"Competition weekly e-news" Newsletter Issues

Commission approves €1.25 billion German measure to recapitalise TUI (04/01/2021)

The European Commission has approved German plans to contribute up to €1.25 billion to the recapitalisation of TUI AG (TUI), the parent company of the TUI Group, as part of a wider support package. The measure was approved under the State aid Temporary Framework.

Commission approves €73 million of Italian support to compensate Alitalia for further damages suffered due to coronavirus outbreak (29/12/2020)

The European Commission has found €73.02 million of Italian support in favour of Alitalia to be in line with EU State aid rules. This measure aims at compensating the airline for the damages suffered on 19 routes due to the coronavirus outbreak between 16 June and 31 October 2020.

Commission approves €120 million Greek support to compensate Aegean Airlines for damages suffered due to coronavirus outbreak (23/12/2020)

The European Commission has found a Greek grant of €120 million to Aegean Airlines to be in line with EU State aid rules. The measure aims at compensating the airline for the losses directly caused by the coronavirus outbreak and the travel restrictions imposed by Greece and other destination countries to limit the spread of the coronavirus.

Commission approves €2.9 billion Polish scheme to support micro, small and medium-sized enterprises in context of coronavirus outbreak (23/12/2020)

The European Commission has approved an approximately €2.9 billion (PLN 13 billion) Polish State aid scheme to support micro, small and medium-sized enterprises active in certain sectors, including the retail, hospitality, leisure and transport ones, affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Commission approves €300 million German aid scheme to support transition to sustainable local public transport (22/12/2020)

The European Commission has approved, under EU State aid rules, a €300 million German scheme to support innovative projects aimed at strengthening sustainable local public transport through investment and innovation. The scheme will contribute to the achievement of the EU's environmental and climate goals, without unduly distorting competition.

Commission approves €650 million Polish support to LOT in context of coronavirus outbreak (22/12/2020)

The European Commission has approved two Polish measures, for a total of about €650 million (approximately PLN 2.9 billion), to support the airline LOT in the context of the coronavirus outbreak. The aid measures consists of a €400 million (approximately PLN 1.8 billion) subsidised loan and a capital injection of around €250 million (approximately PLN 1.1 billion). The measures were approved under the State aid Temporary Framework.

Commission approves €900 million Slovenian scheme to support uncovered fixed costs of companies affected by coronavirus outbreak (21/12/2020)

The European Commission has approved a Slovenian €900 million scheme to cover part of the uncovered fixed costs of companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Commission puts forward initiatives to further facilitate implementation of recovery and coronavirus support measures (21/12/2020)

The European Commission has today published guiding templates to assist Member States in the design of their national recovery and resilience plans in line with EU State aid rules. Second, to further facilitate the implementation of InvestEU and EU and national funds allocated for the recovery, the Commission is consulting Member States on a possible extension of the General Block Exemption Regulation. Finally, the Commission is conducting a survey with all Member States to seek their views on the implementation of the State aid Temporary Framework.

Commission approves the merger of Fiat Chrysler Automobiles N.V. and Peugeot S.A., subject to conditions (21/12/2020)

The European Commission has approved, under the EU Merger Regulation, the proposed merger between the automotive companies Fiat Chrysler Automobiles N.V. ('FCA') and Peugeot S.A. ('PSA'). The approval is conditional on full compliance with a commitments package offered by the companies.

Commission opens in-depth investigation into proposed acquisition of Willis Towers Watson by Aon (21/12/2020)

The European Commission has opened an in-depth investigation to assess the proposed acquisition of Willis Towers Watson by Aon, under the EU Merger Regulation. Aon and Willis Tower Watson are both insurance and re-insurance brokers, as well as providers of other professional services to corporate customers.

