European Union – antitrust

European Commission

Commission fines Pierre Cardin and its licensee Ahlers €5.7 million for restricting cross-border sales of clothing

On 28 November 2024, the European Commission imposed fines totaling €5.7 million on Pierre Cardin and its largest licensee, Ahlers, for breaching European Union (EU) antitrust rules. The companies were found to have restricted cross-border sales of Pierre Cardin-branded clothing and sales to specific customers, violating Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the European Economic Area (EEA) Agreement.

Pierre Cardin, a French fashion company, licenses its trademark to third parties for the manufacture and distribution of Pierre Cardin-branded clothing. Ahlers, the largest licensee in the EEA during the infringement period, was subject to an investigation launched by the Commission following unannounced inspections on 22 June 2021. Formal proceedings were initiated on 31 January 2022, with a Statement of Objections issued on 31 July 2023.

The investigation revealed that between 2008 and 2021, Pierre Cardin and Ahlers engaged in anticompetitive agreements and concerted practices to ensure Ahlers’ territorial protection. These agreements would have:

1. Prevented other Pierre Cardin licensees and their customers from selling, online and offline, branded clothing outside their licensed territories.

2. Restricted sales to low-price retailers such as discounters, limiting consumer access to lower-priced goods.

These alleged absolute territorial protection practices would have distorted the internal market by preventing parallel trade, which typically fosters price competition and benefits consumers with lower prices and greater product diversity.

Fines were calculated based on the Commission’s 2006 Guidelines, considering the gravity, geographic scope, and duration of the infringement. A claim for inability to pay under point 35 of the Guidelines led to a fine reduction. The final penalties were €2,237,000 for Pierre Cardin and €3,500,000 for Ahlers.

Commission carries out unannounced antitrust inspections in the data centre construction sector

On 18 November 2024, the European Commission announced that it carried out unannounced inspections at premises of companies active in the data centre construction sector. In addition, formal requests for information were sent to other companies operating in the same sector. The Commission suspects violations of Article 101 TFEU involving potential no-poach agreements. National competition authorities assisted the Commission during these inspections.

Commission fines Meta €797.72 million over abusive practices benefitting Facebook Marketplace

On 14 November 2024, the European Commission fined Meta €797.72 million for abusing its dominant position in breach of Article 102 TFEU. The investigation found that Meta:

These practices were deemed to have given Facebook Marketplace an unmatchable advantage, harming competitors and limiting consumer choice. The fine of €797.72 million was based on the Commission’s 2006 guidelines on fines, taking into account the duration and gravity of the infringement, as well as the turnover of Facebook Marketplace to which the infringements relate and which therefore defines the basic amount of the fine. The Commission has also ordered Meta to cease these practices and refrain from similar conduct in the future.

Commission opens antitrust investigation into possible anticompetitive practices by Corning over cover glass for electronic devices

On 6 November 2024, the Commission opened a formal investigation into Corning for potentially abusing its dominant position in the global market for Alkali-aluminosilicate glass (marketed as Gorilla Glass), widely used in handheld electronic devices.

The Commission’s concerns include:

– Exclusive supply obligations and rebates: Corning allegedly required original equipment manufacturers (OEMs) to source nearly all their glass needs from Corning in exchange for rebates.

– English clauses: OEMs allegedly had to report competing offers, allowing Corning to match prices.

– No-challenge clauses: Finishers were allegedly prohibited from challenging Corning’s patents.

Such agreements may have excluded rival producers, reduced customer choice, increased prices, and stifled innovation, potentially breaching Article 102 TFEU.

The Commission has adopted a Preliminary Assessment outlining its concerns, inviting Corning to propose commitments under Article 9(1) of Regulation No 1/2003. The case highlights the complexity and potential duration of antitrust investigations, influenced by the level of cooperation and procedural rights exercised by the involved parties.

Court of Justice of the European Union

General Court confirms the Commission’s amended decision against HSBC

On 27 November 2024, the General Court upheld the European Commission’s revised fine of €31,739,000 imposed on HSBC in the case HSBC Holdings and others v Commission (T-561/21). This case stems from the Commission’s 7 December 2016 decision that found Crédit Agricole, HSBC, and JPMorgan Chase had engaged in a single and continuous infringement restricting competition in the Euro Interest Rate Derivatives (EIRD) sector.

