On 26 January 2021, the CAT published an application to commence a collective proceedings order against BT for charging excessive prices to customers supplied with certain residential landline services. The claim arises from a review of the market for standalone landline telephone services conducted by Ofcom in 2017. Ofcom found that BT charged prices above the competitive level to customers who bought standalone residential landline telephone services (voice only customers).
One-size-Fits-all: The Ethylene Decision Confirms the Commission’s Practice to Apply a 10% Fine Uplift to Purchaser Cartels
On January 22, 2021, the Commission published the non-confidential version of its July 2020 settlement decision, fining three purchasers of ethylene[1] a total of €260 million for infringing Article 101 TFEU.[2] The case is only the second purchaser cartel sanctioned by the Commission under the 2006 Fining Guidelines, after its Car battery recycling decision.[3]
Game Over: Valve and PC Video Game Publishers Fined for “Geo-blocking” Practices
On January 20, 2021, the Commission imposed fines totaling €7.8 million on Valve, the owner of the video gaming platform Steam, and five PC video game publishers[1] for breaching Article 101 TFEU. The Commission found that the companies prevented gamers from activating certain PC video games purchased from sellers in eight Central and Eastern European Member States, where prices are generally lower than in other Member States (so-called “geo-blocking”).[2] This decision is a reminder of the Commission’s strict stance on cross-border sales restrictions.
FCO Safeguards Competition in Mobile Communication Cooperation
On January 19, 2021, the FCO announced that it would closely monitor cooperation agreements between Deutsche Telekom, Vodafone, and Telefónica
The Court of Justice: Bid-rigging Cartels End With the Signing of the Tender Contract
On January 14, 2021, the Court of Justice held that a bid-rigging infringement[1] ends when the essential characteristics of the tender contract, in particular the amount to be paid for the works that are the subject of the tender contract, have been definitively agreed.[2] This is the moment when the successful bidder and the contracting authority conclude the tender contract, regardless of whether the payment instalments are made, or the works are completed, after this date.
FP McCann Limited v Competition and Markets Authority
On 13 January 2021, the CAT published an order confirming FP McCann Limited (FPM) had infringed the Chapter 1 Prohibition by engaging in a price-fixing and market sharing cartel. As a result, the first condition required for a competition directors disqualification order (CDO) against two of FPM’s directors, Eoin McCann and Francis McCann, was satisfied.
FP Mccann Limited v Competition and Markets Authority and (1) Eoin McCann Francis McCann
On 22 December 2020, the CAT dismissed FP McCann Limited’s (FPM) appeal against the penalty imposed on FPM by the CMA for participating in an illegal cartel relating to precast concrete drainage products (see UK Competition Newsletter, October 2019).
The General Court Rules on Circumstances in Which Sports Organizations May Restrict Participation in Third-party Events
On December 16, 2020, the General Court partially annulled the Commission’s decision in the International Skating Union’s Eligibility rules case.[1] The General Court upheld the Commission’s finding that the International Skating Union’s (“ISU”) eligibility rules (“Eligibility Rules”), which prescribed severe penalties on participants of third-party events not authorized by the ISU, were in breach of Article 101 TFEU.
Mastercard Incorporated and Others (Appellants) V Walter Hugh Merricks CBE (Respondent)
On 11 December 2020, the UK Supreme Court handed down its judgment concerning the standard to be applied when certifying collective proceedings before the Competition Appeal Tribunal (CAT) for breaches of the Competition Act 1998 (the Act). Under the Act, collective proceedings may not be pursued beyond the issue and service of a claim form without the CAT’s certification, in the form of a Collective Proceedings Order (CPO).
The French Competition Authority Rejected Travel Agencies’ Complaint Against Several Airlines for Failing to Refund Cancelled Flights Amidst COVID-19 Crisis
On December 8, 2020, the FCA dismissed a complaint by French travel cooperative CEDIV on behalf of 55 member travel agencies against several airlines which denied travellers refunds for their flights, cancelled due to the COVID-19 pandemic (the “Decision”).[1]