Draft EU-UK Trade and Cooperation Agreement (24/12/2020)

The Agreement establishes the basis of a future, broad relationship between the EU and the UK.
The provisions relevant to the level playing field for open and fair competition can be found under Title IV of the Agreement. The Parties recognise that trade and investment between the EU and UK require conditions that ensure a level playing field for open and fair competition. Both parties acknowledge that anticompetitive business practices may distort the proper functioning of markets and undermine the benefits of trade liberalisation. Each Party commits to maintaining competition rules that effectively address anticompetitive business practices. Each Party shall enforce competition rules within its own territory.
See also:

• Draft EU-UK declarations.
• Questions & Answers: EU-UK Trade and Cooperation Agreement.

State aid rules for research, development & innovation (framework) (15/12/2020)

The fitness check evaluation concluded that the 2014 State aid rules for research, development and innovation (RDI) have been broadly effective and efficient. However, some targeted updates to reflect economic and technological developments are needed.

This initiative will further simplify the rules applied by EU countries to implement RDI aimed at innovative solutions. For example, in digital, health and carbon-neutral technologies that support the transition to a green and digital economy.

State aid – rules on risk finance for small and medium-sized enterprises (SMEs) (17/12/2020)

A recent evaluation has shown that the rules allowing EU countries to help SMEs access finance with a minimum of red tape are broadly fit for purpose.

This initiative will make some technical improvements to make it easier to apply the rules and make them more effective and efficient. EU countries will be able to set up dedicated support for young and innovative businesses and steer investments to the relevant fields for a greener and more digital economy.

Commission clears acquisition of Fitbit by Google, subject to conditions (17/12/2020)

The European Commission has approved, under the EU Merger Regulation, the acquisition of Fitbit by Google. The approval is conditional on full compliance with a commitments package offered by Google.

Commission publishes report on implementation of Damages Directive (14/12/2020)

The European Commission has published a report on the implementation of the 2014 Antitrust Damages Directive which helps citizens and companies claim damages if they are victims of infringements of EU antitrust rules, such as cartels or abuses of dominant market positions. Based on the findings of the report, the Commission has drawn positive conclusions as regards the consistent implementation of its rules. In line with the requirements in the Directive, the report has been sent to the European Parliament and the Council.

Commission approves amended Estonian scheme worth €450 million to support production of electricity from renewable sources (16/12/2020)

The European Commission has approved, under EU State aid rules, the modification of the existing aid scheme to support electricity production from renewable sources and efficient co-generation in Estonia. The measure will help Estonia reach its renewable energy targets and will contribute to the new European objective of achieving climate neutrality by 2050, without unduly distorting competition.

Commission approves €55 million German scheme to support roll-out of infrastructure for mobile communication services in German Land of Brandenburg (16/12/2020)

The European Commission has approved, under EU State aid rules, a €55 million German aid scheme to support the deployment of high-performance mobile networks in underserved areas of the German Federal State (Land) of Brandenburg.

Commission approves €30 billion Dutch scheme to support projects reducing greenhouse gas emissions (14/12/2020)

The European Commission has approved, under EU State aid rules, a €30 billion Dutch scheme to support projects to reduce greenhouse gas emissions in the Netherlands. The scheme (Stimulering Duurzame Energieproductie, "SDE++") will contribute to the EU environmental objectives without unduly distorting competition.

Commission gives green light to the Pan-European Guarantee Fund to enable up to €200 billion financing for companies affected by the coronavirus outbreak in 21 Member States (14/12/2020)

The European Commission found the creation of a €25 billion Pan-European Guarantee Fund managed by the European Investment Bank (EIB) to support companies affected by the coronavirus outbreak to be in line with EU State aid rules. The Fund is expected to mobilise up to €200 billion of additional financing to support mainly small and medium-size enterprises (SMEs) affected by the outbreak in the 21 participating Member States.

EVP Margrethe Vestager's statement at the event "IPCEI now and tomorrow - the future of European Cooperation in key technologies - celebrating the new launch of IPCEI hydrogen" (17/12/2020)

Statement by EVP Margrethe Vestager,
"IPCEI now and tomorrow - the future of European Cooperation in key technologies - celebrating the new launch of IPCEI hydrogen",
17 December 2020.

[...]"The Recovery and Resilience Facility can also be used by all Member States to finance hydrogen related projects. We will in the coming days publish a set of technical guiding templates on how such projects can be supported in line with EU State aid rules. [...]

