highlights the necessity to reshape the procedures and legal instruments used by the European Commission, in particular in merger control, to answer a number of criticisms raised by the French and German governments following the decision of the European Commission to prohibit the Alstom- Siemens merger on February 6, 2019.[1] The Report states that competition policy seems to be applied more strictly in Europe than elsewhere, including China, and that the European Union’s strategic and industrial interests should be given more consideration in competition decisions.
British Steel/Ascoval
On May 17, 2019, the French Competition Authority (the “FCA”) unconditionally approved the acquisition of Ascoval by the British Steel group. Ascoval is a steel mill specialized in the production and supply of semi-finished steel products that are necessary for the production of finished steel products. British Steel is a European steel manufacturer that is active in the production of both semi-finished and finished steel products. Given the limited overlap between the Parties’ activities, the FCA did not identify any horizontal or vertical competition concerns arising from the transaction.
The French Conseil Constitutionnel Invalidates the Provisions of the PACTE Law Empowering the Government to Transpose the ECN+ Directive Into French Law
On May 16, 2019, the French Conseil constitutionnel validated most of the provisions of the law on business growth and transformation (“loi relative à la croissance et la transformation des entreprises” or “PACTE law”), but deemed that the provisions relating to the transposition of the ECN+ directive into French law violated the Constitution.
The Conseil Constitutionnel Validates Provisions Enabling the French Competition Authority to Request Access to Telephone Data From Companies’ Employees
On May 16, 2019, the Conseil Constitutionnel issued a decision on the conformity with the French Constitution of various provisions of the Law on the growth and the transformation of companies (“Loi Pacte”).[1] The Conseil censured several provisions of that law for the lack of connection with the initial bill. These included in particular Article 211, which provided the Government with the power to transpose the directive ECN+ into French law, and adopt various measures meant to strengthen the efficiency of procedures implemented by the FCA.
The General Court Dismisses Recylex’s Appeal Against Buyer Cartels Fine
On May 14, 2019, the General Court dismissed Recylex’s application for annulment of a Commission decision that imposed a fine on Recylex for its participation in a buyer cartel in the battery recycling sector.[1]
FCO Rapporteurs’ Opinions Protected From Access
On May 9, 2019, the German Federal Administrative Court (“FAC”) ruled that access to the preparatory notes (so-called “opinions”) of the rapporteurs of the FCO’s decision divisions under the German Freedom of Information Act is restricted, because public access to the rapporteurs’ opinions would jeopardize the decision divisions’ deliberation process.[1] The FAC thus ultimately confirmed the FCO’s denial of a journalist association’s access request to information on one of the FCO’s merger assessments, including access to the rapporteur’s opinions.
FCO Rapporteurs’ Opinions Protected From Access
On May 9, 2019, the German Federal Administrative Court (“FAC”) ruled that access to the preparatory notes (so-called “opinions”) of the rapporteurs of the FCO’s decision divisions under the German Freedom of Information Act is restricted, because public access to the rapporteurs’ opinions would jeopardize the decision divisions’ deliberation process.[1] The FAC thus ultimately confirmed the FCO’s denial of a journalist association’s access request to information on one of the FCO’s merger assessments, including access to the rapporteur’s opinions.
Lucchini Fails to “Free-ride” on Other Cartels Participants’ Successful Appeals
On May 8, 2019, the General Court held that cartel participants that do not appeal a Commission infringement decision cannot seek reimbursement of fines paid where that decision is annulled in proceedings to which they were not a party.[1]
FCO Blocks Heidelberger Druckmaschinen’s Acquisition of MBO Group
On May 7, 2019, after an in-depth investigation, the FCO prohibited Heidelberger Druckmaschinen AG’s acquisition of sheet folding machine manufacturer MBO Maschinenbau Oppenweiler Binder GmbH & Co. KG (“MBO Group”).[1] Based on an extensive market investigation, with a particular emphasis on customer feedback, the FCO found that the merger would have created a dominant position for Heidelberger Druckmaschinen AG and significantly impeded competition in the market for the manufacture and distribution of sheet folding machines for industrial printing processes.