On April 29, 2021, the French Competition Authority (“FCA”) issued its opinion on the competitive situation in the payment sector (the “Opinion”).[1] Although the Opinion concludes that recent developments—including the introduction of new technologies in payment activities and the proliferation of FinTech companies—are “overall procompetitive”,[2] it raises a number of areas of potential concern on which the FCA pledges to keep a close eye. The Opinion particularly stresses the risks stemming from the expansion of BigTech in the sector.
Industries
First Article 22 EUMR ‘Below Threshold’ Upward Referral After Commission’s Recent Policy Change
By Cleary Gottlieb on
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]
Roland (U.K.) Limited and another v Competition and Markets Authority
By Cleary Gottlieb on
On 19 April 2021, the CAT dismissed Roland’s appeal against a £4 million fine imposed by the CMA (see UK Competition Newsletter, August – September 2020). Roland appealed, alleging that the CMA’s fine overstated the seriousness of the infringement and that the CMA’s leniency discount had been too low.
Commission Sends Apple a Statement of Objections Alleging Apple Abused Its Dominant Position to Advantage Its Music Streaming Service
By Cleary Gottlieb on
On April 30, 2021, the European Commission issued a Statement of Objections to Apple alleging it abused its dominant position in the market for the distribution of music streaming apps.[1] The Commission’s investigation follows Spotify’s complaint filed in March 2019,[2] and marks the first major procedural development in the four investigations opened against Apple in June 2020.[3]
Another Brick in the Wall: The Court of Justice Confirms the (Not So) Rebuttable Presumption of Parental Liability for Holding Companies
By Cleary Gottlieb on
OTC Computers Limited (In Liquidation) v Infineon Technologies AG and Micron Europe Limited
By Cleary Gottlieb on
On 14 April 2021, the Court of Appeal dismissed an appeal by Infineon and Micron against a High Court judgment…
Rome Court of Appeal Dismisses Appeal on a Follow-on Action for Damages and Orders the Incumbent in the Italian Electronic Communications Sector To Pay Approximately €5 Million in Damages
By Cleary Gottlieb on
On April 13, 2021, the Rome Court of Appeal rejected the appeal brought by Telecom Italia S.p.A. (“TIM”) against a judgment of the Court of Rome in a follow-on action for damages.[1] The Court of Rome had ordered TIM to pay COMM 3000 S.p.A. (formerly KPNQwest S.p.A., “COMM 3000”) approximately €8 million in damages for alleged abuse of dominant position in the market for the provision of wholesale access services. The ICA had imposed a fine for the alleged abuse in 2013.[2]
FCO Terminated Proceedings After Liebherr Adjusted Requirements for Online Sales
By Cleary Gottlieb on
Following the FCO’s intervention, Liebherr- Hausgeräte Vertriebs- und Service GmbH (“Liebherr”) dropped certain sales conditions which in the FCO’s preliminary view would have resulted in disadvantaging online sales compared to sales in brick-and-mortar shops.[1]
Air Canada Grounds Plans To Acquire Transat Facing Headwinds From the European Commission
By Cleary Gottlieb on
On April 2, 2021, Air Canada announced that it had abandoned its plan to acquire Transat, a competing operator in the market for air transport services between Canada and the EEA. The deal was notified on April 16, 2020 and after one year of discussions and repeated suspensions of the investigation by the Commission, Air Canada decided to abandon the €127 million deal.
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
By Cleary Gottlieb on
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]