Life Sciences & Healthcare

On June 23, 2021, the German Federal Cartel Office (“FCO”) published its Annual Report 2020/2021[1] as well as its biennial Activity Report 2019/2020. Andreas Mundt, the President of the FCO, pointed out that the FCO’s enforcement activities continue to focus on the digital economy and consumer protection—especially with the help of the FCO’s new enforcement tools created by the recently introduced 10th Amendment of the German Act Against Restraints of Competition (“ARC”)[2]. The reports also provides various enforcement statistics that show that the FCO continues to be a highly active competition law enforcer in the EU.[3]

On 17 June 2021, the CMA published a consultation document on its provisional recommendation to replace the retained EU Vertical Agreements Block Exemption Regulation (VABER) with a UK-specific Vertical Agreements Block Exemption Order (VABEO) (the CMA Consultation). Currently, agreements benefit from automatic exemption from the UK Chapter 1 Prohibition[1] (the equivalent of Article 101 TFEU) if they meet the criteria set out in the VABER.

On June 11, 2021, the French Competition Authority (“FCA”) published a draft to update its Notice on fines.[1] The draft is subject to a public consultation which was held between June 11 and 25, 2021. According to the FCA, the update was prompted by the entry into force of ordinance No.2021-649 of May 26, 2021, which implements Directive (EU) 2019/1 of the European Parliament and of the Council of December 11, 2018 (“ECN+ Directive”), whose aim is to strengthen and harmonize competition enforcement by national authorities.

On June 8, 2021, the FCO published its draft “Guidelines for the premature deletion of an entry in the Competition Register due to self-cleaning”[1] as well as its draft “Practical guide on filing an application for premature deletion”.[2] In addition, it opened public consultations on the drafts. Interested parties were invited to submit their comments by July 20, 2021.

In an order dated May 12, 2021, the Paris Court of Appeals ruled that it did not have jurisdiction to rule on Roche’s request for injunctive relief against the French Competition Authority (“FCA”), who had shared videos related to the case on social media and sent a letter to a pharmaceutical trade association in the aftermath of the publication of its prohibition  decision.[1].

On 10 May 2021, the CAT issued a supplementary judgment in the appeals against a decision of the CMA of 12 February 2016. This followed the CAT’s previous judgment of 8 March 2018, by which certain questions were referred to the Court of Justice of the European Union (CJEU). The CJEU issued its ruling on these questions on 30 January 2020.

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]

On May 3, 2021, the European Commission fined life science company Sigma-Aldrich € 7.5 million for providing incorrect or misleading information during the Commission’s 2015 review of Merck’s acquisition of the company. The fine marks another step in an increasingly stringent approach to enforcing the procedural rules that apply during the Commission’s merger control process.[1]

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.