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11 November 2022
40/2022

 

Competition Weekly e-news

Cases, Judgments, News

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Competition

08/11/2022

Commission seeks feedback on draft revised Market Definition Notice

The European Commission has launched today a public consultation inviting all interested parties to comment on the draft revised Market Definition Notice. Market definition is an important first step in the assessment of mergers and of most antitrust cases. It serves to define the boundaries of competition between companies. The Market Definition Notice is being revised for the first time since its adoption in 1997, taking into account the significant developments of the intervening years, in particular digitalisation and new ways of offering goods and services, and to reflect the interconnected and globalised nature of commercial exchanges.

 
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State aid

11/11/2022

Commission approves €500 million Italian scheme to improve environmental performance of vessels

The European Commission has approved, under EU State aid rules, a €500 million Italian scheme to help companies in the maritime transport sector to acquire clean and zero-emission vessels, as well as to retrofit more polluting vessels. The measure contributes to the achievement of the objectives of the Commission's European Green Deal and ‘Fit for 55' package.

 
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10/11/2022

Commission approves €180 million Czech scheme to support rail and urban transport operators using electric traction

The European Commission has approved, under EU State aid rules, a €180 million Czech scheme to support rail and urban public transport operators using electric traction. The measure will contribute to improving the environmental performance of rail and urban transport, in line with the objectives of the Commission's Sustainable and Smart Mobility Strategy and the European Green Deal.

 
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04/11/2022

Commission approves €16.8 billion Danish guarantee scheme to support energy companies in the context of Russia's war against Ukraine

The European Commission has approved a €16.8 billion (DKK 125 billion) Danish guarantee scheme to support companies in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, and amended on 20 July 2022 and on 28 October 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union, recognising that the EU economy is experiencing a serious disturbance.

 
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04/11/2022

Commission approves €1.34 billion Danish scheme to support energy intensive companies in the context of Russia's war against Ukraine

The European Commission has approved a €1.34 billion (DKK 10 billion) Danish scheme to support energy intensive companies in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union, recognising that the EU economy is experiencing a serious disturbance.

 
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Mergers

08/11/2022

Commission opens in-depth investigation into the proposed acquisition of Activision Blizzard by Microsoft

The European Commission has opened an in-depth investigation to assess the proposed acquisition of Activision Blizzard by Microsoft under the EU Merger Regulation. The Commission is concerned that the proposed acquisition may reduce competition in the markets for the distribution of console and personal computers (‘PCs') video games and for PC operating systems.

 
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Court

10/11/2022

ITD and Danske Fragtmænd v Commission

The Commission takes note of today’s judgment by the Court of Justice of the European Union, which upholds the General Court’s judgment in case T-561/18, thereby confirming the relevant parts of the Commission’s decision of 28 May 2018. In its decision, the Commission approved several measures in favour of Post Danmark, of which three were appealed to the Court of Justice, including the compensation granted by Denmark to Post Danmark to deliver the universal service during the period 2017-2019.
In its judgment, the Court of Justice fully upheld the General Court’s findings confirming the Commission’s assessment with the respect to the three measures part of the appeal. In particular, it confirmed that (i) the Universal Service Obligation (‘USO’) compensation granted to Post Danmark is compatible aid; (ii) the State guarantee for redundancy payments of former civil servants in case of Post Danmark’s bankruptcy constitutes existing aid as it was granted in 2002 and does not confer a competitive advantage to Post Danmark; and (iii) the General Court’s interpretation of the cost allocation rules applicable to Post Danmark was correct, in that there was no evidence pointing to misallocation between Post Danmark’s USO account and non-USO account, and that there was therefore no State aid involved.

 
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10/11/2022

PACCAR and Others
In Case C-163/21, referred by a Commercial Court in Barcelona, the Court ruled that, in the light of primary objective pursued by the Damages Directive 2014/104, evidence which may be requested to be produced cannot be limited to pre-existing documents in the possession of the defendant or a third party. However, the Court added that the production of such evidence should be restricted to what is relevant, proportionate and proportionate to the interests at stake.
See also Curia's press release (in PDF format).
 
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10/11/2022

Zenith Media Communications
The Commission takes note of the preliminary ruling of the Court of Justice of the European Union.
In its judgment, the Court provided guidance on the interpretation of Article 4(3) TEU and Article 101 TFEU and on the method of calculation of the fine to be imposed by a national competition authority on an undertaking for an infringement of Article 101 TFEU.
We will carefully study the judgment.
 
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10/11/2022

Commission v Valencia Club de Fútbol
The Commission takes note of today’s judgment of the Court of Justice confirming the General’s Court judgment of March 2020, which had annulled a Commission’s decision on 2016 finding that Spain had granted incompatible aid to Valencia CF in the form of a State guarantee.
The Commission will carefully study the judgment and reflect on possible next steps.
See also Curia's press release (in PDF format).
 
