European Commission

With the assistance of Covington, Unilever submitted the attached paper to the European Commission and a number of National Competition Authorities.  It suggests a possible framework for the application of EU competition law to sustainability collaborations between competitors.

The paper reflects insights from experts across Unilever and puts forward examples of existing or possible co-operations,…
Continue Reading Sustainability and Competition: Covington Assists Unilever on Submission to European Competition Authorities on the Competition Implications of Sustainability Cooperation

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

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

Under Article 102 of the Treaty on the Functioning of the European Union (“TFEU”), an undertaking may abuse its dominant position by “directly or indirectly imposing unfair purchase or selling prices”.  The UK Court of Appeal recently provided guidance regarding the legal test to determine whether pricing is excessive and unfair.  In March, it dismissed the UK Competition and Markets Authority’s (“CMA”) appeal in the Phenytoin case.
Continue Reading The UK Court of Appeal Clarifies the Legal Test for Excessive Pricing

The European Commission has added to its call to Member States to act on foreign direct investment (“FDI”) by announcing that it is ready to support EU-level cooperation on FDI now. Spurred on by the COVID-19 crisis and the perceived vulnerability of key EU assets, the informal cooperation announced by the Commission will bring into effect early certain elements of the EU-level screening mechanism under the EU FDI Regulation that would otherwise have come into force in October 2020.

We consider what this announcement means and share some additional insights into the current approach of the Commission and Directorate-General Trade (“DG Trade”) to the subject of FDI based on a recent forum including senior officials.
Continue Reading European Commission Goes “Live” on FDI Coordination Six Months Early, Proposing Cooperation on an Informal and Voluntary Basis

In two recent webinars covering antitrust, mergers and state aid, DG COMP senior officials shared their views on how DG COMP is operating under the current COVID-19 crisis.

Antitrust: More Flexible Enforcement

Maria Jaspers, head of unit for antitrust case support and policy, gave the following key messages:

  • The absence of legal deadlines creates certain flexibility with regard to time-tables in pending investigations;
  • The crisis may have an influence on pending policy reviews (including the vertical and horizontal block exemption regulations);
  • Several actions have been put into place: these measures include the European Competition Network’s (the “ECN”) joint statement of 23 March 2020, indicating that the Commission (and the competition authorities of the Member States) will not actively intervene against necessary and temporary measures between businesses aimed to avoid a shortage of supply;
  • She pointed to the information on DG COMP’s website titled “Antitrust Rules and Coronavirus” providing dedicated guidance to businesses. Additionally, DG COMP has set up a dedicated mailbox that can be used to seek informal guidance on specific initiatives;
  • She recalled that, on 8 April 2020, the Commission published a “Temporary Framework for assessing antitrust issues related to business cooperation in response to situations of urgency stemming from the current COVID-19 outbreak” (the “Temporary Framework”). Read more on the Temporary Framework in this blogpost. Rainer Becker, head of unit in antitrust for pharma and health services added that DG COMP is vigilantly monitoring the markets to ensure that there are no breaches on the back of the crisis and that DG COMP will continue to progress opened proceedings, including by assessing complaints and market information. However, he indicated that competition rules may in certain circumstances be applied in a more flexible manner (read more on the flexible application of competition law rules here).

Continue Reading Competition Enforcement Under the COVID-19 Crisis: DG COMP Staff’s Views

On 3 April 2020, the European Commission adopted an amendment (the “Amendment”) extending 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). The Amendment aims in particular to facilitate the grant of aid for the research, testing and production of products relevant for the fight against COVID-19 (e.g., medicines, vaccines, disinfectants, medical devices and equipment), as well as to protect jobs and to further support the economy in the context of the COVID-19 outbreak.
Continue Reading The Commission amends the Temporary Framework for State aid measures to support the economy during the COVID-19 outbreak

The European Commission has initiated a public consultation on Friday 3 April, kicking off the review of its relevant market notice. All stakeholders are invited to make their views known, over the course of a six-week period concluding on 15 May 2020.

The Notice on the definition of relevant market dates from 1997 and provides…
Continue Reading European Commission reviews its approach to market definition

On 19 March 2020, the European Commission adopted a Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak (“The Framework”). The Framework is based on Article 107(3)(b) of the TFEU, which allows State aid to be granted in order to remedy a serious disturbance in the economy. It sets out the conditions under which the Commission will assess State aid granted by Member States to remedy liquidity shortages and problems in access to finance undertakings are faced with and to ensure that the disruptions caused by the COVID-19 outbreak do not undermine their viability. Measures that meet the conditions set out in the Framework must be notified to the Commission but will be considered to be compatible with the Internal Market.
Continue Reading The Commission’s Temporary Framework for State Aid Measures to Support the Economy during the COVID-19 Outbreak

On 27 November, Johan Ysewyn and Annemarie ter Heegde (DG COMP) presented the highlights of recent EU cartel enforcement in their annual presentation at the Advanced EU Competition Law Conference in Brussels. They covered the developments in the traditional three pillars of enforcement, policy and court review.
Continue Reading Advanced Competition Law Conference Brussels – Joint Presentation on Recent EU Cartel Enforcement