Cartels

On March 30, 2022, after a decade of litigation in over a dozen separate cases, the General Court partially annulled the Commission’s March 17, 2017 decision imposing a €776 million fine on air carriers for coordinated practices and agreements relating to air freight transport between 1999 and 2006.[1] The General Court upheld the Commission’s decision although, in six of 13 appeals lodged against the decision,[2] the Court found that the Commission had infringed procedural rights and/or failed to establish the participation of certain air carriers in certain parts of the infringement. The General Court reduced the corresponding fines and dismissed the remaining seven appeals in their entirety.

In a series of non-final judgments, published between February 15 and 25, 2022 (the “Judgments”),[1] the Council of State upheld the appeals for revocation filed by Medicair Italia S.r.l., Medigas S.r.l., Linde Medicale S.r.l., Sapio Life S.r.l. and Vivisol S.r.l. (the “Parties”), as it found a number of material errors in certain previous judgments of the same court.[2]

On February 2, 2022, the General Court dismissed Scania’s trucks cartel appeal and essentially endorsed the Commission’s hybrid cartel procedure that bifurcates the Commission’s investigation into a settlement path with willing parties and an adversarial path with any hold outs.[1] The General Court was satisfied that the Commission examined all the facts and arguments that Scania (a non-settling party) brought before it afresh, and in particular, without relying on the facts or conclusions reached during the settlement procedure, which ensured a fair and impartial adversarial procedure.

On January 18, 2022, the German Federal Cartel Office published a press release of its review of two sustainability initiatives. Only a week later, on January 25, 2022, the FCO provided further guidance for the implementation of sustainability initiatives under competition law: It concluded that a proposed agreement in the milk sector to introduce surcharges for the benefit of milk producers was anticompetitive.

On December 22, 2021, the German Federal Cartel Office (“FCO”) published its annual review for 2021.[1]  As done already on the occasion of the presentation of its Annual Report 2020/2021,[2] the FCO’s President, Andreas Mundt, emphasized again that the protection of competition in the digital economy remains one of the FCO’s top priorities.  He underlined that also merger control will continue to serve as a key tool to achieve this goal.  In addition, he pointed out that the FCO would welcome powers of intervention also with regard to infringements of consumer rights.

Cleary Gottlieb partners Romano Subiotto QC and Robbert Snelders, in collaboration with our Antitrust practice, are thrilled to present