On July 2, 2019, after an in-depth investigation, the FCO approved the acquisition of German paper dealer Papyrus Deutschland GmbH & Co. KG (“Papyrus”) by its competitor Papier Union GmbH despite high combined market shares in the market for printing paper.[1]
FCO Approves EDEKA’s Acquisition of Handelshof Group
On July 1, 2019, the FCO cleared EDEKA Zentrale AG & Co. KG’s (“EDEKA”) 100% acquisition of the Handelshof Management GmbH (“Handelshof group”).[1] The FCO found that the merger did not significantly impede effective competition in the food (and related non-food) product wholesale and procurement markets.
The Commission Fines Canon €28 Million For Gun-Jumping
On June 27, 2019, the Commission imposed two fines totaling €28 million on Canon in the context of its acquisition of Toshiba Medical Systems Corporation (“TMSC”). The first fine of €14 million was levied for Canon’s failure to notify the Commission prior to the implementation of the transaction in violation of Article 4(1) of the EU Merger Regulation (“EUMR”). The second fine of €14 million, was imposed as a result of Canon implementing the transaction prior to obtaining clearance, breaching Article 7(1) EUMR.
The Commission Approves Harris’s Acquisition Of L3 Subject To Divestment Of Harris’s Night Vision Operations
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]
CMA Publishes Merger Remedy Evaluation
In June 2019, the CMA published its Merger Remedy Evaluations Report (the Report) – the latest in a series of case evaluations conducted to develop the CMA’s expertise, policy, and practice on merger remedies. The Report notes that its findings will be “used to inform the way in which the CMA approaches remedy design and implementation in subsequent cases.” The Report contains useful guidance for parties on the types of remedies that the CMA is prepared to accept or may require.
The Commission Prohibits Tata/Thyssenkrupp JV as the Parties Fail To Offer Suitable Remedies
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]
The Inspection Générale Des Finances and the Conseil Général de L’éConomie Publishes a Report on EU Competition Policy and Industrial Strategy
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.
The General Court Rejects KPN’s Challenge to Vodafone/Liberty Global Joint Venture
On May 23, 2019, the General Court rejected KPN’s attempt to annul the Commission’s conditional approval of Vodafone’s and Liberty Global’s joint venture in the Netherlands.[1]
The ICA Clears Sky Italia’s Acquisition of Mediaset Premium’s DTT Platform R2 Subject to Remedies
On May 20, 2019, the Italian Competition Authority (the “ICA”) issued a decision in the merger control proceedings opened in connection with Sky Italia S.r.l.’s (“SKY”) acquisition of control over R2 S.r.l. (the “Decision”).[1] Owned by Mediaset Premium S.p.A. (“MP”), R2 S.r.l. (“R2”) provides technical and administrative platform services for broadcasting by means of Digital Terrestrial Television (“DTT”).
The Commission and the Belgian Competition Authority Simulataneously Raid French and Belgian Grocery Retailers
On May 20, 2019, the Commission carried out dawn raids at the premises of two grocery retailers in France, Casino and Intermarché-Les Mousquetaires.[1] On the same day, the Belgian Competition Authority raided Carrefour and Provera, a joint purchasing venture of grocery retailers Cora, Match, and Louis Delhaize. Although the two series of dawn raids occurred simultaneously, the Commission’s press release leaves open whether the raids were coordinated.