On July 10, 2019, the Commission conditionally cleared GlaxoSmithKline’s (“GSK”) acquisition of Pfizer’s Consumer Health Business following a Phase I review.[1] The transaction forms part of GSK’s and Pfizer’s plan to contribute their respective consumer healthcare businesses to a new venture, over which GSK will have sole control.

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]

On June 21 and July 9, 2019, the FCJ annulled two judgments of the DCA relating to the cartels in the confectionary[1] and roasted coffee[2] sectors due to procedural flaws. In both cases, the DCA had previously increased cartel fines set by the FCO. The FCJ referred both cases back to another cartel division of the DCA for a new hearing and ruling. Whether this, however, will result in an actual reduction of the fines remains to be seen.

The FCA published its 2018 annual report, which, this year, also provides an overview of the FCA’s policy and results over the last decade (see our article published in the April newsletter[1]).

On July 4, 2019, France and Germany, joined by Poland, issued a joint call to modernize European competition rules (“Joint Statement”).[1] This follows the publication in February 2019 of a Franco-German Manifesto for a European industrial policy to foster the creation of European champions.[2] The Joint Statement scales back some of the Manifesto’s far-reaching ideas.

On July 4, 2019, the Paris Court of Appeals reduced the fines imposed by the FCA in the “flour” case from €242.4 million to €96.1 million.[1] The Court reduced the fines imposed on the millers while upholding the FCA’s findings on the merits. The total fine reduction was justified by (i) the shorter duration of the infringement for two millers; (ii) the ability to pay for five millers; and (iii) the existence of a price regulation until 1978, which limited the cartel’s impact on the economy.

On July 4, 2019, following two losses at the EU Courts, the Commission re-adopted its decision to fine five Italian manufacturers of reinforcing steel bars for a price-fixing cartel. The Commission reduced the fines by an unprecedented 50% due to the length of proceedings spanning almost two decades.

On July 4, 2019, the FCA issued an opinion on the functioning of competition for the importation and distribution of consumer products in French overseas territories—one of the FCA’s “priorities” for 2019.[1] The opinion assesses progresses made since the FCA issued its first opinion on French overseas territories, and extends its assessment to online restrictions.

On July 2, 2019, the ICA, the Italian Communications Authority and the Italian Data Protection Authority (jointly, the “Authorities”) issued guidelines and policy recommendations on the digital sector, and specifically on Big Data (the “Guidelines”).[1]