Europe fit for the Digital Age: Commission proposes new rules for digital platforms (15/12/2020)

The Commission has proposed today an ambitious reform of the digital space, a comprehensive set of new rules for all digital services, including social media, online market places, and other online platforms that operate in the European Union: the Digital Services Act and the Digital Markets Act.

See also:

• Executive Vice-President Vestager's statement.
• Questions and answers on the Digital Markets Act.

Inpost Paczkomaty v Commission (17/12/2020)

In Case C-431/19 P (Joined Cases C-431/19 P, C-432/19 P) the court ruled on two appeals brought against the judgment of the General Court delivered on 19 March 2019 in Joined Cases T-282/16 and T-283/16 Inpost Paczkomaty and Inpost v Commission.

The court decided not to uphold any of the grounds of appeal and therefore dismissed both appeals.

American Airlines v Commission (16/12/2020)

The Commission takes note of the judgment by the General Court relating to the Commission’s decision of April 2018 by which Delta Airlines obtained grandfathering rights over one daily pair of slots for the long haul route London-Heathrow to Philadelphia.

The General Court confirmed the Commission's interpretation of the appropriate use threshold for grandfathering and the Commission’s conclusion that Delta should be awarded the grandfathering rights. It is only in case of misuse of the slot that grandfathering can be rejected. This is the same standard as the one pertaining to slot utilisation and grandfathering in the EU Slot Regulation.

Fakro v Commission (16/12/2020)

In Case T‑515/18 the court ruled on an appeal for annulment of Commission Decision C (2018) 3864 final of 14 June 2018 rejecting the complaint lodged by the applicant concerning alleged infringements of Article 102 TFEU on the market for roof windows and flanges (Case AT.40026 — Velux).

The court dismissed the appeal.

International Skating Union v Commission (16/12/2020)

The Commission takes note of the judgment by the General Court (GC) confirming the Decision of the Commission of 8 December 2017. In its Decision the Commission found that the International Skating Union's (ISU) rules restricted competition by object, as they limited athletes from participating in international speed skating events by organisers other than the ISU and its members and hindered the organisation of such events.

The General Court confirmed that when exercising their powers of regulating the sport, sports federations have to comply with EU competition rules.

The Commission takes note of the GC's judgement partially annulling specific parts of the decision concerning the ISU's compliance with the decision and potential imposition of penalty payments (Articles 2 and 4), to the extent that they require a modification of the ISU's appeal arbitration rules.

See also the Court's Press Release.

Revision of Communication on important projects of common European interest (23/11/2020)

Important projects of common European interest are strategic projects in different sectors that require joint investments by public authorities and industries from several EU countries. The current framework of rules for such projects expires on 31 December 2021 and will need some changes as part of a broader evaluation of EU State aid.

This initiative will clarify and simplify the rules, align them with current policies and adapt them to respond to economic and societal challenges.

Revision of the Energy and Environmental Aid Guidelines (EEAG) (12/11/2020)

A Fitness Check on the State aid modernisation package has been carried out. The results of this evaluation, which largely covered the time before the COVID-19 pandemic and the introduction of the twin transition, show that the EEAG and corresponding GBER rules have generally delivered on their objectives. However, it identified certain aspects where the EEAG should be modernised in a way that minimises distortions of trade and competition in the Single Market. Furthermore, the announcement of the Green Deal requires a wider and deeper review of the EEAG, in particular in the two areas mentioned below.

This initiative is guided by the general main objective of coherence with the twin green and digital transformation of the economy. The revision should result in a modernised, simplified, easy to apply and future-proof enabling framework for public authorities to help reaching the EU environmental and energy objectives in a cost effective manner with minimum distortions of competition and trade within the Union. The two main buildings blocks are a review of the compatibility criteria for environmental protection, as well as an assessment of State aid to energy intensive users.

Commission approves DIC's acquisition of BASF Colors & Effects, subject to conditions (07/12/2020)

The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of BASF Colors & Effects by the DIC Corporation ('DIC'). The approval is conditional on full compliance with a commitments package offered by DIC.

