COVID 19

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 Thursday 9 April. Today’s new updates as compared to the previous update are highlighted – these are the headlines:

  • Today’s EU updates:
      • State aid development: On 9 April, the European Commission has sent to Member States a draft proposal to further extent the scope of the Temporary Framework by enabling Member States to provide recapitalisations to companies in need. Since such public interventions may have a significant impact on competition in the Single Market, they should remain measures of last-resort. They will also be subject to clear conditions as regards the State’s entry, remuneration and exit from the companies concerned, strict governance provisions and appropriate measures to limit potential distortions of competition. The Commission aims to have the amended Temporary Framework in place by next week. Skip to relevant section.
      • The Commission has cleared a further number of State aid requests by Member States.Skip to relevant section.

Continue Reading COVID 19 – US and EU Competition Law Implications (9 April 2020)

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 Wednesday 8 April. Today’s new updates as compared to the previous update are highlighted – these are the headlines:

  • Today’s EU updates:
    • On 8 April, the European Commission published a temporary framework communication to provide antitrust guidance to companies cooperating in response to emergency shortages in critical medical goods related to the COVID-19 outbreak.  The Commission recognizes that tackling these exceptional shocks and avoiding shortages in a timely manner may require the swift coordination of companies in order to overcome the effects of the crisis to the ultimate benefit of citizens. This might, in turn, require either switching or up-scaling production in the most efficient way.  Such coordination would normally be contrary to antitrust rules. However, in the context of a pandemic, such coordination can, with appropriate safeguards, bring important benefits to citizens.  The temporary framework is meant to provide antitrust guidance to companies willing to temporarily cooperate and coordinate their activities in order to increase production in the most effective way and optimize supply of urgently needed hospital medicines. Mindful of the exceptional situation, the EC has been engaging with companies and trade associations to help them in assessing the legality of their cooperation plans and putting in place adequate safeguards against longer-term anti-competitive effects. Skip to relevant section.
    • On 8 April, the EC has issued a comfort letter – to Medicines for Europe (formerly European Generics Medicines Association).  The comfort letter addresses a specific voluntary cooperation project among pharmaceutical producers that targets the risk of shortage of critical hospital medicines for the treatment of COVID-19 patients.  Generic pharmaceutical companies produce the largest part of the critical hospital medicines that are now urgently needed in large scale volumes to avoid shortages.  In the current circumstances, this temporary cooperation appears justifiable under EU competition law, in view of its objective and the safeguards put in place to avoid anti-competitive concerns. Skip to relevant section.
    • On 8 April, DG COMP has announced that it has put in place a number of additional measures to ensure business continuity in relation to merger control filings.  DG COMP encourages parties to discuss the timing of notifications of transactions with the relevant case team.  DG COMP stands ready to deal with cases where firms can show compelling reasons to proceed with a merger notification without delay. Skip to relevant section.

Continue Reading COVID 19 – US and EU Competition Law Implications (8 April 2020)

As we now enter the third week of lockdown in the UK, this blog post rounds-up the steps that the UK Competition and Markets Authority (CMA) and certain other regulators have taken to address the unprecedented challenges facing the country.  This includes targeted relaxation of certain elements of the rules to facilitate essential forms of coordination, for example in relation to grocery supply, in addition to wider guidance on the CMA’s approach to enforcement in respect of COVID-19-related cooperation between competitors.

While certain, limited, forms of competition may be necessary to address critical supply challenges, getting such cooperation ‘right’ from a competition perspective can be complex. Firms should be aware that competition law continues to remain in force and that regulators have resolved to act against those who take advantage of the current crisis by breaching competition rules.
Continue Reading Competition law in the time of coronavirus: UK regulators’ response and approach to the COVID-19 pandemic

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 Monday 6 April. Today’s new updates as compared to the previous update are highlighted – these are the headlines:

  • Today’s US updates:
    • The DOJ issued its first business review letter under the expedited procedure, five days after receiving the request. Skip to relevant section.
    • The FTC reiterates in a new blog post that emergency conditions will not alter traditional review procedures. Skip to relevant section.
  • Today’s EU updates:
    • The Commission has amended the Temporary Framework for State aid, adding five types of state aid and expanding on the existing types of support that Member States can give to companies in need. Skip to relevant section.

Continue Reading COVID 19 – US and EU Competition Law Implications (6 April 2020)

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 Wednesday 1 April. Today’s new updates as compared to the previous update are highlighted:  EU / State Aid (clearances).
Continue Reading COVID 19 – US and EU Competition Law Implications (1 April 2020)

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 Monday 30 March. Today’s new updates as compared to the previous update are highlighted:  EU / State Aid (substantive appraisal, state aid clearances), Mergers (Denmark), Abuse and Cartel Investigations.
Continue Reading COVID 19 – US and EU Competition Law Implications (30 March 2020)

COVID‑19 has caused a public health crisis and extreme disruption to economic markets.  As communities, governments, and businesses come together to combat these challenges, questions are naturally arising about how to comply with the antitrust laws under such extraordinary circumstances.

The United States antitrust agencies have advised that, with limited exception, companies should rely on a traditional application of the antitrust rules and guidelines.  Even well-intentioned collaborations can run afoul of the antitrust rules, so it is important to seek legal counsel prior to entering into new collaborations or expanding the scope of existing ones, especially with competitors.
Continue Reading Competition Guardrails for Collaborating in Response to COVID-19

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 27 March. Today’s new updates as compared to the previous update are highlighted:  United States / Mergers and European Union / Mergers (France).
Continue Reading COVID 19 – US and EU Competition Law Implications (27 March 2020)

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 Thursday 26 March. New updates as compared to the previous update are highlighted.
Continue Reading COVID 19 – US and EU Competition Law Implications (26 March 2020)

This blog post explores whether collaboration among competitors to manufacture and/or distribute critical products and services in specific sectors such as logistics, medical supplies, and groceries and supermarkets, etc. can be justified under European competition law during a crisis even when the collaboration would not be defensible in the absence of the crisis.
Continue Reading Competition laws must be respected even in difficult times – but they are flexible!