On July 15, 2019, the Commission published its annual report on competition policy, setting out the Commission’s main policy and legislative initiatives, and key decisions adopted in 2018.
Industries
The Paris Court of Appeals Rules That Undertakings May Challenge the Proportionality of Fines Imposed in Settlement Proceedings
By Cleary Gottlieb on
On June 13, 2019, the Paris Court of Appeals ruled that an undertaking can challenge the proportionality of a fine set by the FCA within the range agreed with the Rapporteur Général during a settlement procedure.[1]
General Court Rejects Appeals In The Optical Disc Drive Cartels
By Cleary Gottlieb on
On July 12, 2019, the General Court rejected five appeals against a 2015 Commission decision imposing a total fine of €116 million on five cartel participants for colluding to rig optical disc drive (“ODD”) procurement tenders organized by Dell and Hewlett-Packard (“HP”).[1] The judgment serves as a reminder of the discretion the Commission enjoys when imposing cartel fines, and the General Court’s tendency to defer to the Commission’s cartel policy.
The Paris Court of Appeals Upholds the FCA’s Decision Against Janssen- Cilag’s Defamatory Practices
By Cleary Gottlieb on
On July 11, 2019, the Paris Court of Appeals dismissed most of the pharmaceutical company Janssen-Cilag’s claims in its appeal against the FCA decision fining it for delaying market entry of a generic drug[1], thereby essentially upholding the FCA’s third decision fining a pharmaceutical company for denigrating generic drugs after Sanofi-Aventis[2] and Schering-Plough.[3]
The Council of State Grants the ICA’s Appeal and Reverses the Lower Court’s Ruling Annulling a 2015 Decision Concerning an Unlawful Concerted Practice in the Railways Supply Sector Among Suppliers of Goods and Electromechanical Services for the Railway Sector
By Cleary Gottlieb on
On July 11, 2019, the Council of State set aside a judgment issued by the TAR Lazio in 2016,[1] which had annulled an ICA decision fining Firema S.p.A. (“Firema”) approximately €230,000 for its participation, together with 12 other undertakings, in a single and continuous infringement by object consisting of a secret concerted practice in the context of 24 tender procedures for the purchase of goods (mostly coils for electric traction motors) and electromechanical services (mostly repair and maintenance of those engines) for the railway sector called by awarding authority Trenitalia S.p.a.[2]
FCO Blocks Waste Recycling Deal
By Cleary Gottlieb on
On July 11, 2019, the FCO prohibited waste disposal company Remondis SE & Co. KG’s (“Remondis”) acquisition of the dual system for packing recycling DSD – Duales System Holding GmbH & Co KG (“DSD”).[1]
DCA Dismisses MVV’s Appeal to Prevent EnBW’s Blocking Minority
By Cleary Gottlieb on
On July 10, 2019, the DCA rejected German energy supplier MVV Energie AG’s (“MVV”) appeal against the FCO’s clearance decision, allowing its competitor EnBW Energie Baden- Württemberg AG (“EnBW”) to increase its stake to a minority shareholding of 28.76% in MVV.[1]
Court of Justice Annuls ICAP’s Cartels Fine Due to the Commission’s Failure to Sufficiently Explain Fine Calculation Methodology
By Cleary Gottlieb on
On July 10, 2019, the Court of Justice upheld the General Court’s partial annulment of the Commission’s 2015 decision to fine the UK-based broker, ICAP, €14.9 million for facilitating a cartel in the Yen Interest Rate Derivatives (“YIRD”) market between 2007 and 2010, confirming that the Commission had failed to adequately explain its fine calculation.
GSK’s Acquisition of Pfizer’s Consumer Health Business Cleared Subject to Remedies
By Cleary Gottlieb on
On July 10, 2019, the Commission conditionally cleared GlaxoSmithKline’s (“GSK”) acquisition of Pfizer’s Consumer Health Business following a Phase I review.[1] The transaction forms part of GSK’s and Pfizer’s plan to contribute their respective consumer healthcare businesses to a new venture, over which GSK will have sole control.
Hello Kitty Joins the Vertical Restraints Club
By Cleary Gottlieb on
On July 9, 2019, the Commission fined Sanrio, a Japanese company that designs, produces and sells “Hello Kitty” products, €6.2 million for breaching Article 101 TFEU by imposing territorial restrictions on cross-border and online sales of merchandising products featuring Hello Kitty and other Sanrio-owned characters. The Commission granted Sanrio a 40% fine reduction in return for its cooperation.[1]