Approved €106.7 million restructuring aid and €30.2 compensation in favour of Corsair (11/12/2020)

The European Commission has approved, under EU State aid rules, two French measures in favour of Corsair, an airline active in passenger and cargo transport mainly to French overseas territories. The first measure consists in €106.7 million of restructuring aid for the company. The second measure, with a budget of €30.2 million, aims to compensate the company for damage suffered due to emergency measures put in place by governments in the context of the coronavirus outbreak.

The Interchange Fee Regulation in a rapidly evolving payment landscape: Impact and way forward (07/12/2020)

Speech by EVP Margrethe Vestager,
7 December 2020

[...] "As things continue to change and further evidence emerges, we will act, using the appropriate tools, sensibly and pragmatically. That could be a combination of enforcement and further changes to regulation, based on what is needed. We will also feed into related Commission initiatives, most notably the Payment Services Directive II. This will ensure our policy orientation is fully aligned in all areas." [...]

Competition policy: time for a reset? (07/12/2020)

Speech by EVP Margrethe Vestager,
OECD Global Forum on Competition
7 December 2020

[...] "Because competition enforcement needs to move with the times. But that doesn't mean that we should ever compromise on our commitment to keep markets competitive and fair.

Though it seems like a paradox, the truth is that competition helps us work together. It helps us make the most of our whole economy's ability to innovate; it helps us focus our resources on the things that bring the best results for our whole society; and ultimately, it helps to make sure our economy works not just for a few big companies, but for everyone."

Comune di Milano v Commission (10/12/2020)

The Commission takes note of the positive outcome of today’s judgment of the Court of Justice concerning a Commission decision regarding capital injections by the publicly owned manager of the Milan airports to its ground handling subsidiary SEA Handling.

The Court confirmed the Commission’s finding that the capital injections were imputable to the Italian State and that no private investor would have continued investing into a loss-making activity for such a long time without any concrete prospect of return on its investment.

Today’s judgment is in line with important State aid principles and strengthens the Commission’s position on the assessment of imputability and the application of the market economy investor principle.

Groupe Canal + v Commission (09/12/2020)

The Commission takes note of the judgment by the Court of Justice ('CJEU') concerning the appeal of Canal+ against the judgment of the General Court of December 2018 relating to the pay-TV case.

While the CJEU upheld the Commission's preliminary competition concerns, it annulled the Commission's decision to accept commitments from Paramount Pictures.

The commitments from Paramount Pictures addressed the Commission’s preliminary concerns that agreements between Paramount and Sky UK may have eliminated cross-border competition for pay-TV services and partitioned the EU's Single Market along national borders.

The Commission will carefully study the judgment and reflect on possible next steps.

(See also Curia's Press Release)

Commission approves German "umbrella" scheme to enable capital support to enterprises affected by coronavirus outbreak (01/12/2020)

The European Commission has approved German plans to set up a scheme under which the German federal and regional authorities can invest through debt and equity instruments in enterprises affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Commission approves State compensation granted by Italy to Poste Italiane for its universal postal service obligation (01/12/2020)

The European Commission has found the compensation granted by Italy to Poste Italiane to fulfil its public service mission (so-called "universal service obligation" or USO) during the 2020-2024 period to be in line with EU State aid rules.

Commission approves €20 million voucher scheme to support access to broadband services by students in Greece (03/12/2020)

The European Commission has approved under EU State aid rules a €20 million voucher scheme to help students in Greece access broadband services and benefit from remote online learning.

Commission requires Italy to put an end to tax exemptions for ports (04/12/2020)

The European Commission has required Italy to abolish the corporate tax exemptions granted to its ports, in order to align its tax regime with EU State aid rules. Profits earned by port authorities from economic activities must be taxed under normal national corporate tax laws to avoid distortions of competition. Today's decision results from the Commission's inquiries into the taxation of ports in Member States.

