The Covington View
Introduction
On 23 July 2021, the European Commission (“Commission”) adopted an extension of the scope of the General Block Exemption Regulation (“GBER”). The revised rules concern:
Covington represented Riga International Airport and the Latvian State in obtaining State aid approval for the recapitalization of Riga International Airport. On March 8, 2021, the European Commission (EC) approved the state recapitalization of up to €39.7 million, comprising a capital injection and a waived dividend payment for the 2019 financial year.
Continue Reading Covington Helps Riga Airport Secure EC Recapitalization Approval
On 17 February 2021, the General Court of the European Union (“General Court”) in Cases T-259/20 and T-238/20 dismissed Ryanair’s challenges to pandemic aid packages introduced in France and Sweden in order to support the domestic airline sector. The judgments are the first ones where the General Court has decided on the legality of the State aid schemes adopted in response to the COVID-19 pandemic.
Continue Reading EU General Court dismisses first two challenges to State aid awarded to national airlines in response to the COVID-19 pandemic
The Commission’s Temporary Framework for State aid measures supporting the economy during the Covid-19 pandemic (the “Temporary Framework”) is proving to be a success. More than 200 Member State schemes and individual measures have been cleared under the Temporary Framework since its adoption in March 2020. It seeks to provide the European economy with a platform to recover from the crisis while limiting distortions of competition in the Internal Market.
On 28 January 2021, the European Commission (“Commission”) adopted a fifth amendment (the “Amendment”) to the Temporary Framework (see our post on the Temporary Framework here, of the first amendment here and of the second amendment here). The third amendment expanded mostly the Framework to further support micro, small and start-up companies and incentivise private investments. The fourth amendment mostly prolonged the validity of the Framework and introduced new possibilities for the State to exit from recapitalised companies while maintaining its previous stake in those companies. The New Amendment extends further the Temporary Framework until 31 December 2021.
Continue Reading The Commission Publishes the Latest Extension of the Temporary Framework for State aid measures to support the economy during the Covid-19 outbreak
On 22 April 2020, the UK Competition and Market Authority (“CMA”) published its guidance on ‘Merger assessments during the Coronavirus (COVID-19) pandemic’ (“the guidance”). Prior to the publication of the guidance, there was some speculation about whether the CMA would be more willing to accept ‘failing firm’ arguments as the economic impact of COVID-19 hit home. However, while the CMA has, as it acknowledged, “been working closely with the government to relax competition law where appropriate”, the guidance and a number of recent CMA cases make it clear that the CMA is not relaxing its merger assessments in response to COVID-19.
Continue Reading The CMA’s Guidance on Merger Assessments During the Coronavirus (COVID-19) Pandemic and Recent CMA Cases
The FDI space in Europe remains dynamic. Less than five months from the entering into force of the EU FDI Regulation, and just two months since the European Commission asked the Member States to both strengthen and “vigorously” implement the tools available to them and, where appropriate, introduce new FDI screening mechanisms –on which we reported in our previous alert –the past week manifested a number of legislative activities across Europe.
In this blog, we consider the changes proposed or made to laws in Germany, Hungary, Poland and Austria. Overall, we observe a further tightening of the legislative field, lowering the intervention thresholds / filing requirements, while increasing the sectors covered.
Besides the jurisdictions covered in the following, a new FDI law was also proposed in the Czech Republic in April and will be discussed and debated in the Czech Parliament in the coming weeks – watch this space for further updates.
Continue Reading Regulation of Foreign Direct Investment (“FDI”) gathers Pace across Europe – A Week of Change.
The Covington US and EU Competition/Antitrust teams will be updating you regularly, through the Covington Competition blog, on the competition/antitrust law implications – both procedural and substantive – of the COVID-19 crisis in the US and the EU. This is our update for Friday 29 May 2020. Today’s new updates as compared to the previous update are highlighted – these are the headlines:
Continue Reading COVID 19 – US and EU Competition Law Implications (29 May 2020)
In response to the ongoing COVID-19 pandemic, the European Commission (“EC”) is taking steps to stabilise the most affected sectors of the economy. As part of its efforts, the EC has announced its support for the agricultural and food sectors which are severely affected by the pandemic. This includes an exceptional derogation from the EU competition rules for certain sub-sectors.
Continue Reading European Commission Adopts Measures Aimed at Mitigating the Effects of COVID-19 in the Agri-Food Sector
The Covington US and EU Competition/Antitrust teams will be updating you regularly, through the Covington Competition blog, on the competition/antitrust law implications – both procedural and substantive – of the COVID-19 crisis in the US and the EU. This is our update for Tuesday 12 May 2020. Today’s new updates as compared to the previous update are highlighted – these are the headlines:
Continue Reading COVID 19 – US and EU Competition Law Implications (12 May 2020)
On 8 May 2020, the European Commission (“Commission”) adopted a second amendment (the “New Amendment”) to the Temporary Framework for State aid measures to support the economy during the COVID-19 outbreak (the “Temporary Framework”) (see our previous post on the Temporary Framework here and on the first amendment here). The New Amendment sets out the conditions under which Member States may provide equity and/or hybrid capital (“Recapitalisation Measures”) as well as subordinated debt to non-financial undertakings that face serious economic difficulties as a result of the COVID-19 outbreak.
Continue Reading The European Commission Includes Recapitalisation Measures in the Temporary Framework for State Aid Measures to Support the Economy During the COVID-19 Outbreak
