On February 21, 2020, the Commission fined hotel group Meliá €6.7 million for restricting cross-border sales through the terms of its hotel accommodation agreements with tour operators.[1] These terms allegedly forced tour operators to discriminate between EEA customers based on their country of residence. The Meliá decision is noteworthy for two reasons. It reiterates the Commission’s strict stance on any measures partitioning the EU Single Market, a theory of harm the Commission has applied frequently in recent years. It also continues the Commission’s now frequent practice of rewarding cooperation in non-cartel cases.
NBC Universal Completes the Commission’s Investigations Against Vertical Restraints in the Merchandising Sector
On January 30, 2020, the Commission fined NBCUniversal and other companies belonging to the Comcast Corporation €14.3 million for breaching Article 101 TFEU by imposing territorial restrictions on cross-border and online sales of movie merchandising products within the EEA.[1] The Commission granted NBCUniversal a 30% fine reduction on account of its cooperation.
The French Competition Authority Accepts Lego’s Revised Discount Commitments
On January 27, 2020, the French Competition Authority (“FCA”) accepted Lego’s commitments, thereby closing a five-year long investigation into the discount policy applied to distributors by the building games manufacturer.[1] Lego committed to redefine the criteria of its discount scheme to allow online distributors to obtain the same level of discount as brick-and-mortar distributors.
The New Caledonian Competition Authority Issues Its First Decision To Impose Sanctions Relating to the Exclusive Distribution of Elevators
On December 26, 2019, the New Caledonian Competition Authority issued its first decision to impose sanctions, fining four undertakings, two suppliers and two distributors for having established exclusive import rights in the elevator sector (Decision 2019-PAC-05). The Authority issued a total fine of CFP 7.6 million (approx. 63,688 euros) and accepted the binding commitments offered by the four undertakings.
The European Commission Receives Feedback From National Competition Authorities on Its Review of the VBER
On December 13, 2019 the Commission published an anonymized summary of the contributions submitted by NCAs during the Commission’s ongoing evaluation of the Vertical Block Exemption Regulation (“VBER”) and the accompanying Guidelines on Vertical Restraints (“Guidelines”), which will lapse in 2022.[1] The Commission received 20 contributions from NCAs across the EEA.[2]
The French National Architects Council Fined €1.5 Million for Anticompetitive Practices
On September 30, 2019, the FCA sanctioned the French National Architects Council (Ordre des architectes) for fixing prices in the context of public works contracts.
The Paris Court of Appeals Reduces Stihl’s Fine for Online Sales Restrictions
On October 17, 2019, the Paris Court of Appeals confirmed the FCA’s decision against Stihl for online sales restrictions, but reduced the fine from EUR 7 million to EUR 6 million.[1]
Working Group On Competition Law Discussed Changes To The European Vertical Block Exemption Regulation
On October 10, 2019, the Working Group on Competition Law held its annual meeting in Bonn. The FCO and more than 120 competition law experts discussed revisions to the European Vertical Block Exemption Regulation (“VBER”)[1] in light of the digital transformation of the economy.[2] In preparation for this meeting, the FCO had published a comprehensive background paper,[3] setting out the need for adaption and possible adjustments to the VBER to address online distribution and other challenges posed by the digital transformation of the economy.
The Milan Court of Appeal Upholds Judgment of Milan Court in Airport Luggage Wrapping Case
On July 30, 2019, the Milan Court of Appeal (the “Court of Appeal”) fully upheld a ruling of the Milan Court finding that Società per Azioni Servizi Aeroportuali (“SEA”) and Aeroporti di Roma (“ADR”) had put in place several anticompetitive practices in violation of Articles 101 and 102 TFEU.[1]
Hello Kitty Joins the Vertical Restraints Club
On July 9, 2019, the Commission fined Sanrio, a Japanese company that designs, produces and sells “Hello Kitty” products, €6.2 million for breaching Article 101 TFEU by imposing territorial restrictions on cross-border and online sales of merchandising products featuring Hello Kitty and other Sanrio-owned characters. The Commission granted Sanrio a 40% fine reduction in return for its cooperation.[1]