On July 17, 2019, the Italian Competition Authority (the “ICA”) imposed fines in excess of €287 million on 23 companies for two distinct anticompetitive agreements in breach of Article 101 TFEU (the “Decision” and the “Infringements”, respectively).[1] According to the ICA, the two cartels were implemented in two different markets which were vertically related to each other, namely the upstream market for corrugated cardboard sheets (the “Sheets Cartel”) and the downstream market for corrugated cardboard cases (the “Cases Cartel”). The Infringements allegedly also involved the relevant trade association Gruppo Italiano Fabbricanti Cartone Ondulato (“GIFCO”).
Amazon Changes Business Terms Following FCO Investigation
By Cleary Gottlieb on
On July 17, 2019, the FCO terminated its abuse proceedings into Amazon.com, Inc.’s (“Amazon”) German online marketplace, Amazon.de, after Amazon had committed to making several changes to its business terms towards sellers on its marketplace. The commitments apply not only to Amazon’s business terms in Germany, but also worldwide on all its marketplaces.[1]
The 2014 Ica Decision That Fined Novartis and Roche for an Anticompetitive Agreement Aimed at Creating an Artificial Differentiation Between Two Allegedly Equivalent Medicinal Products for the Treatment of Age-related Macular Degeneration, Is Upheld by a Final Ruling of the Council of State
By Cleary Gottlieb on
On July 15, 2019, the Council of State rejected an appeal filed by F. Hoffmann-La Roche LTD and Roche S.p.A. (“Roche”), as well as Novartis Farma S.p.A. and Novartis AG (“Novartis”; jointly, the “Parties”) against a judgment issued in 2014 by the Regional Administrative Tribunal for Latium (the “TAR Lazio”).[1] As a consequence, the 2014 decision by which the ICA fined the Parties approximately €180 million overall for a violation of Article 101 TFEU (the “Decision”)[2] became final. According to the Decision, the Parties colluded with a view to creating an artificial differentiation between two medicinal products that were equivalent for the treatment of eye diseases, in order to increase sales of the more expensive one.
Commission Publishes 2018 Annual Activity Report
By Cleary Gottlieb on
On July 15, 2019, the Commission published its annual report on competition policy, setting out the Commission’s main policy and legislative initiatives, and key decisions adopted in 2018.
The Paris Court of Appeals Rules That Undertakings May Challenge the Proportionality of Fines Imposed in Settlement Proceedings
By Cleary Gottlieb on
On June 13, 2019, the Paris Court of Appeals ruled that an undertaking can challenge the proportionality of a fine set by the FCA within the range agreed with the Rapporteur Général during a settlement procedure.[1]
General Court Rejects Appeals In The Optical Disc Drive Cartels
By Cleary Gottlieb on
On July 12, 2019, the General Court rejected five appeals against a 2015 Commission decision imposing a total fine of €116 million on five cartel participants for colluding to rig optical disc drive (“ODD”) procurement tenders organized by Dell and Hewlett-Packard (“HP”).[1] The judgment serves as a reminder of the discretion the Commission enjoys when imposing cartel fines, and the General Court’s tendency to defer to the Commission’s cartel policy.
The Paris Court of Appeals Upholds the FCA’s Decision Against Janssen- Cilag’s Defamatory Practices
By Cleary Gottlieb on
On July 11, 2019, the Paris Court of Appeals dismissed most of the pharmaceutical company Janssen-Cilag’s claims in its appeal against the FCA decision fining it for delaying market entry of a generic drug[1], thereby essentially upholding the FCA’s third decision fining a pharmaceutical company for denigrating generic drugs after Sanofi-Aventis[2] and Schering-Plough.[3]
The Council of State Grants the ICA’s Appeal and Reverses the Lower Court’s Ruling Annulling a 2015 Decision Concerning an Unlawful Concerted Practice in the Railways Supply Sector Among Suppliers of Goods and Electromechanical Services for the Railway Sector
By Cleary Gottlieb on
On July 11, 2019, the Council of State set aside a judgment issued by the TAR Lazio in 2016,[1] which had annulled an ICA decision fining Firema S.p.A. (“Firema”) approximately €230,000 for its participation, together with 12 other undertakings, in a single and continuous infringement by object consisting of a secret concerted practice in the context of 24 tender procedures for the purchase of goods (mostly coils for electric traction motors) and electromechanical services (mostly repair and maintenance of those engines) for the railway sector called by awarding authority Trenitalia S.p.a.[2]
FCO Blocks Waste Recycling Deal
By Cleary Gottlieb on
On July 11, 2019, the FCO prohibited waste disposal company Remondis SE & Co. KG’s (“Remondis”) acquisition of the dual system for packing recycling DSD – Duales System Holding GmbH & Co KG (“DSD”).[1]
DCA Dismisses MVV’s Appeal to Prevent EnBW’s Blocking Minority
By Cleary Gottlieb on
On July 10, 2019, the DCA rejected German energy supplier MVV Energie AG’s (“MVV”) appeal against the FCO’s clearance decision, allowing its competitor EnBW Energie Baden- Württemberg AG (“EnBW”) to increase its stake to a minority shareholding of 28.76% in MVV.[1]