On April 24, 2020, the Commission announced that it is seeking to design and implement specific ex ante[1] and remedy tools[2] for digital markets. This follows earlier efforts related to the creation of a single data market and the proposed European approach towards artificial intelligence unveiled in February 2020.[3]
Mylan’s Tie-up With Pfizer’s Upjohn Division Approved Subject to Remedies
On April 22, 2020, the Commission conditionally approved the joint venture between Mylan and Upjohn, Pfizer’s off-patent branded and generic medicines division, following a Phase I review.[1] The transaction follows a recent stream of large pharma and healthcare transactions approved by the Commission, including the unconditional clearance of Bristol-Myers Squibb’s acquisition of Celgene,[2] and conditional clearances of AbbVie’s acquisition of Allergan,[3] and GSK’s acquisition of Pfizer’s Consumer Health Business.[4]
FCJ Confirms That German Model T&Cs for Online Banking Were Anticompetitive
On April 7, 2020, the FCJ confirmed a FCO decision finding some of the German Banking Industry Committee’s (Deutsche Kreditwirtschaft, “GBIC”) model T&Cs for online banking to be anticompetitive.[1]
The Commission Tests 1997 Market Definition Notice’s “Fit-for-Purpose”
On April 3, 2020, the Commission launched a public consultation to review the adequacy of the 1997 Market Definition Notice (the “Notice”), which sets out the Commission’s formal guidance on the definition of relevant product and geographic market.[1] This kicks off a six-week process to solicit opinions from anyone interested.
Budapest Bank: Banking on the Importance of the By-effect Assessment
On April 2, 2020, the Court of Justice of the European Union (the “CJEU”) ruled on a 2018 preliminary reference from Hungary’s Supreme Court, vacating on appeal the decision of the Hungarian competition authority. The authority found that an agreement on multilateral interchange fees (“MIFs”) constituted a by-object and by-effect infringement of Article 101 TFEU.[1] The judgment concerns two heavily discussed topics: the notion of restriction of competition by object vs effect,[2] and MIFs.[3]
Ongoing Investigations in Digital Markets
In addition, the Commission continues to actively scrutinize digital platforms, despite the challenges stemming from the COVID-19 pandemic. Three recent developments are noteworthy.
DG COMP Responds To The COVID-19 Outbreak (April 2020)
The COVID-19 pandemic has caused significant economic disruption, including supply shortages, cost increases, and liquidity constraints resulting from a prolonged shutdown. As EU Member States and businesses respond to these challenges, their actions continue to raise potential issues under EU competition law.
CAT Confirms High Threshold for Review of CMA Merger Decisions
CMA merger decisions are subject to judicial review by the Competition Appeal Tribunal (CAT). Challenges to the CMA’s substantive decision-making have, however, generally been unsuccessful. Although the CAT has been willing to intervene on matters of procedural fairness and errors of law, as recent decisions confirm, the CAT is reluctant to intervene in the CMA’s assessment of competitive effects and identification of remedies.
The European Commission Authorizes an Amendment to the French Recovery Plan
The Court of Justice Confirms the Commission’s Broad Margin of Appraisal in Rejecting Complaints
On March 12, 2020, the General Court confirmed the Commission’s decision to reject a complaint brought by LL-Carpenter (“Carpenter”), a Czech distributor of motor vehicles, against Subaru for alleged anti-competitive conduct. The judgment serves as a reminder of the Commission’s wide discretion to evaluate and reject complaints.