European Commission issues statement of objections in rail predatory pricing case

European Commission issues statement of objections in rail predatory pricing case

The European Commission has sent Czech rail incumbent České dráhy (CD), a statement of objections alleging breach of Article 102 of the TFEU by engaging in predatory pricing in the provision of rail passenger transport services.

The Commission maintains that in 2011 and 2012, two new rail companies started operating commercial trains on the Prague - Ostrava route in competition with CD.

The Commission alleges that CD began to offer its services at prices that did not cover its costs which had as its aim the restriction of competition.

The Commission alleges that between 2011 and 2019 CD engaged in predatory pricing on the Prague - Ostrava route.

The same operator has received attention from the Czech Office for the Protection of Competition which fined it EU 13.5 million in December 2017 for abuse of dominance by submitting a “disproportionately low” bid to the Ministry of Transport during a public procurement procedure.

https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2017

Green Deal and Competition

Green Deal and Competition

The European Commission has launched a call for contributions on how competition policy can further support the objectives of the European Green Deal.  The European Green Deal aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy.

Although competition policy is not centre stage in the fight against climate change, it can complement that agenda. 

The aim of the consultation is to gather ideas and proposals from interested stakeholders, on how EU state aid, antitrust and merger control rules could better contribute to protecting the environment and the sustainability objectives of the Green Deal.

The consultation will be open until 20 November 2020.  The contributions will inform a conference set for early in 2021.

https://ec.europa.eu/competition/information/green_deal/index_en.html

European Commission consults on Motor Vehicles Block Exemption

European Commission consults on Motor Vehicles Block Exemption

 

The European Commission has launched a public consultation on Regulation 461/2010 (the motor vehicle block exemption) and its accompany Guidelines.  The Commission invites responses by 25 January 2021.

Regulation 461/2010 expires on 31 May 2023.  It requires the Commission to produce an evaluation report on its operation by 31 May 2021.

The Commission is seeking responses to a number of questions on the review criteria (effectiveness, efficiency, relevance, coherence and EU added value), including on:

1.         Whether competition in new motor vehicle distribution, repair and maintenance services, and distribution of spare parts has intensified, weakened or stayed the same since 2010.

2.         Whether the scope of the block exemption (particularly 30% market share threshold and list of hardcore restrictions) is still appropriate and effective.

3.         Whether the objectives of the block exemption (in terms of promotion of competition and removal of restrictions) have been met and the prevalence in practice of the different types of restrictions referred to in the motor vehicle block exemption rules (including whether any indirect means of achieving anti-competitive results have been encountered).

4.         Whether the block exemption (including definitions and particular provisions) has provided clarity and increased legal certainty as to the applicable rules.

5.         What costs have been incurred in complying with the block exemption and whether these have been proportionate to any resultant benefits.

6.         Whether the objectives of the rules remain relevant, with regard to any changes in the market.

7.         Whether the motor vehicle block is consistent with the vertical block exemption and other EU rules.

8.         Whether the motor vehicle block exemption rules have made it easier for national authorities and courts to apply the rules or whether national rules could have been equally effective.

https://ec.europa.eu/competition/sectors/motor_vehicles/legislation/mvber_review.html

 

 

CMA Article 9 referral request in Liberty Global (Virgin Media) / Telefónica (O2) merger

CMA Article 9 referral request in Liberty Global (Virgin Media) / Telefónica (O2) merger

The Competition and Markets Authority (CMA) has made a request to the European Commission under Article 9 of the EU Merger Regulation to request the transfer of the proposed JV between Liberty Global and Telefónica to merge their UK businesses.

The CMA believes that the case should be transferred to the UK given its potential impact on competition in several retail and wholesale telecommunication markets in the UK.

The CMA considers that any impact on competition will be limited to UK consumers.

In 2015, the European Commission rejected the CMA's request for referral of the Hutchison 3G /Telefonica UK merger.

The European Commission must take its decision on whether or not to refer the case to be investigated by the CMA under the Enterprise Act 2002 by 19 November 2020.

https://www.gov.uk/government/news/cma-requests-review-of-virgin-and-o2-merger

CMA opens competition investigation into drug for treatment of bi-polar disease

CMA opens competition investigation into drug for treatment of bi-polar disease

The Competition and Markets Authority (CMA) has started an investigation into a suspected abuse of dominance by Essential Pharma over its decision to cease supply of Priadel, a medicine for the treatment of bi-polar disease.

The CMA believes that the withdrawal of Priadel could mean that patients need to switch to alternative, more expensive treatments, such as Camcolit.

This is of particular concern due to the increased and ongoing pressure on the NHS given the COVID-19 pandemic.

Following the opening of the CMA’s investigation, Essential Pharma has said that it will continue to supply Priadell to facilitate pricing discussions.  This was after the Department of Health and Social Care asked the CMA to impose interim measures.

The CMA's investigation remains open as the prospect of withdrawal remains unless agreement can be reached on price.

https://www.gov.uk/government/news/cma-to-investigate-the-supply-of-bipolar-drug

Ofgem issues Statement of Objections to PayPoint

Ofgem issues Statement of Objections to PayPoint

Ofgem has issued a statement of objections to PayPoint in its investigation into a suspected infringement of UK and EU competition law.

PayPoint provides over-the-counter (OTC) payment services to prepayment energy customers in the UK.

The statement of objections alleges that PayPoint held a dominant position in the market for OTC payment services for prepayment energy customers for at least the period from April 2009 to October 2018.  It further alleges that PayPoint included exclusivity clauses in most of its contracts with energy suppliers and retailers, excluding its competitors from the market and in breach of Article 102 of the TFEU and/or the Chapter II prohibition.

PayPoint now has an opportunity to respond to the allegations.  The case will then be considered by Ofgem’s enforcement decision panel.

https://www.ofgem.gov.uk/publications-and-updates/investigation-whether-paypoint-plc-has-infringed-requirements-chapter-ii-competition-act-1998-andor-article-102-treaty-functioning-european-union