On January 28, 2021, the Court of Justice upheld the General Court’s ruling that the Commission’s request for information (“RFI”) issued during its predatory pricing investigation of Qualcomm was necessary and proportionate.[1] The judgment further strengthens antitrust authorities’ broad discretion in deciding on the scope of RFIs.
Topics
A New Theory of Harm and an Unprecedented Enforcement Action: The Commission Flexes Its Muscles in Novelis/Aleris
On January 27, 2021, the Commission published its decision to conditionally approve Novelis’ acquisition of Aleris, two suppliers of flat-rolled aluminum sheets.[1]
The Commission pushed the boundaries of its own powers in merger control proceedings, both in terms of substance and procedure. With respect to substance, the Commission introduced in its decision a new theory of harm for the competitive analysis of transactions, particularly with respect to markets affected by significant capacity constraints. From a procedural standpoint, the Commission adopted far-reaching measures to enforce the commitments that had been offered– and eventually infringed–by the parties to the transaction.
The French Competition Authority Publishes a Study on Professional Associations
In connection with the forthcoming transposition of Directive No. 2019/1 (the “ECN+ Directive”), which exposes professional associations to higher fines for anti-competitive practices, the French Competition Authority (“FCA”) has published a study on how competition law applies to professional associations and made a number of practical recommendations.[1]
The Court of Justice Expands the Rebuttable Presumption of Decisive Influence in Cartels Cases
On January 27, 2021,[1] the Court of Justice confirmed a 2018 General Court judgment,[2] upholding a 2014 Commission decision which found Goldman Sachs jointly and severally liable, together with its former subsidiary Prysmian, for Prysmian’s participation in a cartel. The judgment strengthens the parental liability doctrine with potential implications for financial investors.
CMA v Flynn Pharma Ltd and Pfizer Inc.
On 27 January 2021, the Supreme Court announced that, on 17 December 2020, it granted Flynn Pharma and Pfizer permission to appeal against a May 2020 judgment of the Court of Appeal. The Court of Appeal had allowed an appeal by the CMA against a costs ruling made by the CAT.
Cooperation To Achieve Sustainability Goals – CMA Publishes Guidance
On 27 January, the CMA published guidance for businesses on the application of UK competition law to co-operative agreements aimed at achieving environmental or sustainability objectives (the Guidance). The role of competition law in supporting environmental initiatives has seen greater focus as the UK government pursues its 2050 net zero target and the European Union seeks to become the first climate-neutral continent by 2050 (discussed here). The Guidance explains the application of existing block exemptions and guidance for firms assessing whether agreements with sustainability objectives risk infringing competition law, and is part of a wider programme of activities that the CMA is carrying out to support sustainability objectives.
Kerilee Investments Limited v International Tin Association Limited
On 26 January 2021, the CAT published notice of a claim for damages by Kerilee Investments Limited (Kerilee) against the International Tin Association Ltd (ITA). Kerilee is a metal trading SME, incorporated in the UK. The ITA is a UK-based and incorporated trade association and special purpose entity incorporated by guarantee in the UK. The ITA is responsible for the governance, policy, financial, executive and secretariat functions of the International Tin Supply Chain Initiative (ITSCI) conflict mineral due-diligence programme.
Justin Le Patourel v BT Group PLC
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).
FNZ (Australia) Bidco Pty Ltd v Competition And Markets Authority
On 25 January 2021, the CAT published an order remitting the assessment of the completed acquisition of GBST Holdings Limited…
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]