Initially, HSBC was fined €33,606,000. However, in its 2019 ruling (T-105/17), the General Court annulled the fine, citing an inadequate statement of reasons. Following appeals by both the Commission and HSBC, the Commission adopted a new decision in June 2021, recalculating the fine at €31,739,000.

HSBC subsequently challenged the 2021 decision, arguing that the fine was imposed outside the statutory limitation period. The General Court dismissed this claim, confirming that the appeal lodged by the Commission had suspended the limitation period. The Court also rejected HSBC’s remaining arguments and upheld the fine, affirming the Commission’s procedural actions and conclusions.

General Court upholds Commission decision authorising Vodafone’s acquisition of Liberty Global assets

On 13 November 2024, the General Court upheld the European Commission’s approval of Vodafone’s acquisition of Liberty Global’s telecommunications activities in Germany, the Czech Republic, Hungary, and Romania. The decision was challenged by Deutsche Telekom, Tele Columbus, and NetCologne, who argued that the merger could create a dominant position in the markets for the retail supply of TV signal transmission services to customers living in multi-dwelling units or in single-dwelling units in Germany.

The General Court found that the Commission had not made any manifest errors of assessment and had properly concluded that Vodafone and Liberty Global were not either actual or potential competitors before the merger. The Commission also established that the transaction, subject to commitments from Vodafone, would not eliminate any competitive relationship between those parties and would not give rise to a significant impediment to effective competition on the relevant markets as a matter of causality. Therefore, although Vodafone held a dominant position in the abovementioned markets, the Commission could legitimately find that there was no significant impediment to effective competition as a direct and immediate effect of the concentration.

General Court rejects Iliad’s challenge to Telecom Italia-Vodafone merger

On the same day, the General Court dismissed Iliad Italia’s challenge against the Commission’s approval of Telecom Italia (TIM) and Vodafone Italia’s merger of passive mobile infrastructure into the joint venture Infrastrutture Wireless Italiane (INWIT). Iliad, which entered the Italian market in 2016, claimed that the merger would harm competition by restricting smaller operators’ access to infrastructure.

The General Court upheld the Commission’s assessment that commitments from TIM and Vodafone, including making 4,000 sites available to competitors, addressed potential competition concerns. It concluded that the commitments sufficiently safeguarded infrastructure access, ensuring fair competition. Iliad and Fastweb, intervening in the case, were ordered to cover their own legal costs.

European Union – Digital Rules

Commission requests additional information from TikTok under the Digital Services Act

On 29 November 2024, the European Commission issued a request for information to TikTok under the Digital Services Act (DSA). The inquiry focuses on TikTok’s efforts to manage risks related to information manipulation, particularly during the recent Romanian elections.

TikTok is required to provide detailed information on measures addressing risks from inauthentic or automated activities, the impact of recommender systems, and its facilitation of third-party scrutiny. This follows a prior request for information to TikTok, Snapchat, and YouTube regarding recommender systems for electoral content.

TikTok must respond by 13 December 2024, after which the Commission will decide on further steps. The Commission also continues to collaborate with Digital Services Coordinators and hosts discussions with Romanian authorities and digital platforms.

Apple’s iPadOS must comply with Digital Markets Act obligations

As of 4 November 2024, Apple is required to ensure compliance of its iPadOS with the Digital Markets Act (DMA). Designated as a gatekeeper in April 2024, among others, Apple must allow users to set default browsers, enable alternative app stores, and ensure compatibility with accessory devices.

Apple has published a compliance report detailing measures taken to meet DMA obligations, now under assessment by the Commission. If Apple’s actions are deemed insufficient, formal enforcement measures may follow, as outlined in the DMA.

National authorities – antitrust

The Hellenic Competition Authority conducts dawn raids in the pet food sector

On 29 November 2024, the Hellenic Competition Commission (HCC) carried out unannounced inspections at the premises of undertakings in the import, production, wholesale, and retail markets of pet food. These inspections form part of an ex officio investigation into potential anti-competitive vertical agreements in breach of Article 1 of Law 3959/2011 and Article 101 TFEU. The investigation comes amid rising costs in pet food, with studies estimating 660,000 domestic dogs and 605,000 domestic cats in Greece in 2021, and pet food costs increasing significantly in recent years. The Consumer Price Index for pet products in Greece has consistently risen faster than in the Eurozone since July 2023. In September 2024, pet product inflation in Greece was 1.8%, compared to 0.6% in the Eurozone.

