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]
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.
First Article 22 EUMR ‘Below Threshold’ Upward Referral After Commission’s Recent Policy Change
On April 19, 2021, the Commission accepted a referral request by the French competition authority of genomic sequencing company Illumina’s planned acquisition of biotech company Grail under Article 22 EUMR.[1] This marks the first effective upward referral of a ‘below threshold’ transaction, i.e., a transaction that neither meets national nor EU merger control thresholds.[2]
The Conseil d’Etat Holds That It Is Not Competent To Hear an Objection Against an FCA’s Referral of a Merger to the Commission
On April 1, 2021 the Conseil d’Etat ruled that it lacks jurisdiction to review a French Competition Authority (“FCA”) decision referring a contemplated merger to the European Commission (“Commission”) under Article 22 of the EU Merger Regulation (“EUMR”).[1]
ICA Fully Dismisses Allegations of an Abuse of a Dominant Position in the Market for Maintenance of High-tech Diagnostic Imaging Devices
On March 30, 2021, the Italian Competition Authority (the “ICA”) closed an investigation against three equipment manufacturers in the market for maintenance of high-tech diagnostic imaging devices, without finding any abuse of dominant position. The ICA found that the evidence collected during the investigation did not allow to confirm the allegations put forward at the beginning of the investigation.[1]
Green Light For Emergency Platform for Vaccination Equipment
On March 29, 2021, the FCO cleared the way for full-line pharmaceutical wholesalers’ participation in the VCI Emergency Platform for Vaccination Equipment (“Emergency Platform”).[1]
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
The Court of Justice’s Lundbeck Ruling Finds Nothing New Under the Sun for By-object Restrictions
On March 25, 2021, the Court of Justice dismissed the appeals of H. Lundbeck A/S and Lundbeck Limited (“Lundbeck”), as well as of certain generic drugmakers (“generics”),[1] against the General Court judgments upholding the first-ever so-called pay-for-delay Commission decision.
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.