On December 16, 2020, the General Court partially annulled the Commission’s decision in the International Skating Union’s Eligibility rules case.[1] The General Court upheld the Commission’s finding that the International Skating Union’s (“ISU”) eligibility rules (“Eligibility Rules”), which prescribed severe penalties on participants of third-party events not authorized by the ISU, were in breach of Article 101 TFEU.
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Digital Markets: The Commission Publishes Draft Online Platforms Regulations
On December 15, 2020, the Commission published its proposal for the Digital Markets Act (“DMA”),[1] which would impose a list of ex ante obligations on designated large online platforms that meet certain thresholds. The proposed DMA aims at preventing practices by large online platforms that, according to the Commission, either fall outside or cannot be effectively addressed by the existing EU competition rules. The DMA would represent a far-reaching expansion of the Commission’s regulatory powers in digital markets, and would significantly increase the regulatory burden on the designated companies.
The Commission Publishes Report on the Implementation of the Damages Directive
Mastercard Incorporated and Others (Appellants) V Walter Hugh Merricks CBE (Respondent)
On 11 December 2020, the UK Supreme Court handed down its judgment concerning the standard to be applied when certifying collective proceedings before the Competition Appeal Tribunal (CAT) for breaches of the Competition Act 1998 (the Act). Under the Act, collective proceedings may not be pursued beyond the issue and service of a claim form without the CAT’s certification, in the form of a Collective Proceedings Order (CPO).
FCO Opens Additional Investigation of Facebook Practices
On December 10, 2020, the FCO initiated an investigation against Facebook for requiring users of its Oculus virtual reality glasses to also have a Facebook account.[1]
The Court of Justice Annuls Commission Decision That Accepted Paramount Commitments on Cross-border Pay-TV Restrictions
On December 9, 2020, the Court of Justice annulled the Commission’s decision that accepted Paramount’s commitments to remove from its licensing agreements with broadcasters any obligation that prevents broadcasters from responding to cross-border requests for pay-TV subscriptions (the “Commitments Decision”).[1] The Court of Justice concluded that the Commitments Decision breached the principle of proportionality because it negated contractual rights of Canal+ and other counterparties to Paramount’s licensing agreements who were not involved in the Commission’s proceedings.
FCJ Provides Guidance on Competition Infringements in The Railway Sector
On December 8, 2020, the FCJ overturned a decision of the DCA concerning an increase in cancellation fees for track access charges imposed by Deutsche Bahn AG (“DB”) between 2008 and 2011. The plaintiff demanded the repayment of a partial amount of the cancellation fees paid following a price increase of 150%. The FCJ referred the case back to the DCA.[1]
CMA’s Digital Markets Taskforce Proposes a New Regulatory Regime for Digital Markets
On 15 October 2020, the Competition and Markets Authority (CMA) revoked a £300,000 penalty it had imposed on JD Sports Fashion plc for breach of an interim enforcement order (IEO) issued in connection with JD Sports’ completed acquisition of Footasylum plc. The penalty was withdrawn “[i]n light of issues raised on appeal.” This is the first time that a CMA procedural fine has been revoked or overturned on appeal. On 19 and 20 October 2020, the Competition Appeal Tribunal (CAT) heard Facebook’s appeal against the CMA’s refusal to grant a derogation from an IEO issued in connection with Facebook’s completed acquisition of GIPHY, Inc. This article considers potential implications of these cases for future UK mergers.
The French Competition Authority Rejected Travel Agencies’ Complaint Against Several Airlines for Failing to Refund Cancelled Flights Amidst COVID-19 Crisis
On December 8, 2020, the FCA dismissed a complaint by French travel cooperative CEDIV on behalf of 55 member travel agencies against several airlines which denied travellers refunds for their flights, cancelled due to the COVID-19 pandemic (the “Decision”).[1]
The Paris Court of Appeals Ruled That the Decision of Some of the Parties to an Antitrust Investigation Not To Contest the FCA’s Objections Does Not Prevent Other Companies From Challenging the Objections
On December 3, 2020,[1] the Paris Court of Appeals ruled in the Brenntag case that a company challenging its participation in a cartel cannot be held liable simply because other companies did not contest the alleged objections from the FCA. This judgment, issued in the context of a cartel case in the chemical distribution sector, constitutes a turnaround in the case law, although the Court of Appeals, ruling on the merits of the case, ultimately confirmed the fines imposed by the FCA.