Thursday 27 February 2020

Cheat or Compete?




Cheat or Compete?

The Competition and Markets Authority (CMA) has launched a new “Cheating or Competing” awareness campaign as part of its crackdown on cartel activities.

The CMA puts the onus firmly on business to identify the distinction between competing fairly and cheating the system through unlawful activity. 

The web resources issued by the CMA on 26 February explain the effects of breaching competition law and provide red flags that could indicate behaviour that falls the wrong side of the line. These include discussions with competitors about prices, customers or territories, or future plans, sharing competitive sensitive information, industry-wide price fluctuations, and unusual aspects of pricing documents.

The CMA notes that the campaign has won support from the Federation of Small Businesses.

Strikingly, a survey conducted by the CMA in January 2020 found that only 6% of firms are familiar with competition law and 25% saw no problem with discussing bids with a competitor in the context of tenders. These statistics may seem surprising to competition lawyers.  They show that despite the UK having had competition law in its current form for two decades, there is still much work to do in raising awareness and understanding of the rules and consequences of breach.

https://cheatingorcompeting.campaign.gov.uk/?utm_source=GOV.UK&utm_medium=Homepage-image&utm_campaign=Cheatingorcompeting_2020

Saturday 22 February 2020

European Commission fines hotel group for market partitioning


European Commission fines hotel group for market partitioning

The Commission has fined Meliá EUR 6.7 million for agreements with Kuoni, REWE, Thomas Cook and TUI that restricted active and passive sales for hotel accommodation in the EU.



The fine includes a 30% reduction for co-operation that Meliá provided during the investigation.



Meliá's standard terms contained a clause under which the contracts with tour operators were valid only for reservations of consumers who were resident in specified countries.  The Commission found that this restricted the ability of tour operators to sell the hotel accommodation in all EEA countries and to respond to passive requests direct from consumers outside the specified countries.  As a result, the clauses also discriminated between customers based on their country of residence or nationality.



The case falls under the ‘secondary line discrimination’ theory where certain clauses in contracts can be found to infringe Article 101 TFEU in extreme circumstances.  At the same time, the decision reflects the Commission’s strict stance against provisions in contracts that partition the single market.



Followjng investigation, the Commission has closed its inquiry into the tour operators.



Melia (Holiday Pricing) (Case AT.40528); Commission press release IP/20/302


Thursday 20 February 2020

UK-EU trade and the level playing field


UK-EU trade and the level playing field

The House of Lords EU Internal Market Sub-Committee has announced a short inquiry into the role of the level playing field in UK-EU negotiations with a focus on EU state aid.

The inquiry will cover:

  • What level playing field commitments are and how they operate in EU free trade agreements, especially as regards social and labour rights and state aid.
  • The EU’s approach to state aid rules and possible reforms at EU level.
  • What opportunities are open to the UK in formulating its own state aid policy, in particular for supporting wider objectives such as "levelling up" the country and meeting climate targets.

The Sub-Committee will take oral evidence from late February through March, with a view to publishing a letter to the government in April 2020.

Join me for the following upcoming events on the implications of Brexit on the future regime for state aid control in the UK:

UK Competition Law Conference: 27 February 2020

https://www.serlecourt.co.uk/events/details/uk-competition-law-2020

State aid immersion course: 5-7 May 2020

https://www.linkedin.com/feed/update/urn:li:activity:6632662769046953984

Friday 14 February 2020

CMA clears Google-Looker merger unconditionally




CMA clears Google-Looker merger unconditionally



The Competition and Markets Authority has decided not to refer the completed acquisition by Google LLC of Looker Data Sciences, Inc (Looker) to a Phase 2 merger probe.

The parties overlap in the supply of business intelligence services but the CMA considered that they are not their closest competitors.

The CMA also investigated potential vertical concerns and examined in particular whether Google could leverage market power in online advertising into search analytics, for example by restricting access to Google-generated data.  It concluded that whilst Google might have the ability to do so, it would not have the incentive to act in this way.

The decision to clear the merger unconditionally is remarkable.  The CMA has concluded that Google has market power in the relevant markets, that it has the ability to foreclose competition through the integration of the relevant services, but that it would have no incentive to do so.  Only time will tell.



Thursday 6 February 2020

CMA to conduct wide ranging review of the state of competition




CMA to conduct wide ranging review of the state of competition

The Competition and Markets Authority is set to conduct a regular review of the nature of competition in the UK.

The Secretary of State for Business, Energy and Industrial Strategy (BEIS) has said that there is currently no agreed way to measure and monitor the state of competition across the economy and has called for an expert analysis.

