European Union

On June 21, 2019, the Commission conditionally approved in Phase I the acquisition of L3 Technologies (“L3”) by Harris Corporation (“Harris”), both U.S. based aerospace and defence companies. The approval was subject to the divestment of Harris’s night vision devices business.[1]

On June 19, 2019, the Court of Justice dismissed an appeal against a General Court order rejecting an appeal filed by RF, a Polish transportation company based in Gdynia, a city on the Baltic sea coast.[1] The General Court had rejected RF’s appeal because the original, signed version reached the General Court’s premises after the deadline to file an appeal. The General Court concluded that RF’s failure to meet the deadline due to a postal delay did not amount to an unforeseeable event or force majeure, which would have allowed for its acceptance, notwithstanding its late arrival in Luxembourg.

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 11, 2019, the Commission prohibited the then-proposed joint venture between Tata Steel and Thyssenkrupp as the parties failed to provide commitments that fully addressed the Commission’s concerns.[1] In Thyssenkrupp’s view, offering commitments would have “adversely affected the intended synergies of the merger to such extent that the economic logic of the joint venture would no longer be valid.”[2]

On June 11, 2019, Nustay, a Danish online booking agency, filed a complaint with the Commission against Expedia and Booking.com, alleging a breach of Articles 101 and 102 TFEU. The complaint centers on parity clauses in online hotel booking. In 2015, both Expedia and Booking.com agreed with the Danish Competition Authority to remove wide price-parity clauses from their contracts with hotels.[1] Nustay alleges that these two companies have de facto re-introduced these clauses through certain commercial practices.

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.