Technology, Media & Communications

On May 12, 2021, the General Court handed down two judgments on the Commission’s review under EU State aid rules of tax rulings in which the Luxembourg tax authorities had clarified in advance how national taxation provisions will apply to specific companies.

Background

On May 5, 2021, the Commission proposed a draft regulation to tackle potential distortions in the internal market caused by foreign subsidies (“Draft Regulation”).[1]

On April 29, 2021, the French Competition Authority (“FCA”) unconditionally cleared Vivendi’s acquisition of Prisma Media, a French press publishing group.[1] The FCA found that the proposed transaction did not create any significant impediment to effective competition, despite the existence of conglomerate relationships between the Parties’ activities.

On April 27, 2021, the Italian Competition Authority (the “ICA”) imposed a fine of €102 million on Alphabet Inc., Google LLC and Google Italy S.r.l. (together, “Google”) for an alleged refusal to allow an electric vehicle (“EV”) charging app developed by Enel X (named “JuicePass”) to be published on Google’s Android Auto platform.[1]

In recent years, the CMA has been strengthening its approach to merger control as it prepares for its new status as a global enforcer with expanded jurisdiction following the UK’s exit from the EU. Since 1 January 2021, the CMA has been able to investigate the UK aspects of mergers that also qualify for review by the EU Commission (EC). Many transactions, including major global deals, are therefore now subject to parallel review by the EC and CMA.

On April 30, 2021, the European Commission issued a Statement of Objections to Apple alleging it abused its dominant position in the market for the distribution of music streaming apps.[1] The Commission’s investigation follows Spotify’s complaint filed in March 2019,[2] and marks the first major procedural development in the four investigations opened against Apple in June 2020.[3]

On April 13, 2021, the Rome Court of Appeal rejected the appeal brought by Telecom Italia S.p.A. (“TIM”) against a judgment of the Court of Rome in a follow-on action for damages.[1] The Court of Rome had ordered TIM to pay COMM 3000 S.p.A. (formerly KPNQwest S.p.A., “COMM 3000”) approximately €8 million in damages for alleged abuse of dominant position in the market for the provision of wholesale access services. The ICA had imposed a fine for the alleged abuse in 2013.[2]