In the News
ECJ upholds European Commission decision in AstraZeneca case
The ECJ has dismissed the appeal brought by AstraZeneca against the judgment of the General Court, which mainly upheld the Commission's Article 102 decision to fine AstraZeneca €60 million for abusing its dominant position relating to its anti-ulcer medicine Losec. The ECJ confirmed that misuses of regulatory procedures can in certain circumstances constitute abuses of a dominant position within the meaning of Article 102. The first abuse upheld by the ECJ involved the provision of misleading information to national patent offices with the aim of preventing or delaying market entry of competing generic products. The second abuse upheld by the ECJ involved the deregistration of the market authorisation for Losec in selected countries, with the aim of raising barriers against generic entry and parallel trade. The ECJ stated that a dominant company has a special responsibility under Article 102 and that it cannot therefore use regulatory procedures in such a way as to prevent or hinder market entry by competitors, unless the company is defending its legitimate interests by engaging in competition on the merits or there are objective justifications for the conduct. Click here.
European Commission opens Phase II investigation into merger of Munksjö and part of Ahlstrom
The European Commission has opened an in-depth Phase II investigation under the EU Merger Regulation into the planned combination into a new merged entity of Munksjö AB, a Swedish-based manufacturer of paper products, and the European label and processing business of Ahlstrom Corporation, a Finnish manufacturer of high performance materials. The Commission has indicated that it has potential competition concerns in the markets for pre-impregnated paper and abrasive paper backings. Click here.
European Commission opens Article 102 proceedings against Romanian Power Exchange
The European Commission has opened formal Article 102 proceedings against OPCOM, the operator of the only power exchange in Romania, and Transelectrica, its parent company and the transmission system operator in Romania. The Commission is concerned that OPCOM may be abusing its dominant position by discriminating against companies on the basis of their nationality or place of establishment. In particular, the Commission is investigating OPCOM's requirement that all participants on the spot markets on the power exchange hold a Romanian VAT registration and consequently are established in Romania. The Commission is concerned that this practice may increase the costs for foreign traders to do business on the power exchange and deter foreign traders from entering the Romanian electricity wholesale market. Click here.
EU
Article 101
- The ECJ has overturned the General Court's judgment in the international removal services cartel case following an appeal by the European Commission. The General Court had annulled the Commission's decision in its entirety in relation to one of the parties, on the basis that the Commission had erred in finding that the party had participated in all of the cartel conduct in question. The ECJ found that the General Court should have only partially annulled the decision, as the party had engaged in part of the infringement, and so the ECJ reinstated the fine (albeit at a reduced level). Click here.
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