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








Friday, 31 January 2020

ECJ rules on pay for delay




ECJ rules on pay for delay

In a wide ranging and important judgment the European Court of Justice (ECJ) has ruled on various questions referred to it by the UK Competition Appeal Tribunal. 

The ruling arises out of an appeal against a decision of the Competition and Markets Authority finding that GlaxoSmithKline, Alpharma Limited and Generics (UK) Limited infringed EU and UK competition law through patent settlement agreements that it found delayed the generic entry of paroxetine.

As to the question of whether manufacturers of generic drugs who had not yet entered the market were potential competitors, the ECJ ruled that it was  

necessary to consider whether the manufacturer of generic medicines has a firm intention and an inherent ability to enter the market, having regard to barriers to entry.  Patent rights of themselves do not constitute an unsurmountable barrier to entry.



As to the question of restrictions of competition by object, the ECJ ruled that patent settlements whereby a generic manufacturer agrees not to enter the market or challenge a patent in return for a transfer of value have the object of restricting competition if it is clear that this can have no explanation other than the commercial interest in the parties not competing.



As to the question of restriction of competition by effect, the ECJ ruled that it is necessary to determine how the market will probably operate in the absence of the practice.



As to abuse of dominance, the ECJ ruled that a set of settlement agreements which have, at the least, the effect of keeping potential competitors temporarily outside the market constitutes an abuse, provided that the strategy has the capacity to restrict competition.



Case C-307/18 , Generics (UK) Ltd e.a. v Competition and Markets Authority ECLI:EU:C:2020:52

Thursday, 23 January 2020

CMA fines Fender for restricting online sales of guitars




CMA fines Fender for restricting online sales of guitars



The Competition and Markets Authority (CMA) has imposed a £4.5 million fine on Fender Musical Instruments Europe for violations of EU and UK competition law by engaging in online resale price maintenance (RPM) of its guitars.

The penalty includes a 60% discount under the CMA’s leniency programme and a further 20% discount to reflect settlement.

The fine is the largest that the CMA has imposed to date in respect of RPM and follows its decision to fine Casio £3.7 million for similar practices in relation to digital pianos and keyboards.

More generally, the decision affirms the CMA’s tough stance to RPM infringements.  Since 2016, the CMA has fined a number of companies for online RPM in the light fittings, bathroom fittings and commercial refrigeration sectors. In 2018 the CMA issued 4 advisory letters and 34 warning letters about resale price maintenance.

Tuesday, 21 January 2020

CMA fines tech company for failure to cooperate with market study


CMA fines tech company for failure to cooperate with market study

The Competition and Markets Authority has fined AppNexus £20,000 for late submission and failure to respond to information requests during its online platforms and digital advertising market study.

The CMA maintains that the company’s conduct adversely affected the market study.

In December 2019 the CMA released interim findings that Google and Facebook are the biggest online platforms and it recommended regulation to increase competition.

The CMA found that AppNexus completed a survey three weeks after the deadline and 14 documents were sent 10 weeks late. 

The CMA can fine a company up to £30,000 for procedural infringements of this type and it said that the £20,000 penalty was “appropriate” as a deterrent against AppNexus and others, without being disproportionate.

Responding to information requests in a market study may seem like an unwelcome task for companies on the receiving end of such requests.  Although this is the first time that the CMA has used its fining powers in this context, it sends a strong message that a market study should be treated as seriously as any investigation into the company’s own business practices even though the company is not suspected of having violated competition law.

The CMA is due to issue its final report in the market study in July 2020.

Thursday, 16 January 2020

Flybe rescue fuels State aid complaint


Flybe rescue fuels State aid complaint

On 14 January HM Treasury announced measures to keep regional airline Flybe in operation prompting a State aid complaint from British Airways to the European Commission. 

Flybe is the principal airline at regional airports in Belfast, Southampton and Exeter.  The government maintains that it is important for regional connectivity.

The full details of the rescue package are not available. However, The Guardian has reported that this includes a potential loan, a short-term deferral of the Air Passenger Duty (APD) charged on carriage of passengers from UK airports, and a commitment to review the APD before the March budget.

Connect Airways has pledged additional support alongside the government measures.

The measures appear to have forestalled the immediate prospects of a third major airline collapse in the UK in the wake of experience with Thomas Cook (September 2019) and Monarch (2017).  Yet questions may be asked about the longer-term viability of the Flybe model and how it can be competitive both domestic and EU routes and with inland alternatives such as road and rail.

Source: https://www.theguardian.com/business/2020/jan/16/ryanair-demands-same-tax-holiday-amid-flybe-rescue-deal-backlash