Updated on May 10, 2022
The UK Government has published its response to the consultation on a new regulatory regime for digital markets on May 6, 2022.
Final Agreement Reached on Digital Markets Act: A Paradigm Shift In Digital Regulation
On Thursday, March 25, 2022, the European Parliament and EU Member States reached agreement on the final text of the Digital Markets Act (DMA). The DMA marks a paradigm shift in the regulation of digital markets, giving the European Commission unprecedented powers to regulate leading digital platforms and setting a global standard for other jurisdictions that are developing similar rules.
NVIDIA/Arm Transaction Collapse Signals Increased Scrutiny For Vertical Mergers
On February 7, 2022, NVIDIA announced the termination of its agreement to acquire Arm Limited (“Arm”), a UK-based semiconductor design company of the SoftBank Group.[1] Following its announcement in September 2021, the transaction, which would have been the largest of its kind in the semiconductor sector, had attracted significant regulatory interest across the globe.
Revision of Vertical Rules: Further Clarity On Dual Distribution Rules?
On February 4, 2022, the Commission released a revised draft dual distribution guidance[1] within the broader context of the ongoing review of EU vertical rules.
No FCO Investigation Into DNS Services
On February 3, 2022, the German Federal Cartel Office (“FCO”) declared that it will not—at this stage—launch an investigation in the area of Domain Name System (“DNS”) services.[1] Following indications from market participants, the FCO conducted a preliminary investigation lasting several months, but found that the suspicion of anticompetitive conduct in this field has not been substantiated.
Commission Conditionally Clears Meta’s Acquisition of Kustomer Following Phase II Investigation
On January 27, 2022, the Commission conditionally cleared Meta’s (formerly Facebook) acquisition of Kustomer, a U.S.-based Customer Relationship Management (“CRM”) software provider.[1] The transaction was initially notified in Austria in March 2021. The Austrian competition authority referred it to the Commission in April pursuant to Article 22 of the EU Merger Regulation, and several other Member States subsequently joined the referral.
Intel Corporation v Commission (Case T-286/09 RENV): General Court Quashes Intel’s €1.06 Billion Fine
On January 26, 2022, the General Court partially annulled the Commission’s decision imposing a €1.06 billion fine on Intel for abusing its dominant position through the granting of exclusivity- conditioned rebates.[1] The General Court found that the Commission had not established to the requisite legal standard that the rebates were capable of having, or were likely to have, anticompetitive effects.[2]
The Commission Publishes 1st Final Report in the Consumer IoT Sector Inquiry
On January 20, 2022, the Commission published its final report (the “Report”) in the consumer Internet of Things (“IoT”) sector inquiry.[1] The Report identifies antitrust concerns relating to consumer IoT, and sets out policy implications stemming from these concerns.
Deutsche Telekom (Case T-610/19): The General Court Orders Commission To Pay Default Interest After Fine Reduction
On January 19, 2022, the General Court ordered the Commission to pay default interest on the excess amount of a fine paid by Deutsche Telekom. The interest relates to a €31 million fine the Commission imposed on Deutsche Telekom in October 2014 for infringing Article 102 TFEU by implementing margin squeezing practices in the Slovak broadband market.
U.S. DOJ and FTC Announce Plan to Revamp Merger Guidelines
On Tuesday, January 18th, FTC Chair Lina Khan and DOJ Antitrust Division Assistant Attorney General Jonathan Kanter held a joint press conference in which they announced ambitious plans to review and update the Merger Guidelines, targeting a release of new guidelines before the end of 2022.