Cartels

The Competition and Markets Authority (CMA) declared victory as the High Court confirmed the standard of evidence needed to secure warrants to search domestic premises.  The Competition Appeal Tribunal (CAT) had refused to grant a domestic search warrant to the CMA in connection with a cartel investigation.  It held in a judgment of October 2023 (the CAT Judgment) that a “higher order of scrutiny” [1] was required for domestic warrants than for business premises warrants, in order to protect individuals’ rights to a private and family life under Art. 8 of the European Convention on Human Rights (ECHR).

On March 7, 2024, the Paris Court of Appeal (the “Court”) partially overturned[1] a 2020 decision of the French Competition Authority (“FCA”)[2] sanctioning 12 companies for their participation in a cartel in the ham and cold meat sector (the “Decision”).  While the Court confirmed the existence of cartel-related practices, it dropped some charges and reduced the parameters taken into account by the FCA to calculate the fine.  As a result, the total fine amount was reduced from €93 million to €39 million.

In the latest instalment of the Cleary Gottlieb Antitrust Review podcast, host Nick Levy is joined by Saverio Valentino, Board member of the Italian Antitrust Authority. The conversation covers Saverio’s first year in the role, the agency’s current priorities, merger control and FDI regulation, cartel enforcement, rights of defence, judicial review, and much more.

In a 350-page decision dated  December 29, 2023, the French Competition Authority (“FCA”) sanctioned four professional associations and eleven undertakings, in their capacity as members of these associations, for having implemented a collective strategy to prevent market players from competing on the presence or absence of Bisphenol A (“BPA”) in food containers (the “Decision”). [1] The total fine amounts to €19,543,400.

On December 15, 2023, the French Competition Authority (“FCA”) published its Revised Leniency Guidelines, which repealed and replaced the 2015 guidelines.[1]  The Revised Leniency Guidelines were adopted as part of the implementation of the “DDADUE” law,[2] the ECN+ directive,[3] and the “Damages” directive.[4]  They aim to provide greater legal certainty for leniency applicants and modernize the leniency application procedure.

On December 7, 2023, the Commission imposed a fine of almost €48 million on Lantmännen ek för, the largest producer of ethanol in the Nordic region, for participating in a 1.5-year cartel manipulating the wholesale price of ethanol in the EEA.[1]

On October 19, 2023, the Commission imposed fines totalling €13.4 million on five pharmaceutical companies (Alkaloids of Australia, Alkaloids Corporation, Boehringer, Linnea, and Transo-Pharm) for their participation in a cartel in relation to an active pharmaceutical ingredient.[1]  This is the Commission’s first-ever cartel decision in the pharmaceutical sector, adding to the Commission’s extensive enforcement action against pharmaceutical companies.

On October 18, 2023, the French Cour de cassation upheld the Paris Court of Appeals’ ruling finding that the French Competition Authority (“FCA”) had rightly calculated the amount of the fine imposed on L’Oréal in 2014 for its alleged involvement in a cartel in the personal care products industry.[1] The French Cour de cassation confirmed that the sales of a subsidiary that did not itself participate in the infringement can be included in the calculation of the fine if these sales have been affected by the infringement sanctioned.