Romanian Competition Authority investigates abuse of dominance in hydrology data market

On 28 November 2024, the Romanian Competition Council conducted an unannounced inspection at the National Institute of Hydrology and Water Management (NIHWM). The investigation concerns NIHWM’s potential abuse of dominance in the market for hydrological data, which is essential for ecological flow studies that determine water requirements for aquatic ecosystems. NIHWM is the sole provider of such data in Romania and is alleged to have restricted access to its databases, potentially stifling competition in the market for hydrological flow studies. The investigation follows a complaint by a competitor active in this market. Documents seized during the inspections are now under analysis.

Croatian Competition Authority investigates unfair trading practices in wheat supply

On 27 November 2024, the Croatian Competition Agency (CCA) opened an infringement proceeding against Žitar d.o.o., a major food retailer, to determine whether it abused its strong bargaining power to impose unfair trading practices on wheat suppliers. The case follows a preliminary investigation into compliance with the Act on Prohibition of Unfair Trading Practices in the business-to-business food supply chain (UTPs Act). The CCA emphasised that the opening of proceedings does not imply guilt and will examine the nature and content of the business relationships between Žitar and its suppliers before making a final decision.

German Competition Authority publishes report on electricity generation market

On 25 November 2024, the Bundeskartellamt released its fifth Market Power Report, analyzing competition in electricity generation and first-time sales in Germany from May 2023 to April 2024.

Key findings include a decline in electricity demand due to reduced economic activity and an increase in electricity imports following Germany’s nuclear phase-out. Coal-fired plants were also reactivated to curb electricity prices amidst the war in Ukraine. However, domestic power plant capacities have since declined due to permanent shutdowns, raising concerns about increasing market power among leading electricity producers.

The report highlights that market power in electricity generation is linked to the indispensability of suppliers during high-demand periods when renewable energy inputs are low. It identifies RWE as having significant predictive capabilities for such periods, potentially enabling systematic price increases.

The report also examines balancing energy markets, noting that EnBW holds a dominant position in the market for positive secondary control power. The Bundeskartellamt plans to publish its next report sooner than the statutory two-year interval due to ongoing market developments.

UK Competition Authority’s provisional findings on mobile browsers and cloud gaming

On 22 November 2024, the UK Competition and Markets Authority (CMA) published its provisional findings from its market inquiry into mobile browsers and cloud gaming. It concluded that mobile browser markets are not functioning effectively for UK businesses and consumers, particularly due to Apple’s restrictive policies on iOS.

The CMA found that Apple’s rules hinder competitors from introducing innovative features, such as faster webpage loading or progressive web apps, and reduce financial incentives for competition due to its revenue-sharing agreement with Google. Regarding cloud gaming, the CMA noted that Apple’s previous prohibition of cloud gaming apps in its App Store raised concerns. However, subsequent changes by Apple have mitigated the issue, and no further intervention is recommended.

The CMA will now prioritise investigations into Apple and Google under the forthcoming Digital Markets, Competition, and Consumers Act, which allows for designation as firms with Strategic Market Status and tailored interventions. A final decision is expected in March 2025.

UK Competition Appeal Tribunal allows £7 billion claim against Google to proceed

On 22 November 2024, the Competition Appeal Tribunal (CAT) certified a £7 billion opt-out collective action against Google over alleged abuse of dominance in the UK search engine market. The claim, led by consumer advocate Nikki Stopford, alleges that Google used its dominant position in the UK search engine market to overcharge advertisers and that these costs were then passed directly on to the consumer. The CAT dismissed Google’s attempts to strike out the claim and authorised Stopford to act as the class representative, representing all UK consumers affected by Google’s practices between January 2011 and September 2023.

