Vertical Agreements

On June 14, 2019, the European Council adopted the “Regulation on promoting fairness and transparency for business users of online intermediation services” (the “Regulation”).[1] The Regulation seeks to address a range of issues in online search and intermediation platform-to-business relationships. It is the first piece of EU legislation to do so.

On June 11, 2019, Nustay, a Danish online booking agency, filed a complaint with the Commission against Expedia and Booking.com, alleging a breach of Articles 101 and 102 TFEU. The complaint centers on parity clauses in online hotel booking. In 2015, both Expedia and Booking.com agreed with the Danish Competition Authority to remove wide price-parity clauses from their contracts with hotels.[1] Nustay alleges that these two companies have de facto re-introduced these clauses through certain commercial practices.

On June 4, 2019, the Düsseldorf Court of Appeals (“DCA”) annulled the FCO’s 2015 decision prohibiting hotel booking platform operator Booking Holdings (“Booking.com”) from using narrow most favored nation (“MFN”) clauses.[1] The DCA’s decision aligns the German position with that of other European national competition authorities (“NCAs”). However, new causes of divergence—stemming from legislative interventions—are already emerging.

On April 29, 2019, the Regional Administrative Tribunal of Latium (“TAR Lazio”) upheld[1] the appeals submitted by five radio taxi companies against infringement decisions issued by the ICA in the context of two parallel proceedings for alleged vertical restraints (“Decisions”).[2]

Following the Commission’s market test of Visa’s and Mastercard’s commitments offered on April 29, 2019, as reported in our December 2018 newsletter, the Commission accepted the companies’ commitments to cap their inter-regional multi-lateral interchange fees (“MIFs”).[1] The commitments put an end to the first publically reported probe into inter-regional MIFs by any antitrust authority worldwide, which was opened by the Commission in 2013.

Background

On March 25, 2019, the Commission fined Nike €12.5 million for breaching Article 101 TFEU by imposing restrictions on cross-border and online sales of football merchandising products within the EEA.[1] The Commission granted Nike a 40% fine reduction in return for its cooperation.