The Competition Appeal Tribunal (CAT) and Court of Appeal have upheld decisions of the Competition and Markets Authority (CMA) in two significant merger cases. These judgments endorse both the CMA’s assertive approach to establishing jurisdiction over transactions with limited UK nexus and its policy of imposing global hold separate orders over both parties in completed mergers, and underline the broad discretion that the courts will allow the CMA in deciding how to carry out merger investigations.
Update on the Commission’s Anti-cartels Enforcement
On May 20, 2021, the Commission issued a decision fining several banks for participation in an alleged cartel in European government bonds (“EGB”) trading.[1] The Commission decision found that seven investment banks (Bank of America, Natixis, Nomura, UBS, UniCredit, RBS, and WestLB (now called Portigon)) participated in an alleged collusive scheme aimed at distorting competition in purchasing and trading EGBs.[2] EGBs are financial instruments issued on the primary market for the purposes of raising debt capital by the governments of the Eurozone Member States. Once bought by “primary dealers” in primary market auctions, EGBs are traded on the secondary market among investors and financial institutions.
The European Commission Proposes a Far-Reaching Regulation to Tackle Foreign Subsidies
On May 5, 2021, the European Commission proposed a new draft regulation that, if adopted, would introduce sweeping measures aimed at controlling the impact of foreign subsidies on the EU single market. The Proposed Regulation reflects the EU’s policy priority to pursue an “open strategic autonomy” and fits into the EU Industrial Strategy, updated on the same date.
FCJ Confirms Narrow MFN Clauses as Anticompetitive
On May 18, 2021, the FCJ annulled a 2019 decision of the Düsseldorf Court of Appeal (“DCA”) and found the “narrow” most favored nation (“MFN”) clauses used by the hotel booking platform operator Booking Holdings (“Booking.com”) to be incompatible with EU and German competition law.[1]
The Council of State Confirms a TAR Lazio Judgment That Upheld an ICA Decision Concerning a Cartels in the Helicopter Transport Services
On May 6, 2021, the Council of State rejected the appeals lodged by Elifriulia S.r.l and Star Work Sky S.a.s. (the “Parties”)[1] against the TAR Lazio judgment[2] that upheld the 2019 ICA decision fining the Parties approximately €67 million for restrictive agreements concerning certain helicopter transport services.[3]
The TAR Lazio Fully Upholds an ICA Decision That Fined a Legal Monopolist in the Local Public Passenger Transport for Refusal to Supply Essential Information
On May 17, 2021, the Regional Administrative Tribunal of Lazio (“TAR Lazio”) rejected the application for annulment lodged by SAD – Trasporto Locale S.p.A. (“SAD”), a company entrusted by the Autonomous Province of Bolzano (“APB”) with the provision of road passenger transport services in the Bolzano area,[1] against the 2019 decision by which the Italian Competition Authority (“ICA”) fined SAD for abuse of dominance under Article 102 TFEU.[2]
Facebook Inc. v Competition and Markets Authority
On 13 May 2021, the Court of Appeal dismissed an appeal by Facebook, Inc and Facebook UK Limited against a
The Paris Court of Appeals Rejects Roche’s Challenge Against the French Competition Authority Communication Campaign Following Its Decision To Impose a Fine on Roche, Novartis and Genentech for Abuse of Collective Dominance in the Market of AMDTreatment
In an order dated May 12, 2021, the Paris Court of Appeals ruled that it did not have jurisdiction to rule on Roche’s request for injunctive relief against the French Competition Authority (“FCA”), who had shared videos related to the case on social media and sent a letter to a pharmaceutical trade association in the aftermath of the publication of its prohibition decision.[1].
The General Court Rules on Two Commission State Aid “Tax Ruling” Decisions: Annuls in Amazon, Upholds in Engie
On May 12, 2021, the General Court handed down two judgments on the Commission’s review under EU State aid rules of tax rulings in which the Luxembourg tax authorities had clarified in advance how national taxation provisions will apply to specific companies.