IN THE NEWS
European Commission consults on possible changes to EU merger control
The Commission has published a consultation paper inviting comments on whether the EU Merger Regulation should be amended to allow the Commission to look at non-controlling minority shareholdings and to streamline the process for case referrals between the Commission and national competition authorities. Click here.
European Commission fines Lundbeck and other pharma companies for delaying market entry of generic medicines
The Commission has imposed a fine of €93.8 million on Danish pharmaceutical company Lundbeck and fines totalling € 52.2 million on several producers of generic medicines for infringing Article 101. The Commission found that in 2002 Lundbeck agreed with each of the generic producers to delay the market entry of cheaper generic versions of Lundbeck's branded citalopram, a blockbuster antidepressant. In return, the generic producers received substantial payments and other inducements from Lundbeck. This is the first decision from the Commission that confirms that so-called "pay-for-delay" deals are regarded as serious infringements of EU competition law. Click here.
Government issues consultation on streamlining regulatory and competition appeals
The Government is consulting on possible changes to the appeals frameworks for regulatory and competition decisions. The proposed changes cover all steps in the appeals process, including initial incentives on firms to launch an appeal, grounds on which an appeal is heard, the body which hears the appeal and making the processes for conducting appeals more straightforward. Click here.
EU
Articles 101 and 102
- The European Commission has confirmed that on 18 June 2013 it carried out dawn raids at the premises of several companies active in the sector of cargo train transport services to South Eastern Europe. The Commission believes that the companies concerned may have infringed Article 101. Click here.
UK
Competition Appeal Tribunal
- The Tribunal has dismissed Akzo Nobel's appeal against the Competition Commission decision which prohibited its anticipated acquisition of Metlac Holding. The Tribunal was satisfied that Akzo Nobel was "a person carrying on business in the United Kingdom" such that the Commission had jurisdiction to prohibit the transaction. The Tribunal also concluded that the Commission had not erred in finding that Metlac competes more aggressively on price than its competitors and that the Commission had a sufficient evidential basis for its finding that the transaction might lead to a loss of competition in innovation. Click here.
Office of Fair Trading
- The OFT has announced a market study on competition in banking for small and medium-sized businesses and is seeking views on its scope. The study is part of the OFT's continuing planned programme of work in retail banking, of which the first stage was a review of personal current accounts, concluded in January. Click here.
Ofcom
- Ofcom has issued its final decision on the complaint from Thus Plc and Gamma Telecom Limited against BT about an alleged margin squeeze in wholesale call pricing contrary to the Chapter II prohibition and Article 102. Ofcom has concluded that BT's conduct did not constitute an abuse of its dominant position and that there are therefore no grounds for action. Click here.
- Ofcom has opened an investigation into a complaint from BT which alleges that the terms on which Sky offered wholesale supply of Sky Sports 1 and 2 to BT's YouView platform amount to an abuse of dominance. The complaint alleges that Sky is making wholesale supply of these channels to BT's YouView platform conditional on BT wholesaling BT Sport channels to Sky for retail on Sky's satellite platform. Click here.
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