On February 6, 2019—the same day the Siemens/Alstom decision was adopted—and again following a Phase II investigation, the Commission prohibited German rolled copper products manufacturer Wieland’s proposed acquisition of Aurubis’s rival business and of its 50% stake in the parties’ pre-rolled strip manufacturing joint-venture Schwermetall.[1]
Prohibition of Siemens/Alstom Triggers Debate About Far-reaching Changes to EU Merger Control
On February 6, 2019, the Commission[1] prohibited the then-proposed combination of Siemens AG’s (“Siemens”) mobility business and Alstom S.A. (“Alstom”) which put an end to the parties’ ambition of creating a European Champion in the rail industry.[2] The Financial Times called this Phase 2 investigation “one of the most important test cases for the commission since it assumed powers to vet EU mergers in 1989.”[3]
The ICA Fines Four Operators and a Facilitator for Collusive Behavior in the Waste Collection Sector
On January 30, 2019, the ICA found that four companies rigged a public tender for regional waste collection and disposal.[1] According to the ICA, the collusion was facilitated by the intervention of a third-party consulting firm, which encouraged and coordinated the parties’ collusive behavior. In line with EU precedent, the ICA imposed a fine also on the facilitator.[2]
Advocate General Wahl Provides Guidance on “Unforseeable Circumstances or Force Majeure” in RF v. Commission
On January 24, 2019, Advocate General Wahl issued an opinion in a Polish company’s (“RF”) appeal before the Court of Justice and provided guidance on “unforeseeable circumstances or force majeure” in the context of a failure to comply with the time limit for lodging an application before the General Court.[1]
The Commission Fines MasterCard €570 Million for Hindering Merchants’ Access to Better Conditions Offered by Banks Elsewhere in the EU
As reported in our December 2018 newsletter, the Commission fined MasterCard over €570 million for limiting merchants from benefitting from better conditions offered by banks established elsewhere in the EU.[1]
Commissioner Vestager Reiterates Concerns Over Online Platforms and Announces “More Cases to Come”, as Welll as Plans To Hire Experts and Buy Software for Speedier Assessment of Cases in the Digital Sector
During a speech delivered at the Paris Institute of Political Studies (Sciences Po) on January 21, 2019, Commissioner Vestager indicated that more cases concerning online platforms are to be expected.
Commission Conditionally Approves Basf/Solvay Creating a “Significant European Player” in the Nylon Compound Market
On March 6, 2020, the Commission approved Telecom Italia and Vodafone’s acquisition of joint control over INWIT, which will combine the companies’ 22,000 telecommunication towers in Italy.[1] The approval was obtained during Phase I and is conditioned on third-party access to the infrastructure.
Advocate General Kokott Issues an Opinion on the Scope of Application of the Private Damages Directive
The Court of Justice Strengthens Rights of Defense of Companies in Commission v. UPS
Background
In 2013, the European Commission (“the Commission”) prohibited the proposed acquisition of TNT by United Parcel Service (“UPS”) on the basis that the merger could lead to a significant impediment of effective competition for intra- EEA express small package delivery services and result in increased prices. UPS offered a package of remedies, including divestment of TNT’s subsidiaries in the 15 Member States where the Commission identified competition concerns.
Commission Continues to Target Aggressive Tax Arrangements for Multinationals
The Commission continues its policy of targeting aggressive tax arrangements for multinationals (Apple[1]—Irish tax benefits case; Engie[2] and McDonald’s[3]—Luxembourg tax benefits cases) as can be seen from the opening of a state aid investigation into a tax ruling granted by the Netherlands to Nike.