Covington Competition

The Covington View

In October, the UK’s Competition and Markets Authority (CMA) imposed a fine of 1.6 million GBP for a land agreement which it found to infringe competition law. This is the first time that the CMA has taken enforcement action and issued a fine in relation to a land agreement, despite such agreements having been covered by the Chapter 1 prohibition (the UK equivalent of Article 101 TFEU) since 2011. The imposition of the fine, together…
On 8 October 2018, the UK Competition and Markets Authority (“CMA”) published a Working Paper on the ‘use of pricing algorithms to facilitate collusion and personalized pricing’ (the “Paper”). It follows a number of other initiatives from competition authorities regarding algorithms, including the recent German Monopolies Commission’s proposals regarding pricing algorithms, which was the subject of a Covington Competition Blog post. The CMA’s analysis reflects input from algorithm providers, other competition authorities, and…
On October 26, 2018 the European Commission (“Commission”) unconditionally approved Sony Corporation of America’s (“Sony”) acquisition of control of EMI Music Publishing (“EMI”). The USD 2.7 billion (GBP 1.7 billion) acquisition results in Sony becoming the world’s largest music publisher.…
On 19 September 2018, the European Commission (“Commission”) issued a press release declaring that Luxembourg did not provide illegal State aid to McDonald’s with regards to two tax rulings that resulted in double non-taxation of franchise profits in Luxembourg. The Commission’s three-year-long in-depth investigation established that Luxembourg had merely acted in compliance with its national tax laws and that the double non-taxation was the result of a mismatch between Luxembourg and US tax law, as…
On the 10th October 2018, BEREC (the Body of European Regulators for Electronic Communications) launched its public consultation on the ‘Data Economy’. This comes at a time when different regulators are increasingly discussing the importance of big data, including the opportunities and risks that it brings about, how these may evolve, and how (and increasingly who should take the responsibility) to regulate. While the data protection and competition authorities have so far been most vocal…
On 9 October 2018, the High Court of England and Wales handed down its first reasoned damages award in a follow-on antitrust damages claim (BritNed v ABB). Although BritNed had claimed damages of €180 million, the Court awarded it only €13 million plus simple interest. The claims for lost profits and compound interest were dismissed. In doing so, the Court provided important guidance to parties involved in antitrust damages claims in England, indicating…
On August 24, 2017, the UK’s Competition and Markets Authority (“CMA”) fined Ping Europe Limited (“Ping”) £1.45 million for breaching UK and EU competition law by instituting a ban on online sales of Ping golf clubs.  Ping challenged the CMA’s decision before the Competition Appeal Tribunal (“CAT”).  On September 7, 2018, the CAT dismissed the appeal, but reduced Ping’s fine.…
The European Commission (“Commission”) recently fined Denon & Marantz, Asus, Pioneer and Philips (the “Individual Parties”) a total of EUR 111 million for restricting the ability of online retailers to set retail prices for their products – a hard-core restriction under EU competition law known as “resale price maintenance” or “RPM” (the “Infringement Decisions”). These Infringement Decisions are noteworthy because: (i) they are the first e-commerce infringement decisions since the Commission’s 2017 Final…
On 25 September 2018, Covington’s Johan Ysewyn and Jim O’Connell will speak on cartels and merger enforcement, respectively, at the 12th Annual Georgetown Global Antitrust Enforcement Symposium in Washington DC. This Symposium serves as a leading forum for in-house and outside counsel, policymakers, corporate executives, economists and academics to discuss the most recent issues in competition law and policy.…
The UK Government published its highly-anticipated technical guidance on merger review and anti-competitive activity on 13 September 2018 which will apply in the case of a ‘no-deal’ Brexit (the ‘Guidance’). Although brief, it provides market players with some form of practical advice and insights on what to expect, how cases are likely to be divided between the EU and UK regimes, how UK competition law will develop, and suggests in what ways post-Brexit competition damages…