European Commission consults on Broadcom commitments

European Commission consults on Broadcom commitments

The European Commission is consulting on commitments offered by Broadcom to address abuse of dominance concerns in relation to its practices in TV set-top box and modem chipset markets.

The Commission launched its investigation in June 2019.

Broadcom has offered commitments to address the Commission's competition concerns at worldwide (excluding China) and EEA level.  These commitments include not requiring an original equipment manufacturer (OEM) to obtain more than 50% of its systems on a chip (SoC) requirements for TV set top boxes, xDSL modems and fibre modems from Broadcom.

The commitments would apply for a period of five years.

Broadcom has stated publicly that in these “uncertain times” it would prefer to avoid protracted litigation.

The case was the first where the Commission imposed interim measures at the start of its probe and it expects to make greater use of these in digital economy cases.  The combination of interim measures and commitments would be another first.  Interim measures may well be appropriate when faced with a defined theory of harm; but they may be more concerning where they are used as a bargaining chip in commitments discussions.

https://ec.europa.eu/commission/presscorner/detail/en/ip_20_755

CMA clears Takeaway-Just Eat merger

CMA clears Takeaway-Just Eat merger

The Competition and Markets authority has approved the acquisition of Just Eat plc by Takeaway.com NV

Just Eat operates in 13 countries, including in the UK.  Takeaway.com operates in 11 countries, including the Netherlands and Germany, but exited the UK market in 2016.

The CMA took into account that there are only a few companies that act as intermediaries between restaurants and customers in the food delivery sector and that re-entry by Takeaway might have given UK customers better choice and value.

However, the CMA is of the view that there is no realistic prospect that Takeaway.com would have re-entered the supply of online food platforms absent the merger.

The CMA published its final decision 26 days ahead of the statutory deadline.  It noted that in the context of the ongoing COVID-19 situation it is seeking to adopt flexible procedures to provide business certainty as far as possible.

https://www.gov.uk/government/news/cma-gives-just-eat-and-takeaway-com-deal-the-green-light

European Commission proposes further extension to Temporary Framework to support the economy

European Commission proposes further extension to Temporary Framework to support the economy

The European Commission has sent member states a draft proposal to further extend the Temporary Framework (Framework) on state aid in the context of COVID-19.

The Commission adopted the Temporary Framework on 19 March 2020 under Article 107(3)(b) of the TFEU which enables it to approve state support measures to remedy a serious disturbance to the economy of a member state.

The first version of the Framework covered five types of state aid and was extended on 3 April to cover five further measures.

The Commission now proposes to extend the scope of the Temporary Framework to enable member states to provide recapitalisations to businesses in need.

The Commission has reminded practitioners that the existing state aid tool kit including under the General Block Exemption Regulation and sector guidelines remains applicable. This allows a variety of measures and those supporting rescue and restructuring are a first resource.

https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_20_610

PODCAST: “State aid in challenging times: “What is next for subsidy regulation in the UK after Coronavirus and Brexit?”

PODCAST: “State aid in challenging times: “What is next for subsidy regulation in the UK after Coronavirus and Brexit?”

https://www.serlecourt.co.uk/news/article/podcast-state-aid-in-challenging-times-what-is-next-for-subsidy-regulation-in-the-uk-after-coronavirus-and-brexit

COVID-19: Temporary Framework for assessing antitrust issues

COVID-19: Temporary Framework for assessing antitrust issues

On 8 April 2020, the European Commission published a Temporary Framework for assessing antitrust issues in urgent business cooperation situations arising from the 2019 coronavirus (COVID-19) outbreak.

The Commission has set up a temporary process to provide, where appropriate, ad hoc written comfort letters to undertakings in relation to specific and well-defined cooperation projects.

The procedure is reminiscent of the pre-2004 practice where the Commission issued administrative letters to companies indicating that it saw no grounds for action in relation to a notified agreement.

The Commission has already applied this procedure and is issuing a comfort letter to “Medicines for Europe”, formerly the “European Generics Medicines Association”.  The cooperation project among pharmaceutical producers targets the risk of shortage of critical hospital medicines.

https://ec.europa.eu/commission/presscorner/detail/en/ip_20_618

COVID-19 and digital markets task force

COVID-19 and digital markets task force

The Competition and Markets Authority has issued an update on its digital markets task force.  The task force was established with a mandate to report by September 2020 on a pro-competitive regime for digital platform markets.

The CMA has stated that in view of the outbreak of coronavirus and the pressures this is exerting on stakeholders, it has decided not to publish a formal consultation inviting views.  It does not intend to pursue extensive stakeholder engagement at present.

Anyone wanting to provide specific comments can do so by emailing digitaltaskforce@cma.gov.uk, and/or in discussion with the taskforce team.

Th CMA has emphasised that the work of the task force is a high priority. It will make further updates on public consultation.

https://www.gov.uk/cma-cases/digital-markets-taskforce#update-on-public-consultation