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.
Generics (UK) Limited and Others v Competition and Markets Authority
On 10 May 2021, the CAT issued a supplementary judgment in the appeals against a decision of the CMA of 12 February 2016. This followed the CAT’s previous judgment of 8 March 2018, by which certain questions were referred to the Court of Justice of the European Union (CJEU). The CJEU issued its ruling on these questions on 30 January 2020.
The Commission Proposes a Draft Regulation to Tackle Potential Distortions Caused by Foreign Subsidies
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]
The Commission Fines Sigma-aldrich €7.5 Million for Providing Incorrect Information During Merger Review
On May 3, 2021, the European Commission fined life science company Sigma-Aldrich € 7.5 million for providing incorrect or misleading information during the Commission’s 2015 review of Merck’s acquisition of the company. The fine marks another step in an increasingly stringent approach to enforcing the procedural rules that apply during the Commission’s merger control process.[1]
The ICA Fines Google €102 Million for an Alleged Refusal To Publish Enel X’s App for Electric Vehicle Charging on Android Auto
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]
The Commission Fines Three Railway Companies for Their Participation in a Customer Allocation Cartels
On April 20, 2021, the Commission fined Österreichische Bundesbahnen (“ÖBB”), Deutsche Bahn (“DB”) and Société Nationale des Chemins de fer belges/Nationale Maatschappij der Belgische Spoorwegen (“SNCB”) for their participation in a customer allocation cartel in the market for cross-border rail cargo transport services on blocktrains. The fine imposed amounts to a total of approximately €48 million and includes reductions following the leniency application of all three companies and their settlement with the Commission.[1]
Joint Statement by the CMA, ACCC and Bundeskartellamt on the Need for Rigorous Merger Enforcement
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.
First Article 22 EUMR ‘Below Threshold’ Upward Referral After Commission’s Recent Policy Change
On April 19, 2021, the Commission accepted a referral request by the French competition authority of genomic sequencing company Illumina’s planned acquisition of biotech company Grail under Article 22 EUMR.[1] This marks the first effective upward referral of a ‘below threshold’ transaction, i.e., a transaction that neither meets national nor EU merger control thresholds.[2]
Commission Sends Apple a Statement of Objections Alleging Apple Abused Its Dominant Position to Advantage Its Music Streaming Service
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]