The objectives of this study are to provide:

·         Government with a robust assessment of how well competition is working across the economy to inform the design of effective and targeted economic policy to promote competition.

·         The CMA with useful evidence to steer its work.

·         An authoritative, accessible and transparent source of public information on how competition is evolving across the UK.

The CMA will produce its first report in summer 2020.

Monday 3 February 2020

Professor Suzanne Rab and the future of EU law in the UK post-Brexit


Professor Suzanne Rab and the future of EU law in the UK post-Brexit



In this blog post Professor Suzanne Rab reflects on the opportunities for the practice of EU law for academics and practitioners in the UK and in the wake of the UK’s departure from the EU on 31 January 2020.



Professor Suzanne Rab combines working full time as a barrister at Serle Court Chambers in London, her role as Professor of Commercial Law and Practice Chair at Brunel University and serving as a non-executive Board member of the Legal Aid Agency which dispenses civil and criminal legal aid.  She has advised the UK government on preparations for Brexit and been involved in drafting secondary legislation under the EU Withdrawal Act.







Many undergraduate law students will be wondering whether their study of European Union law and international will be relevant to their future professional practice. In my view, now more than ever EU and international law will be of increasing relevance for those who intend to pursue a career in law in the UK and also further afield.



The substantive changes to UK law as a result of Brexit will not take effect immediately.  After 31 January 2020 there will be a transition period until the end of 2020, while the UK and EU negotiate additional arrangements which may include an agreement on a future trading relationship.



The current rules on trade, travel, and business for the UK and EU will continue to apply during the transition period to the end of December 2020 (unless this period is extended by the UK requesting a one-off extension by the end of June 2020).



As someone who has practised in the area of EU law since the beginning of my career, I can say that the UK’s departure from the EU is without doubt a monumental development.  However, do not be lulled into thinking that EU law will become of diminishing relevance, at least for the foreseeable future.  Maintaining the level-playing field – which includes the rules on competition and State aid – is expected to be a key element in the negotiations over a future trade deal.  Remember also that under the withdrawal legislation much of EU law will be preserved intact as of exit day with only minor amendments.  Those lawyers who are specialists in this area will continue to be in demand, as they have been in the run-up to Brexit.  I take a long term view and expect to be actively practising in this area for decades to come.  The issue is not whether EU law will be relevant at all to the UK but how it will shape our future relationships with the EU, domestically and internationally.  In particular, the extent to which EU rules will have a direct impact on UK law will depend on the form and content of any future trade deal that is concluded between the EU and the UK.  In short, in order to gain wide access to the single market it is expected that alignment to EU rules will form part of the arrangements.  At the same time, it is important to note that many of our existing laws are modelled on EU laws and while we can expect some divergence over time, the pace and shape of this change is not yet determined. 



There are also many laws and regulations in other countries that have taken their inspiration from EU laws, particularly the laws on competition.  The UK domestic laws on competition are very similar to those of the EU and the UK is expected to continue to be a leading jurisdiction in competition law practice and regulation.  The UK Competition and Markets Authority has already invested significantly in recruiting more staff for an increased role post-Brexit.  It has also set up a new State aid function for when it assumes its new role as independent State aid regulator for the UK at the end of the transition period.  Lawyers with EU law experience will continue to be in high demand as the UK addresses its new relationship with the EU and other countries internationally.





Comparative Competition Law Summer School



I have designed and deliver an annual EU and international competition law and regulation summer school.  This course integrates both UK, EU and international competition law and regulation and practical skills elements against the evolving legal and regulatory landscape. The next presentation will run 22 June – 4 July 2020.  This 2-week integrated and intensive programme (with optional components) combines UK, EU, Asian, Latin American, ME/African and other international experience in this fast-moving, challenging and high-profile area.  It draws on experiences from established and emerging competition regimes including China, India, Hong Kong, Brazil, Mexico and Colombia which have recently adopted or revised their competition laws. The impacts will be explored across the economy and within certain sectors that have attracted regulatory scrutiny including in the communications, energy, financial services, healthcare/ pharmaceuticals, TMT, transportation and water sectors.  The programme includes cultural immersion on Campus at Brunel University and in legal London, allowing participants to engage with each other and build their networks in academic, professional and social settings.  This course will be of interest to students of EU, international law and competition law, as well as those who have not yet explored EU law.  Attendees from previous years have included students (undergraduates and PhD), lawyers in private practice and in-house, government officials, regulators, policy-makers and economists. 



Further information can be obtained from the course website here or directly from me Suzanne Rab at srab@serlecourt.uk.  To book a place please contact Nikki.Elliott@brunel.ac.uk or Tasmin.Hall-clottey@brunel.ac.uk