Commission concludes that the Madeira Free Zone scheme not implemented in line with approved conditions (04/12/2020)

The European Commission has found that the implementation of the Madeira Free Zone aid scheme (Regime III) in Portugal is not in line with the Commission's State aid decisions of 2007 and 2013. The objective of the approved measure was to contribute to the economic development of the outermost region of Madeira through tax incentives. That is why the Commission decisions made the granting of tax reductions conditional on only benefitting companies that create jobs in Madeira and on applying the tax reductions to activities effectively and materially performed in Madeira.

Commission approves €625 million Italian scheme to support tour operators and travel agencies affected by coronavirus outbreak (04/12/2020)

The European Commission has approved a €625 million Italian scheme to support tour operators and travel agencies in Italy affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Commission clears Altice, Allianz and Omers' joint acquisition of Covage, subject to conditions (27/11/2020)

The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of Covage by SFR FTTH, a company jointly controlled by Altice, Allianz and Omers. The approval is conditional on full compliance with a commitments package offered by the Altice, Allianz and Omers.

Commission fines Teva and Cephalon €60.5 million for delaying entry of cheaper generic medicine (26/11/2020)

The European Commission has fined the pharmaceutical companies Teva and Cephalon €60.5 million for agreeing to delay for several years the market entry of a cheaper generic version of Cephalon's drug for sleep disorders, modafinil, after Cephalon's main patents had expired. The agreement was concluded well before Cephalon became a subsidiary of Teva. The agreement violated EU antitrust rules and caused substantial harm to EU patients and healthcare systems by keeping prices high for modafinil.

See also:

• Statement by Executive Vice-President Margrethe Vestager.
• Pay-per-delay graph.

Commission approves Austrian measures to support rail freight and passenger operators affected by the coronavirus outbreak (25/11/2020)

The European Commission has approved, under EU State aid rules, two Austrian measures supporting the rail freight sector and one measure supporting the rail passenger sector in the context of the coronavirus outbreak.

Commission approves competitive tender mechanism to compensate for early closure of hard coal-fired power plants in Germany (25/11/2020)

The European Commission found that a competitive tender mechanism introduced by Germany to compensate hard coal-fired power plants for phasing out earlier than foreseen promotes European Union climate objectives and is in line with State aid rules.

Commission approves €120 million Luxembourg scheme to support uncovered fixed costs of companies affected by coronavirus outbreak (24/11/2020)

The European Commission has approved a Luxembourg State aid scheme to support the uncovered fixed costs of companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Commission v GEA Group (25/11/2020)

The Commission takes note of the judgment by the Court of Justice relating to the Heat Stabilisers cartel case. The ruling concerns the Commission's appeal against the judgment of the General Court of 18 October 2018 (Case T 640/16).

The Court of Justice upheld the Commission's appeal, annulled the judgment of the General Court and referred the matter back to the General Court to decide on the remaining pleas.

The judgment clarifies the nature and purpose of joint and several liability when setting the fine, in line with what the Commission had argued.

SABAM (25/11/2020)

The court ruled on a request for a preliminary ruling concerning the interpretation of Article 102 TFEU in combination with Article 16 of Directive 2014/26/EU on collective management of copyright and related rights. The Court confirmed that the imposition of a tariff system on organisers of musical events for the use of copyright-protected works based on gross income from ticket sales by a copyright collecting company that has a de-facto monopoly in a Member State does not constitute an abuse of dominant position within the meaning of Article 102 TFEU.

Wikingerhof (24/11/2020)

The Commission takes note of today's ruling of the European Court of Justice (CJEU) in relation to Booking.com.

The judgment contributes to bringing competition law closer to those who seek redress, when a company is alleged to have abused its dominant position.

By interpreting the applicable EU rules on jurisdiction in civil and commercial matters, the CJEU confirmed that that court proceedings may be brought before the national court located in the market affected by the alleged anti-competitive behaviour.

In this case, the CJEU considers that Wikingerhof, a hotel company operating in Germany, may bring legal proceedings against Booking.com in Germany, the country where a potential anti-competitive practice took place, and not in the Netherlands, where Booking.com is registered.

