On February 15, 2022, the Italian Competition Authority (the “ICA”) accepted the commitments proposed by Telecom Italia S.p.A. (“TIM”), Fastweb S.p.A. (“Fastweb”), FiberCop S.p.A. (“FiberCop”), Tiscali Italia S.p.A. (“Tiscali”), Teemo Bidco S.r.l. (“Teemo”) and KKR & Co. Inc. (“KKR” and, together with TIM, Fastweb, FiberCop, Tiscali and Teemo, the “Parties”) with respect to certain agreements concerning the creation of FiberCop and access to its infrastructure (the “Decision”).[1]
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.
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.
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.
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.
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]
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.
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.
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.
In the 2021 edition of this memo, we wrote that antitrust in 2020 received more political and media attention than at any recent time. 2021 beat that standard in multiple ways, and 2022 looks to continue that trend. In addition to continuing the major tech cases brought under the Trump administration, 2021 saw unprecedented levels of legislative activity in antitrust (both federal and state), competition policy taking a leading position across federal agencies and startling new approaches at the Federal Trade Commission (FTC) in particular – new approaches that, while they haven’t yet produced a wave of new enforcement actions, have required changes in thinking about and approaching antitrust issues. We expect these trends to accelerate in 2022.