On Janaury 30, 2020, the European Court of Justice (the “ECJ”) issued a potentially far-reaching preliminary ruling in response to a May 2018 preliminary reference made by the U.K. Competition Appeals Tribunal (the “CAT”).[1]
NBC Universal Completes the Commission’s Investigations Against Vertical Restraints in the Merchandising Sector
On January 30, 2020, the Commission fined NBCUniversal and other companies belonging to the Comcast Corporation €14.3 million for breaching Article 101 TFEU by imposing territorial restrictions on cross-border and online sales of movie merchandising products within the EEA.[1] The Commission granted NBCUniversal a 30% fine reduction on account of its cooperation.
The Commission Reviews a Decision To Cut Jobs in a Divested Compressor Plant Following the Nidec/ Embraco Phase II Merger Approval
On January 6, 2020, the Commission announced that it would investigate job losses in a plant in Fürstenfeld, Austria, following the acquisition of Whirlpool’s refrigeration compressor business, Embraco, by Nidec, a Japanese manufacturer of electric motors, powertrains, and other related industrial components. The Commission had conditionally approved the transaction following an in-depth merger control investigation, allowing the creation of a leading player in the refrigeration sector.[1]
Commission Conditionally Clears Battery Maker Varta’s Acquisition of Energizer’s Divestment Business Subject To Behavioral Remedies To Address Input Foreclosure Concerns
On December 3, 2019, the Commission approved German battery maker Varta AG (“Varta AG”) as a suitable purchaser of assets divested by US-based rival Energizer in its acquisition of U.S. consumer products company Spectrum Brands’ batteries and portable lighting business.[1] In a separate decision on the same day, the Commission also cleared Varta AG’s acquisition of the divested Varta-branded assets subject to behavioral remedies.[2]
The European Commission Receives Feedback From National Competition Authorities on Its Review of the VBER
On December 13, 2019 the Commission published an anonymized summary of the contributions submitted by NCAs during the Commission’s ongoing evaluation of the Vertical Block Exemption Regulation (“VBER”) and the accompanying Guidelines on Vertical Restraints (“Guidelines”), which will lapse in 2022.[1] The Commission received 20 contributions from NCAs across the EEA.[2]
Otis: The Court of Justice Clarifies That Compensation for Loss Caused by a Cartels Is Not Limited to Market Participants
On December 12, 2019, the ECJ clarified in a preliminary ruling that entities which are not active as customers or suppliers in the markets affected by a cartel are entitled to claim damages under Article 101 TFEU.[1]
The Commission Publishes Its Decision To Waive Commitments in the Steel Sector
On December 3, 2019, the Commission published its decision granting steel company Evraz Group S.A.’s (“Evraz”) request for a partial waiver of commitments it submitted as part of its acquisition of Highveld Steel and Vanadium Corporation Limited (“Highveld”). The Commission cleared the transaction in 2007, subject to divestment and behavioral commitments to address its concerns regarding anticompetitive effects in the markets for the supply of high-purity vanadium pentoxide and vanadium chemicals. The commitments also addressed concerns regarding a potential foreclosure of downstream competitors on the markets for vanadium oxides and finished vanadium products.
The Court Of Justice Partially Upheld ABB’s Claim That The General Court Had Exercised A Wrong Evidentiary Standard
On November 28, 2019, the Court of Justice partially granted the appeal brought by ABB and annulled a part of the Commission’s Power Cables decision.[1] In particular, the Court of Justice upheld ABB’s argument that the Commission did not adduce sufficient evidence that the cartel extended to accessories for power cables with voltages between 110 kV and 220 kV. The Court of Justice criticized the General Court for using a wrong evidentiary standard in reviewing the Commission’s decision.
The Paris Court of Appeals Orders Renault Trucks To Disclose the Commission’s Statement of Objections and Its Annexes in a Follow-on Damages Action
On October 25, 2019, the Paris Court of Appeals ordered Renault Trucks to disclose the Commission’s statement of objections (“SO”) and its annexes in a follow-on damages action arising from the Trucks cartel.
The Court Of Justice Rejected Silec’s Argument That It Had Distanced Itself From The Cartels
On November 14, 2019, the Court of Justice dismissed an appeal brought by Silec Cable.[1] In particular, the Court rejected Silec’s claims that the General Court had (i) incorrectly interpreted the content of its email communications as evidencing its involvement in the cartel; (ii) erroneously applied the legal test of public distancing from the cartel (i.e., Silec was not required to distance itself as it did not participate in any meetings); and (iii) wrongly denied them a ‘fringe player’ status, compared to another cartel participant, refusing to grant a fine reduction on this basis.