Technology, Media & Communications

In June 2019, the CMA published its Merger Remedy Evaluations Report (the Report) – the latest in a series of case evaluations conducted to develop the CMA’s expertise, policy, and practice on merger remedies. The Report notes that its findings will be “used to inform the way in which the CMA approaches remedy design and implementation in subsequent cases.” The Report contains useful guidance for parties on the types of remedies that the CMA is prepared to accept or may require.

On June 14, 2019, the European Council adopted the “Regulation on promoting fairness and transparency for business users of online intermediation services” (the “Regulation”).[1] The Regulation seeks to address a range of issues in online search and intermediation platform-to-business relationships. It is the first piece of EU legislation to do so.

On June 4, 2019, the Düsseldorf Court of Appeals (“DCA”) annulled the FCO’s 2015 decision prohibiting hotel booking platform operator Booking Holdings (“Booking.com”) from using narrow most favored nation (“MFN”) clauses.[1] The DCA’s decision aligns the German position with that of other European national competition authorities (“NCAs”). However, new causes of divergence—stemming from legislative interventions—are already emerging.

On June 2, 2019, the Inspection générale des finances and the Conseil général de l’économie published a report on the EU competition policy and industrial strategy (the “Report”). The Report was commissioned by the Ministry of Economy and Finance in December 2018 and aimed at assessing EU competition policy in the context of the 2019 European elections. The Report highlights the necessity to reshape the procedures and legal instruments used by the European Commission, in particular in merger control, to answer a number of criticisms raised by the French and German governments following the decision of the European Commission to prohibit the Alstom- Siemens merger on February 6, 2019.[1] The Report states that competition policy seems to be applied more strictly in Europe than elsewhere, including China, and that the European Union’s strategic and industrial interests should be given more consideration in competition decisions.

On May 22, 2019, the French Competition Authority (“FCA”) fined the Akka Group €0.9 million for obstructing its investigations into a suspected cartel in France.[1] This decision is only the second such sanction by the FCA,[2] and the first for breaking seals.

On May 20, 2019, the Italian Competition Authority (the “ICA”) issued a decision in the merger control proceedings opened in connection with Sky Italia S.r.l.’s (“SKY”) acquisition of control over R2 S.r.l. (the “Decision”).[1] Owned by Mediaset Premium S.p.A. (“MP”), R2 S.r.l. (“R2”) provides technical and administrative platform services for broadcasting by means of Digital Terrestrial Television (“DTT”).

On May 16, 2019, the French Conseil constitutionnel validated most of the provisions of the law on business growth and transformation (“loi relative à la croissance et la transformation des entreprises” or “PACTE law”), but deemed that the provisions relating to the transposition of the ECN+ directive into French law violated the Constitution.

On May 16, 2019, the Conseil Constitutionnel issued a decision on the conformity with the French Constitution of various provisions of the Law on the growth and the transformation of companies (“Loi Pacte”).[1] The Conseil censured several provisions of that law for the lack of connection with the initial bill. These included in particular Article 211, which provided the Government with the power to transpose the directive ECN+ into French law, and adopt various measures meant to strengthen the efficiency of procedures implemented by the FCA.

On May 9, 2019, the German Federal Administrative Court (“FAC”) ruled that access to the preparatory notes (so-called “opinions”) of the rapporteurs of the FCO’s decision divisions under the German Freedom of Information Act is restricted, because public access to the rapporteurs’ opinions would jeopardize the decision divisions’ deliberation process.[1] The FAC thus ultimately confirmed the FCO’s denial of a journalist association’s access request to information on one of the FCO’s merger assessments, including access to the rapporteur’s opinions.