Industries

On January 27, 2021, the Commission published its decision to conditionally approve Novelis’ acquisition of Aleris, two suppliers of flat-rolled aluminum sheets.[1]

The Commission pushed the boundaries of its own powers in merger control proceedings, both in terms of substance and procedure. With respect to substance, the Commission introduced in its decision a new theory of harm for the competitive analysis of transactions, particularly with respect to markets affected by significant capacity constraints. From a procedural standpoint, the Commission adopted far-reaching measures to enforce the commitments that had been offered– and eventually infringed–by the parties to the transaction.

In connection with the forthcoming transposition of Directive No. 2019/1 (the “ECN+ Directive”), which exposes professional associations to higher fines for anti-competitive practices, the French Competition Authority (“FCA”) has published a study on how competition law applies to professional associations and made a number of practical recommendations.[1]

On January 27, 2021,[1] the Court of Justice confirmed a 2018 General Court judgment,[2] upholding a 2014 Commission decision which found Goldman Sachs jointly and severally liable, together with its former subsidiary Prysmian, for Prysmian’s participation in a cartel. The judgment strengthens the parental liability doctrine with potential implications for financial investors.

On 27 January, the CMA published guidance for businesses on the application of UK competition law to co-operative agreements aimed at achieving environmental or sustainability objectives (the Guidance). The role of competition law in supporting environmental initiatives has seen greater focus as the UK government pursues its 2050 net zero target and the European Union seeks to become the first climate-neutral continent by 2050 (discussed here). The Guidance explains the application of existing block exemptions and guidance for firms assessing whether agreements with sustainability objectives risk infringing competition law, and is part of a wider programme of activities that the CMA is carrying out to support sustainability objectives.

On 26 January 2021, the CAT published notice of a claim for damages by Kerilee Investments Limited (Kerilee) against the International Tin Association Ltd (ITA). Kerilee is a metal trading SME, incorporated in the UK. The ITA is a UK-based and incorporated trade association and special purpose entity incorporated by guarantee in the UK. The ITA is responsible for the governance, policy, financial, executive and secretariat functions of the International Tin Supply Chain Initiative (ITSCI) conflict mineral due-diligence programme.

On 26 January 2021, the CAT published an application to commence a collective proceedings order against BT for charging excessive prices to customers supplied with certain residential landline services. The claim arises from a review of the market for standalone landline telephone services conducted by Ofcom in 2017. Ofcom found that BT charged prices above the competitive level to customers who bought standalone residential landline telephone services (voice only customers).

On January 22, 2021, the Commission published the non-confidential version of its July 2020 settlement decision, fining three purchasers of ethylene[1] a total of €260 million for infringing Article 101 TFEU.[2] The case is only the second purchaser cartel sanctioned by the Commission under the 2006 Fining Guidelines, after its Car battery recycling decision.[3]

On January 20, 2021, the Criminal Chamber of the Cour de cassation ruled that none of the attorney-client communications relating to the exercise of the client’s rights of defence could be seized during dawn raids, even those that were not related to the antitrust case in relation to which the dawn raids were carried out.