€ 20 Million, The Current Tariff For Late Notification

ECJ upholds € 20 million fine on Electrabel for late notification

On 3 July 2014, the European Court of Justice ("ECJ") dismissed Electrabel's final appeal arising from a € 20 million fine for failing to timely notify its 2003 acquisition of control of Compagnie Nationale du Rhone ("CNR") (see VBB on Competition Law, Volume 2012, No. 12, available at www.vbb.com).

In December 2003, Electrabel acquired de facto sole control of CNR by purchasing close to 50% of CNR's shares, in conjunction with other factors that gave Electrabel a powerful role in CNR's operational management and a stable majority at shareholders' meetings. 

In 2007, Electrabel began consultations with the Commission to determine whether it had obtained control, finally submitting a formal notification of the transaction in April 2008.  In part based on the duration of the delay between the acquisition and filing, the Commission fined Electrabel € 20 million for gun-jumping, i.e., implementing