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09/11/2022

Ryanair v Commission (Croatia Airlines; Covid-19)
The Commission takes note of today’s judgment by the General Court upholding the Commission decision of 30 November 2021. In its decision, the Commission approved an €11.7 million Croatian grant to compensate Croatia Airlines for damage caused in the context of the coronavirus pandemic by the travel restrictions and containment measures introduced by Croatia and other destination countries in the period between 19 March 2020 and 30 June 2020.
In its judgment, the General Court fully upheld the Commission’s assessment. It found that the Commission had correctly calculated the damage suffered by Croatia Airlines in the relevant period and correctly assessed proportionality of the aid. In particular, the Court held that the Commission was entitled to take operational revenues and costs recorded during the relevant period as the reference value for the calculation of the damage suffered by Croatia Airlines.
 
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09/11/2022

Ferriere Nord v Commission
The Commission takes note of the judgments by the General Court dismissing the actions brought by Alfa Acciai SpA, Feralpi Holding SpA, Ferriere Nord SpA, Valsabbia Investimenti SpA and Ferriera Valsabbia SpA for the annulment of the Commission decision of 4 July 2019 which found a cartel in the Italian market of steel reinforcing bars for concrete, in breach of Article 65 of the ECSC Treaty.
In its judgments today, the General Court fully upheld the Commission’s assessment and decision.
 
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08/11/2022

Fiat Chrysler Finance Europe v Commission
The Commission takes note of today's judgment of the Court of Justice of the European Union, which sets aside the General Court’s judgment and annuls the Commission’s Decision of 21 October 2015, finding that Luxembourg granted selective tax advantages to Fiat’s financing company, in breach of EU State aid rules.
As the Executive Vice-President Margrethe Vestager, responsible for competition policy, said today:
  • Even if the Commission’s decision was annulled, the judgment gives important guidance on the application of EU State aid rules in the area of taxation. The Court confirmed that action by Member States in areas that are not subject to harmonization by EU law is not excluded from the scope of the Treaty provisions on the monitoring of State aid.
  • The Commission is committed to continue using all the tools at its disposal to ensure that fair competition is not distorted in the Single Market through the grant by Member States of illegal tax breaks to multinational companies.
  • The Commission’s work, both on enforcement of State aid rules and on the wider taxation agenda, is yielding results beyond individual State aid decisions. Some Member States have amended their tax legislation. Many Member States have incorporated OECD rules and introduced ruling practices to address loopholes and ensure more tax fairness. We have made a lot of progress already at national, European and global levels, and we need to keep working together to succeed. This includes continuing to look at aggressive tax planning measures of Member States under EU State aid rules, in light of the most recent case law of the Court.

The Commission will carefully study the judgment and assess its wider implications.
See also Statement by Executive Vice-President Margrethe Vestager.
 
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Publications
Customer savings generated by the Commission’s antitrust and merger enforcement: a 10-year perspective

It is possible to use a relatively simple methodology relying on previous work from the OECD to estimate the direct customer savings generated by the Commission’s antitrust and merger enforcement.
[...] Impressive as these numbers may be, they only reflect the “tip of the iceberg” in terms of positive effects of competition enforcement for society. Indeed, competition enforcement also generates (i) indirect deterrence effects and (ii)positive non-price effects on innovation, quality, and productivity which are likely to be significantly larger, but also more difficult to calculate.

 
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Public consultations

14/10/2022 - 11/11/2022

EU Competition rules – specialisation agreements (extending the validity)
The purpose of this initiative is to extend the period of validity of the block exemption rules for specialisation agreements. This will give sufficient time to revise the rules and avoid any regulatory gaps or legal uncertainty.
 
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14/10/2022 - 11/11/2022

EU competition rules – research and development agreements (extending the validity)
The purpose of this initiative is to extend the period of validity of the block exemption rules for research and development agreements. This will give sufficient time to revise the rules and avoid any regulatory gaps or legal uncertainty.
 
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29/08/2022 - 21/11/2022

State aid rules for assessing State guarantees on loans – evaluation
The Guarantee Notice describes how the Commission assesses State guarantees on loans to businesses and was last reviewed in 2008. The Commission will now evaluate how the Guarantee Notice has functioned over time. The evaluation will focus on the effectiveness, efficiency, relevance, coherence and EU added-value of the Notice. To gather evidence, the Commission plans a public consultation, targeted consultations and a study.
 
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08/11/2022 - 13/01/2023

Review of the Commission Notice on the definition of relevant market for the purposes of Community competition law
The present consultation is carried out in the context of the ongoing review of the Market Definition Notice. The purpose of the consultation is to gather stakeholders’ opinion in relation to the draft revised Market Definition Notice, first rendered public on 8 November 2022.
See also the corresponding EC press release.
 
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Open calls for tender

11/11/2022 - 10/01/2023

Technical expertise in the context of investigations and compliance enforcement in relation to digital services
The subject of this call for tenders is the provision of technical expertise in relation to digital services in the context of enforcement of competition law and of ensuring contestability and fairness in that sector.
Time limit for receipt of tenders: 10/01/2023.
 
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New legislation

Other relevant information:

Commission Decisions

SA Block exemptions

European Economic Area: EFTA State aid register, EFTA Block exemption information sheets and EFTA competition cases
Court: Judicial calendar of the Court

Miscellanea: European Commission's Press Corner: Latest Daily News and Base rates in force.


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Published by the Competition Directorate General of the European Commission. The content of this publication does not necessarily reflect the official position of the European Commission. Neither the Commission nor any person acting on its behalf is responsible for the use which might be made of the above information.

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