On May 26, 2020, the Paris Court of Appeals confirmed the €0.9 million fine imposed on Akka Group for obstructing dawn raids conducted on its premises, including by breaking seals. This was the second decision issued by the FCA for dawn raid obstruction and the first one for breaking seals.
Dsg Retail Limited and Dixons Retail Group Limited v Mastercard
On 22 May 2020, the Court of Appeal handed down its judgment in an appeal by Mastercard against the CAT’s ruling on a preliminary issue of limitation.
FCJ Provides Useful Guidance on Umbrella Damages and the Passing on Defense in Cartels Follow-on Damages Cases
On May 19, 2020, the Federal Court of Justice (“FCJ”) overturned a judgment of the Munich Court of Appeal in one of the numerous cartel follow-on damages actions brought against members of the so-called Rail Cartel (“Schienenkartell”), this time by the Munich Transportation Authority.[1] The FCJ once more confirmed its decisional practice in the case of quota and customer protection cartels, according to which there can be no prima facie evidence that damages were incurred and/or whether individual purchase orders were affected by the cartel.[2] The decision had to be reversed, for the Munich Court of Appeal had based its decision on such prima facie evidence. Of particular interest is the FCJ’s reasoning on two other issues:
The French Cour de Cassation Upholds the Paris Court of Appeals’ Decision in the Groupement Des Installateurs Français Case
On May 18, 2020, the French Cour de Cassation upheld the Paris Court of Appeals’ judgment which had confirmed the French Competition Authority’s (“FCA”) fining decision against Groupement des Installateurs Français (“GIF”). The Cour de Cassation held that the FCA’s Collège could re-open the investigation to allow the FCA’s investigation services to add evidence on which they relied for establishing the statement of objections (“SO”) but that they “inadvertently omitted” to include in the case file. The defendant’s response to the flawed SO can remain in the case file despite the fact that the defendant did not have access to that evidence when preparing its response, as long as the defendant is given the chance to reply to a supplementary SO after the investigation is re-opened.
The TAR Lazio Upholds ICA Decision Concerning the Helicopter Service Cartels
On May 18, 2020,[1] the TAR Lazio rejected the applications for annulment of the ICA decision of February 13, 2019, brought by Airgreen S.r.l., Star Work Sky S.a.s., Elitellina S.r.l., Elifriulia S.r.l., Babcock Mission Critical Services Italia Sau, Heliwest S.r.l., Eliossola S.r.l. and the Italian Helicopter Association. By the said decision, the applicants were fined in a total amount of approx. €67,000,000 for anticompetitive conduct infringing Article 101 TFEU with regard to the award of contracts for forest fire-fighting activities.[2]
Amit Patel v CMA
On 28 May 2020, the CAT published the summary of an appeal by Amit Patel, a former director of Auden Mckenzie (Pharma Divisions) Limited and Auden Mckenzie Holdings Limited (together, Auden Mckenzie), against the CMA’s decision of 4 March 2020.
COVID-19 Update: Time-limits for Merger Control and Antitrust Proceedings Are Gradually Resuming
By Order No. 2020-560 of May 13, 2020, the Government decided not to further postpone the time limits that had been suspended or interrupted since March 12, 2020, despite the extension of the state of health emergency. Consistently, in a press release of May 18, 2020, the French Competition Authority (“FCA”) announced that it would progressively re-instate the statutory time limits that had been interrupted or suspended in light of the state of health emergency. All of these time limits will resume on June 24, 2020 at the latest.[1]
No Prima Facie Evidence for Causal Harm in Information Exchange Cases
On May 12, 2020, the Frankfurt am Main Court of Appeals found drugstore chain Anton Schlecker e.K. i.I.’s (“Schlecker”) insolvency estate was not entitled to cartel follow-on damages.[1] In the Court of Appeals’ view, Arndt Geiwitz, Schlecker’s insolvency receiver acting on behalf of the estate, did not prove the estate incurred damages as a result of the cartel’s information exchange.
Flynn Pharma Ltd and Flynn Pharma Holdings Ltd V Cma
On 12 May 2020, the Court of Appeal handed down its judgment in an appeal against the CAT’s cost ruling in the successful appeals by Pfizer and Flynn against the CMA’s abuse of dominance decision relating to the anti-epilepsy drug, phenytoin sodium. In its costs ruling, the CAT considered that the relevant starting point was that the unsuccessful party should pay the successful party’s costs.
The ICA Opens Phase II Investigation Into Intesa San Paolo/Ubi Merger
On May 11, 2020, the Italian Competition Authority (the “ICA”) adopted a decision to open an in-depth (“Phase II”) investigation into the proposed concentration between Intesa SanPaolo S.p.A. (“ISP”) and UBI Banca – Unione di Banche Italiane S.p.A. (“UBI”; the “Decision”).[1]