On May 7, 2020, Advocate General (“AG”) Pitruzzella delivered his opinion on Canal+’s appeal against a 2016 Commission commitment decision in the context of its investigation into the cross-border provision of pay-TV services.[1] AG Pitruzzella concluded that by accepting Paramount’s commitments, the Commission breached the principle of proportionality because they ignored contractual rights of third parties. Should the Court of Justice (the “CJEU”) follow this opinion, the case may lead to the first annulment by the EU’s highest court of a Commission commitment decision since the adoption of Regulation No. 1/2003.
DCA Closed Cartels Proceeding Against Alleged Member of the LPG Cartels
On May 7, 2020, the DCA closed the proceedings against Propan Rheingas GmbH & Co KG (“RG”), an alleged member of the liquefied petroleum gas (“LPG”) cartel, thereby ending an almost 15-year saga.
FCJ Rules on FRAND Defense
On May 5, 2020, the Federal Court of Justice (“FCJ”)[1] granted Sisvel International S.A (“Sisvel”) an injunction against the Chinese mobile phone manufacturer Haier Group Corporation (“Haier”) to stop infringing one of Sisvel’s standard essential patents (“SEP”). In its first application of the Court of Justice of the European Union (“CJEU”) Huawei/ZTE judgment,[2] the FCJ clarified the requirement of the patent user’s willingness to license.
French Regulators Announce That They Will Increasingly Take Into Account Climate Issues in Exercising Their Missions
In early May, eight administrative bodies in charge of regulating different sectors, including the French Competition Authority (“FCA”) for competition, published a joint working paper highlighting the need to take into account the urgency of climate change in exercising their respective missions.
Aurubis’ Acquisition of Metallo Unconditionally Approved Despite Initial Buyer Power Objections
On May 4, 2020, the Commission unconditionally approved Aurubis’ proposed acquisition of Metallo, having issued formal objections just a few months earlier, in February 2020.[1] The Aurubis/Metallo decision is noteworthy for two reasons. First, in the last five years, since Margrethe Vestager became Commissioner for Competition, only one other transaction has been unconditionally cleared after the Commission had sent a Statement of Objections to the companies involved, namely Tele2 NL/T-Mobile NL in 2018.[2] Second, in Aurubis/ Metallo, the Commission’s concerns were based on buyer power, a theory of harm that has been rarely applied in the Commission’s merger review practice.
DG COMP Responds To The COVID-19 Outbreak (May 2020)
The COVID-19 pandemic has caused significant economic disruption, including supply shortages, cost increases, and liquidity constraints resulting from a prolonged shutdown. As EU Member States and businesses respond to these challenges, their actions could raise potential issues under competition law.
The French Competition Authority (“FCA”) Dismisses Molotov’s Complaint Against TF1 and M6
On April 30, 2020, the FCA dismissed Molotov’s complaint of alleged abuse of collective dominance, abuse of economic dependency and anticompetitive agreements against TF1 and M6.
The Council of State Annuls an ICA Decision That Fined the Italian National Lawyers’ Council for Failure to Comply With a Previous Infringement Decision
On April 30, 2020,[1] the Council of State confirmed the annulment of a decision issued by the ICA in 2016,[2] which had fined the Italian National Lawyers’ Council (Consiglio Nazionale Forense, the “CNF”) for failure to comply with a 2014 infringement decision.[3]
The Judgment sheds light on the procedural rules the ICA should follow in proceedings regarding alleged failure to comply with previous infringement decisions.
FCO Clears Acquisition of Vossloh Locomotives by CRRC Zhuzou Locomotives
On April 27, 2020, after an in-depth review, the FCO cleared the acquisition of Vossloh Locomotives GmbH Kiel (“Vossloh”) by CRRC Zhuzhou Locomotives Co., Ltd. (“CRRC”).[1] German shunter manufacturer Vossloh is the market leader in Europe with a market share of 40 to 50 percent. CRRC is a state-owned Chinese company and the world’s largest manufacturer of rolling stock, selling its products predominantly in China.
The Commission Doubles Down on Digital Markets
On April 24, 2020, the Commission announced that it is seeking to design and implement specific ex ante[1] and remedy tools[2] for digital markets. This follows earlier efforts related to the creation of a single data market and the proposed European approach towards artificial intelligence unveiled in February 2020.[3]