Viasat Broadcasting UK (24/11/2020)

The Commission takes note of today's preliminary ruling by the European Court of Justice in the context of national court proceedings in the Danish TV 2 case.

The preliminary ruling was rendered following a legal question referred by the High Court of Eastern Denmark to the ECJ on whether Danish public service broadcaster should be required to pay "illegality interests" on the State aid received prior to its notification by Denmark to the Commission. The Court found that the obligation to pay "illegality interest", which is based on a failure to notify aid in contravention of the notification requirement set out in the Treaty, also applies to aid granted without prior notification but in line with Article 106(2) TFEU to an undertaking entrusted by with the operation of a service of general economic interest.

Commission refers acquisition of newly created joint venture by Telefónica and Liberty Global to the UK competition authority (19/11/2020)

The European Commission has referred the proposed acquisition by Telefónica S.A. and Liberty Global PLC of a newly created joint venture to the Consumers and Market Authority ("CMA") of the UK, at its request. The proposed joint venture will combine Telefónica's UK Limited business ("O2") and Liberty Global's Virgin Media business ("Virgin Media"). Both companies are active in the telecommunications sector in the UK.

Commission approves Austrian "Fixkostenzuschuss Phase II" scheme to support uncovered fixed costs of companies affected by coronavirus outbreak (20/11/2020)

The European Commission has approved the Austrian "Fixkostenzuschuss Phase II" scheme to support the uncovered fixed costs of companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Commission approves German "umbrella" scheme to support uncovered fixed costs of companies affected by coronavirus outbreak (20/11/2020)

The European Commission has approved a German "umbrella" scheme to support the uncovered fixed costs of companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Lietuvos geležinkeliai v Commission (18/11/2020)

The Commission takes note of today's judgment by the General Court confirming the Decision of the Commission of 2 October 2017 in the Baltic Rail case, fining Lithuanian Railways for abusing its dominant position on the Lithuanian rail freight market.

The General Court confirmed that the Commission correctly interpreted the concepts of abuse of a dominant position, of objective justification under Article 102 TFEU and also confirmed that it correctly determined of the duration of an infringement.

The Commission will closely analyse today's judgment by the General Court as far as the reduction of the fine is concerned.

Shaping the future: the role of State aid and competition rules for ensuring a sustainable green and digital recovery (16/11/2020)

Speech by Executive Vice-President Margrethe Vestager,
State Aid High Level Forum of the Member States,
16 November 2020.

[...] "Competition policy is an important part of making that change happen. If we succeed, our State aid rules probably won’t get the credit they deserve. Only a few keen observers will ever appreciate how important our rules are for taking these big steps forward.
That's not something to be disappointed about. On the contrary, it would be a mark of great success." [...]

Commission approves Danish fund to enable €1.34 billion of capital support to large companies affected by coronavirus outbreak (20/11/2020)

The European Commission has approved Danish plans to set up a fund with a target size of up to DKK 10 billion (approximately €1.34 billion) to recapitalise large enterprises affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

Welcome! (13/11/2020)

Welcome to the updated version of Competition Weekly e-news, and particularly a heartfelt welcome to new subscribers coming from the former State Aid Weekly e-News newsletter.

In this weekly newsletter you will find a comprehensive collection of the latest developments of EU competition (decisions, consultations, case-law, etc.) We hope you find it useful.

Statement by Executive Vice-President Vestager on the second investigation into Amazon's e-commerce business practices (10/11/2020)

"Today, the Commission has sent a Statement of Objections to Amazon with the preliminary conclusion that Amazon illegally distorted competition in online retail markets. The Commission has also decided today to open a second investigation into Amazon's e-commerce business practices." […]

Commission opens second investigation into Amazon's e-commerce business practices (10/11/2020)

The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers.

The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services.

Commission approves German nation-wide scheme to support deployment of Gigabit networks in Germany (13/11/2020)

The European Commission has approved, under EU State aid rules, a German scheme to support the deployment of very high capacity broadband networks offering Gigabit speeds in Germany. The aid will bring these networks to customers in areas where the market does not provide them, in line with the EU broadband connectivity objectives.