Industries

On March 2, 2020, after an in-depth investigation, the FCO approved cinema operator Vue Nederland B.V. (“Vue Group”)’s acquisition of its competitor Edge Investments B.V., 2015 First Holding GmbH, and Greater Union International GmbH. [1] The approval is subject to the divestment of cinemas in six regions. The Vue Group operates 31 cinemas in Germany, 30 under the brand “CinemaxX”. The targets operate 53 cinemas in Germany, 51 under the brand “Cinestar”.

The COVID-19 pandemic has caused significant economic disruption, including supply shortages, cost increases, and liquidity constraints resulting from a prolonged shutdown. As EU Member States and businesses respond to these challenges, and even as lockdown measures are gradually eased, their actions continue to raise potential issues under competition law.

On February 26, 2020, the Court of Rome issued a non-final judgment in an action for damages brought by Siportal S.r.l. (“Siportal”) against Telecom Italia S.p.A. (“TIM”) in follow-on litigation for an alleged abuse of dominance in the provision of wholesale access services,[1] which had been found and fined by ICA in 2013. The Court rejected TIM’s claim that the limitation period had expired, found that TIM had committed an abuse against Siportal, and asked the ICA to assist the Court with respect to the determination of the quantum of damages pursuant to Article 14(3) of Legislative Decree No. 3/2017.[2]

On February 25, 2020, the Italian Competition Authority (the “ICA”) imposed on Telecom Italia

S.p.A. (“TIM”) a fine of approx. € 116.1 million for abusing the dominant position it held both in the national market for wholesale access services to, and in the national market for retail telecommunications services on, the broadband (“BB”) and ultra-broadband (“UBB”) fixed network, in violation of Article 102 of the Treaty on the Functioning of the European Union (the “TFEU”).[1]

On February 21, 2020, the Commission fined hotel group Meliá €6.7 million for restricting cross-border sales through the terms of its hotel accommodation agreements with tour operators.[1] These terms allegedly forced tour operators to discriminate between EEA customers based on their country of residence. The Meliá decision is noteworthy for two reasons. It reiterates the Commission’s strict stance on any measures partitioning the EU Single Market, a theory of harm the Commission has applied frequently in recent years. It also continues the Commission’s now frequent practice of rewarding cooperation in non-cartel cases.

On February 20, 2020, the Paris Commercial Court dismissed the damages claim brought by various entities of Belgian retail group Louis Delhaize following the French Competition Authority’s 2015 sanction decision in the Dairy Products case.6[1]The Court considered that the claimants’ economic assessment of their harm was insufficiently substantiated, whereas the defendants were able to successfully raise the passing-on defense.

On February 19, 2020, the Commission unveiled its strategy to “shape Europe’s digital future.”[1] This strategy identifies three key objectives: invest in technology that works for people (which includes investment in connectivity, discussions over a framework for AI, cybersecurity, and data literacy), develop a fair and competitive economy (which focuses on the creation of a single market for data and the use of competition law policies to level the playing field), and create an open, democratic, and sustainable society.