IN THE NEWS
Phase II investigation for Ryanair/Aer Lingus
The European Commission has opened an in-depth (Phase II) investigation under the EU merger regulation into the proposed acquisition of Aer Lingus by Ryanair. The Commission is concerned that Ryanair and Aer Lingus are the main operators out of Dublin airport and that, on a large number of European routes, mainly out of Ireland, the two airlines are each other's closest competitors with high barriers to entry. The Commission prohibited the first proposal by Ryanair to take over Aer Lingus in its decision of 27 June 2007. This decision was upheld by the General Court in July 2010. The second proposal was notified to the Commission in January 2009 but subsequently withdrawn. The Commission has noted that, in comparison with the situation in 2007, the number of routes where both Ryanair and Aer Lingus operate has increased. Separately, Ryanair's existing 29.82% stake in Aer Lingus is currently under review in the UK by the Competition Commission, particularly as to its effects on competition between Ryanair and Aer Lingus on routes between Ireland and the United Kingdom. Click here.
European Commission clears the creation of the mobile commerce joint venture by UK mobile operators Telefónica, Vodafone and Everything Everywhere
Following a Phase II investigation under the EU merger regulation, the European Commission has unconditionally approved the proposed creation of a joint venture between Vodafone, Telefónica and Everything Everywhere in the field of mobile commerce in the UK. The Commission's preliminary investigation had indicated potential competition concerns in the nascent markets of mobile payment applications supply (so-called "mobile wallets"), mobile advertising and related data analytics services. On this basis, the Commission opened an in-depth Phase II inquiry on 13 April 2012. The Commission's market investigation caused it to conclude that a number of alternatives already exist and more are likely to emerge in the near future to ensure adequate competitive pressure on the joint venture's mobile wallet platform. As regards the joint venture's advertising and data analytics activities, the Commission concluded that there will be various other players who have access to a comparable set of data and who will offer services in competition with the joint venture. Click here.
European Commission opens Article 102 proceedings against Gazprom
The Commission has opened formal proceedings to investigate whether Gazprom, the Russian producer and supplier of natural gas, may be abusing its dominant market position in upstream gas supply markets in Central and Eastern European Member States in breach of Article 102. The Commission is investigating whether Gazprom may have divided gas markets by hindering the free flow of gas across Member States, prevented the diversification of the supply of gas and/or imposed unfair prices on its customers by linking the price of gas to oil prices. Click here.
UK
Competition Commission
- The Competition Commission has formally cleared DCC Energy UK Limited's completed acquisition of heating and transport fuel distribution businesses previously owned by Total Downstream UK plc. This confirms the Commission's provisional findings, which were published in July. Click here.
OFT
- The OFT has issued a call for information on the UK petrol and diesel sector. In light of continuing public concern about pump prices, the OFT wishes to identify the extent to which there may be competition problems in the sector. It is inviting the industry, motoring groups and consumer bodies to submit information. In particular, it will consider: whether reductions in the price of crude oil are being reflected in falling pump prices; whether supermarkets' and major oil companies' practices may be making it more difficult for independent retailers to compete with them; whether there is a lack of competition between fuel retailers in some remote communities in the UK; and whether concerns about price co-ordination and the structure of road fuels markets identified by other national competition authorities are relevant in the UK. Click here.
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