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.
The Council of State Annuls the Judgments of the Tar Lazio That Quashed an Ica Decision Fining Bid-rigging Practices in the Home Oxygen Therapy and Home Mechanical Ventilation Sectors
Background
The decision of the ICA
On December 21, 2016, the ICA concluded its investigation into certain anticompetitive practices allegedly implemented by major firms active in the provision of home oxygen therapy (“HO”) and home mechanical ventilation (“HMV”) services. According to the ICA, Linde Medicale S.r.l. (“Linde”), Medicair Italia S.r.l. (“Medicair”), Medigas Italia S.r.l. (“Medigas”), Sapio Life S.r.l. (“Sapio”), Vitalaire Italia S.p.A. (“Vitalaire”), Vivisol S.r.l. (“Vivisol”), Eubios S.r.l. (“Eubios”), Oxy Live S.r.l. (“Oxy”), Ossigas S.r.l. (“Ossigas”), Magaldi Life S.r.l. (“Magaldi”) and Ter.gas. S.r.l. (“Ter.gas.”) participated in three separate agreements affecting the outcome of open tender procedures for the provision of HMV in part of the Milan province, HMV and HO in the Marche region and HO in the Campania region, launched by ASL Milano 1, ASUR Marche and SORESA between 2012 and 2014.[1]
2019 Reveiw
CMA Activity
In 2019, the CMA devoted considerable resources to preparing for the UK’s exit from the EU. It carried out a consultation and published guidance on the functions of the CMA after a ‘no deal’ exit from the EU. In anticipation of its increased workload, it recruited additional staff at all seniority levels and completed its move to new premises in Canary Wharf. It also increased its focus on digital markets and took a less permissive approach to gun-jumping and failures to provide full responses to formal requests for information.
The FCO’s Activities in 2019
On December 27, 2019, the FCO published a summary of its activities in 2019.[1] In 2019, the FCO imposed fines in cartel proceedings totaling approximately €848 million in five cartel proceedings, examined around 1,400 notified mergers, conducted numerous abuse of dominance proceedings (including against Facebook and Amazon), and received 104 applications for review in public procurement cases.
The European Commission Receives Feedback From National Competition Authorities on Its Review of the VBER
On December 13, 2019 the Commission published an anonymized summary of the contributions submitted by NCAs during the Commission’s ongoing evaluation of the Vertical Block Exemption Regulation (“VBER”) and the accompanying Guidelines on Vertical Restraints (“Guidelines”), which will lapse in 2022.[1] The Commission received 20 contributions from NCAs across the EEA.[2]
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 Commission Publishes Its Decision To Fine Canon For Gun-Jumping
On October 22, 2019, the Commission published its decision to fine Canon a total of €28 million for failure to file its acquisition of Toshiba Medical Systems Corporation (“TMSC”).[1] Canon acquired TMSC via a warehousing arrangement, which involved a special purpose vehicle (“SPV”) that held most of TMSC’s shares pending merger control approval.
Working Group On Competition Law Discussed Changes To The European Vertical Block Exemption Regulation
On October 10, 2019, the Working Group on Competition Law held its annual meeting in Bonn. The FCO and more than 120 competition law experts discussed revisions to the European Vertical Block Exemption Regulation (“VBER”)[1] in light of the digital transformation of the economy.[2] In preparation for this meeting, the FCO had published a comprehensive background paper,[3] setting out the need for adaption and possible adjustments to the VBER to address online distribution and other challenges posed by the digital transformation of the economy.
The Commission Unconditionally Approves BM’s Acquisition Of Celgene
On October 10, 2019, the Commission published its decision of July 29, 2019, to unconditionally approve Bristol-Myers Squibb Company’s (“BMS”) acquisition of Celgene Corporation (“Celgene”) following a Phase I review.[1] BMS and Celgene are global pharmaceutical companies.