On October 30, 2020, the Commission sent an SO to České dráhy, the Czech state-owned incumbent rail operator, for allegedly abusing its dominant position through predatory pricing.[1]
Presumption of Decisive Influence: Court of Justice Confirms in Pirelli That Parent Companies Will Pay the Price for Errant Subsidiaries
On October 28, 2020, the Court of Justice rejected an appeal by Pirelli & C. SpA (“Pirelli”) against a 2018 judgment of the EU General Court upholding a 2014 Commission decision which held the power cables manufacturer jointly and severally liable, with its former subsidiary Prysmian, for Prysmian’s participation in a bid-rigging cartel. Pirelli’s appeal focused on the concept of parental liability and the Commission’s obligation to explain its reasoning.
ICA Imposes €27 Million Fine on Corepla for Abusing Its Dominant Position in the Market for Management of Plastic Waste Recycling Services
On October 27, 2020, the ICA issued a decision (the “Decision”)[1] fining the Italian Consortium for the Collection, Recycling and Recovery of Plastic Packaging (“COREPLA”) € 27,400,477 for allegedly abusing its dominant position in the market for management of plastic waste recycling services.
Advocate General Pitruzzella Recommends the Court of Justice of the European Union Set Aside FC Barcelona’s State Aid Victory at the General Court (European Commission v. FC Barcelona)
On October 15, 2020, Advocate General Pitruzzella advised the Court of Justice to overturn the General Court’s annulment of the Commission’s decision that had found that preferential corporate tax rates enjoyed by FC Barcelona and other clubs amounted to unlawful and incompatible State aid.[1] The Advocate General disagrees with the General Court’s conclusion that the Commission failed to show to the requisite legal standard the existence of an advantage in favor of FC Barcelona and proposes to set aside the judgment under appeal on this basis.
Advocate General Hogan Recommends Second Fine Reduction for Breach of Rights of Defense in Steel Abrasives Hybrid Cartels Case
On October 8, 2020, Advocate General Hogan delivered his opinion to the Court of Justice in which he argued the General Court had breached the principle of equal treatment in recalculating the fine imposed in 2014 by the Commission on Italian steel abrasives producer Pometon SpA (“Pometon”). Pometon was fined for participating in an alleged cartel by engaging in price coordination.[1] The Advocate General recommended that the Court of Justice should reduce the fine from €3.9 to €2.6 million.
Commission Accepts Broadcom’s Commitments for TV Set-top Boxes and Modem Chips
On October 7, 2020 the Commission accepted commitments offered by Broadcom to address concerns relating to the sale of chipsets used in TV set-top boxes (“STBs”) and in internet modems.[1] This marks the end of a case that unusually combined the use of interim measures and the commitments procedure.[2] The Commission may view this case as a blueprint to achieving expedited resolutions of antitrust investigations in technology markets and beyond.
The General Court Partially Annuls European Commission Decisions Ordering French Supermarkets Dawn Raids
On October 5, 2020, the General Court partially annulled three European Commission decisions ordering French supermarket groups Casino and Intermarché to submit to unannounced inspections.1[1]The General Court found that the Commission did not have sufficiently strong evidence to suspect one of the alleged infringements and had therefore breached the dawn raided companies’ right to the inviolability of the home.
HeidelbergCement & Schwenk Zement v. Commission: The General Court Provides Jurisdictional Clarity Where a Joint Venture Acts as the Acquirer
On October 5, 2020, the General Court dismissed an action for annulment by HeidelbergCement and Schwenk Zement (the “parent companies”) against the Commission’s April 2017 decision,[1] which prohibited their acquisition of Cemex’s Croatian and Hungarian subsidiaries through Duna-Dráva Cement (“DDC”), a full-function JV (“JV”) equally owned and controlled by the parent companies. [2]
General Court Clarifies the Role of Privacy Protections in Commission Investigations
October 2020 saw important developments with respect to the procedural framework surrounding the Commission’s evidence-gathering powers. A General Court judgment on the appropriateness of dawn raids at three French supermarket chains and the Court’s interim order regarding the Commission’s ongoing probe into Facebook’s data practices both have practical implications for companies under investigation.
The Court of Justice Rejects Prysmian’s Appeal in Line With Its Prior Judgments on the Power Cables Cartels
On September 24, 2020, the Court of Justice dismissed an appeal brought by the Italian cable producer Prysmian against a €104.6 million fine imposed by the Commission for its participation in the Power Cables cartel.[1]