Dutch Competition Authority closes investigation into IT pricing agreements

On 21 November 2024, the Netherlands Authority for Consumers and Markets (ACM) ended its investigation into suspected illegal pricing agreements between a major IT device supplier, its distributors, and retailers. ACM suspected that the manufacturer and its distributors about the retail prices of retailers and which retailers were allowed to supply which customers. In addition, there were also suspicions that retailers were restricted in the sale of refurbished devices. The investigation found insufficient evidence to establish a violation but emphasised that ACM will monitor the sector closely.

Danish Competition Appeals Tribunal upholds ruling on price coordination in electricity market

On 20 November 2024, the Danish Competition Appeals Tribunal upheld a decision finding Effekthandel and eight power plants guilty of price coordination and bid rigging in auctions for manual Frequency Restoration Reserve (mFRR) in West Denmark (DK1). The illegal conduct involved pooling schemes where Effekthandel would have coordinated pricing and distributed auction earnings among participants based on their registered capacity. The Tribunal’s decision supports the Danish Competition Council’s 2023 ruling and underscores the illegality of such anti-competitive practices in the energy market.

Danish Competition Appeals Tribunal authorises publication of Effekthandel-related information

The Danish Competition Appeals Tribunal has also ruled that the Danish Competition and Consumer Authority can disclose details about Effekthandel’s customer relations (other pool members) and the MW capacity administered in the pool. This information is available in the Danish Competition Council’s decision from 25 October 2023.

Portuguese Competition Authority issues a Statement of Objections against engineering consultancy association

On 20 November 2024, the Portuguese Competition Authority (AdC) issued a statement of objections against an association of engineering consultancy companies for anti-competitive practices, including the setting of minimum fee scales to be charged by member companies and serving as a reference for the entire Portuguese market.The investigation, launched in June 2024, revealed evidence that the association had consistently adopted and published minimum price scales since at least 1994. These price lists were used by both members and non-members of the association, restricting price competition across Portugal.

Lithuanian Supreme Administrative Court confirms competition infringement by the notaries’ chamber

On 15 November 2024, the Lithuanian Supreme Administrative Court upheld a decision by the Competition Council finding that the Lithuanian Chamber of Notaries engaged in anti-competitive practices by standardising notary fees. This decision follows the judgement by the Court of Justice of 18 January 2024 in Lietuvos notarų rūmai and Others (C-128/21), which concluded that

– notaries established in a Member State are to be regarded as ‘undertakings’ within the meaning of Article 101 TFEU where they carry out the activities of approving mortgage transactions, the affixing of enforcement clauses, the execution of notarial acts, the preparation of draft transactions, advice, the provision of technical services and the validation of exchange contracts, in so far as those activities are not connected with the exercise of public authority prerogatives;

– rules standardising the way in which notaries in a Member State calculate the fees charged for carrying out certain of their activities, adopted by a professional organisation such as the Chamber of Notaries of that Member State, constitute decisions of an association of undertakings within the meaning of Article 101 TFEU;

– decisions of an association of undertakings standardising the way in which notaries calculate the fees charged for carrying out certain of their activities constitute restrictions of competition ‘by object’; and

– national competition authorities cannot impose individual fines on undertakings which are members of the governing body of that association (Presidium) where those undertakings are not joint perpetrators of that infringement.

The Supreme Court ruled that the Chamber’s resolutions, which mandated uniform fee calculations for specific notarial services, constituted a restriction of competition under both Lithuanian and EU law. However, fines imposed on individual members of the Presidium were annulled, as the Supreme Court determined that the Presidium acted on behalf of the Chamber as a whole. The decision affirms that notaries, when performing economic activities unrelated to public authority, are subject to competition law.

Romanian High Court confirms fines for retail price-fixing cartel

On 1 November 2024, the Romanian High Court of Cassation upheld fines totalling approximately RON 87.7 million (€18.8 million) imposed on retailers Auchan, Carrefour, Cora, and suppliers including Quadrant-Amroq Beverages, for fixing shelf prices during promotions. The investigation found that shelf prices were fixed or set at minimum levels, distorting market-driven pricing mechanisms. Carrefour, which acquired Cora in 2023, admitted to the infringements and did not contest the sanctions. Cora and Auchan unsuccessfully appealed the decision, with the court also rejecting Cora’s request to suspend payment of the fine.