FCO Finds That Microsoft’s Hiring of Key Inflection Employees and Licensing of Inflection Technology Constitutes a Reportable Concentration, but Declines Jurisdiction Due to Lack of Sufficient Local Nexus
On November 29, 2024, the German Federal Cartel Office (“FCO”) concluded that Microsoft’s hiring of nearly all of Inflection AI, Inc.’s (“Inflection”) employees together with agreements on financing and the use of Inflection’s intellectual property amounted to a “concentration” under German merger control law. However, due to the lack of “substantial domestic operations” at the time of the acquisition, the FCO declined jurisdiction to review the case.[1]
Learnings from Vodafone/Three
The UK Competition and Markets Authority (CMA) has cleared the Vodafone/Three[1]merger subject to behavioural remedies. The transaction will bring together two of the four largest UK mobile network operators and potentially transform the UK telecoms landscape. The CMA’s approval decision comes against the backdrop of widespread scepticism of consolidation in the mobile telecommunications sector across Europe. It also departs from the CMA’s previous policy of seeking structural remedies to address competition issues and blocking problematic deals where no structural remedy could be found.
KIA Auto: Court of Justice Eases the Road for Establishing Anticompetitive Effects in Vertical Agreements
On December 5, 2024, the Court of Justice delivered a preliminary ruling in a case involving KIA Auto and its parent company Tallinna Kaubamaja Grupp on the required standard of proof to demonstrate restrictions by effect under Article 101(1) TFEU.[1]
Paris Court of Appeals clarifies the scope of its referral of the TDF/Itas merger back to the FCA
On December 5, 2024,[1] the Paris Court of Appeals (“Court of Appeals”) clarified the scope of its judgment of June 27, 2024, referring back the assessment of TDF’s acquisition of Itas to the French Competition Authority (“FCA”).[2] The Court ruled that the referral was limited to further investigation, while the final decision would be taken by the Court of Appeals (not the FCA).
The French Competition Authority Imposes a €14 Million Fine in the Inter-Island Air Transport Sector
On December 4, 2024, the French Competition Authority (the “FCA”) sanctioned two airlines, Air Antilles and Air Caraïbes, and one specialised consultant for having implemented a strategy to increase prices and coordinate offers and conditions in the Caribbean inter-island aviation transport sector (the “Decision”).[1] The FCA imposed total fines of €14.57 million, concluding a five-year old investigation.[2]
Antitrust Review Episode 35: Looking Back at Commissioner Vestager and Forward to Commissioner Ribera
In the latest instalment of our Antitrust Review podcast, host Nick Levy is joined by colleagues from Cleary Gottlieb’s Brussels
“Killer Acquisitions” Study in Pharma Calls For Stricter Scrutiny
On November 28, 2024, the Commission published the results of an extensive ex-post study examining its past enforcement of merger control rules in the pharmaceutical sector (the “Study”).[1]
The FCA Conditionally Clears Intermarché’s Acquisition of 200 Casino Stores After Having Granted a Derogation From The Suspensive Effect of Merger Control
On November 28, 2024, the French Competition Authority (“FCA”) conditionally cleared the acquisition of 200 former Casino stores by the Intermarché group.[1] The FCA decision is conditional on the divestment of 11 stores to ensure that consumers have access to alternative offerings when purchasing mass-market products.
DOJ Antitrust Creates Guidance for Evaluating Antitrust Compliance Programs
On November 14, 2024, the U.S. Department of Justice (“DOJ”) Antitrust Division (the “Division”) released guidance for the Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations (the “Guidance”). The Guidance will be used by the Division in assessing the adequacy and effectiveness of a company’s antitrust compliance program when making a charging or resolution decision.[1]