Competition weekly news summary
4 September 2015


Competition

  • Policy brief on improving competition in the Member States to boost growth
    27 July 2015
    Go to policy brief >
  • Brochure on competition policy facts, figures and priorities
    July 2015
    Go to brochure >

Antitrust

  • Commission updates its antitrust procedures to ensure effectiveness of the Damages Directive
    3 August 2015
    The Commission has adopted amendments to its antitrust procedural rules (Regulation 773/2004) and four related Notices (the Notices on Access to the File, Leniency, Settlements and Cooperation with National Courts). These amendments reflect provisions of the new Directive on Antitrust Damages Actions on accessing and using information in the files of competition authorities (also see Press release). The Damages Directive will give victims of antitrust violations easier access to evidence they need to prove the damage suffered and more time to make their claims. It aims to achieve a more effective enforcement of EU antitrust rules overall, whilst preserving the attractiveness of tools used by European and national competition authorities (in particular the leniency and settlement programmes). Member States need to implement the Damages Directive by 27 December 2016. The Regulation and the four Notices currently contain rules that deviate from the regime as provided for in the Directive. These differences will be addressed by today's amendments to ensure an effective protection of such documents in Commission investigations. There are also several smaller changes, such as to include established practices in the Commission's leniency and settlements programmes in the text of the Regulation.
    Full texts available here >

Mergers

  • Commission opens in-depth investigation into acquisition of parts of Walki's industrial packaging division by Mondi
    2 September 2015
    The Commission has opened an in-depth investigation to assess whether Mondi's plans to take over two industrial packaging plants currently owned by Walki are in line with the EU Merger Regulation. Mondi produces packaging, paper, as well as extrusion coating products (stron, moisture resitant foil used for example for food wrapping, insulation material or envelopes). The plants Mondi intends to buy from Walki also manufacture extrusion coating products. The Commission has concerns that the removal of a key competitor may lead to less choice and ultimately higher prices for customers of products such as wrapping paper and moisture barriers used for example in boxes for fresh food products.
    Read more >
  • Commission clears acquisition of BG Group by Royal Dutch Shell
    2 September 2015
    The Commission has approved the acquisition of BG Group by Royal Dutch Shell. The Commission concluded that the takeover would not enable Shell to exert market power in the liquefaction of gas and the wholesale supply of liquefied natural gas (LNG). Moreover, the Commission found that Shell would be unable to shut out its competitors from access to its liquefaction facilities that supply LNG into the EEA or from gas transportation and processing infrastructure in the North Sea.
    Read more >
  • Commission approves acquisition of Hospira by Pfizer, subject to conditions
    4 August
    The Commission has approved the proposed acquisition of Hospira by Pfizer. Both companies are US based and active globally in the development and marketing of human pharmaceuticals. The approval is conditional on Pfizer divesting certain sterile injectable drugs, as well as its infliximab biosimilar drug, which is currently under development. The Commission had concerns that the merged entity would have faced insufficient competitive pressure from the remaining players in these markets, with a risk of price rises and of Pfizer's infliximab not being brought to the market. The commitments offered by the companies address these concerns by removing the overlaps between Pfizer and Hospira in the markets concerned.
    Read more >
  • Commission opens in-depth investigation into proposed acquisition of TNT by FedEx
    31 July 2015
    The Commission has opened an in-depth investigation to assess whether the proposed acquisition of TNT Express by FedEx Corporation is in line with the EU Merger Regulation. Both companies are major global players in the small package delivery sector. The Commission has concerns that on a number of European markets for international express and regular (so-called ‘deferred') small package deliveries, the merged entity would face insufficient competitive constraints from the only two remaining players (UPS and DHL). This could lead to higher prices for business customers and consumers.
    Read more >
  • Latest Merger Brief online
    23 July 2015
    Go to Merger Brief 2015/2 >

State aid

  • Commission approves £50 million UK support for the research and development of an innovative space launcher engine
    14 August 2015
    The Commission has found UK plans to provide a £50 million (around €71 million) grant for the development of the SABRE space launcher engine to be in line with EU state aid rules. SABRE is a research and development (R&D) project carried out by UK company Reaction Engines Limited (REL). The project aims to develop an engine that would power a reusable airframe to launch satellites into low Earth orbit, significantly reducing the costs of such space missions. The Commission found that the measure fosters aerospace R&D in Europe while limiting distortions of competition in the Single Market.
    Read more >
  • Commission finds Italian tax reductions for companies in areas affected by natural disasters also benefitted companies that suffered no damage
    14 August 2015
    After an in-depth investigation, the Commission has found that certain Italian measures reducing company taxes and social security contributions in areas affected by natural disasters also benefitted companies that suffered no damage from natural disasters and overcompensated companies beyond the damage suffered. The Commission and EU state aid rules fully support public measures to compensate companies that have suffered damage due to natural disasters. However, if such measures are not properly designed and well-targeted for their purpose, they can give an unfair competitive advantage to companies, distorting competition in the Single Market, and cannot be justified under EU state aid rules.
    Read more >
  • Commission opens in-depth investigations into Romanian measures in favour of two airports and airlines
    31 July 2015
    The Commission has opened two separate in-depth investigations to examine if measures in favour of two publicly-owned airports in Romania and airlines operating there were in line with EU State aid rules. The investigations concern in particular marketing fees paid to Wizz Air by Cluj-Napoca International Airport and low airport charges offered by Tārgu Mures Transilvania Airport to airlines operating there. The Commission will also investigate subsidies by local authorities to the airports themselves.
    Read more >
  • Commission approves €125 million in restructuring aid to Kem One
    28 July 2015
    Following an in-depth investigation, the Commission has found that French public aid measures in support of Kem One SAS, a chlorochemicals and PVC producer, are in line with EU State aid rules. The Commission considered that the restructuring plan for Kem One will allow the company to become viable again in the long term without needing further state support, and without unduly distorting competition in the Single Market.
    Read more >
  • Commission refers France to Court for failure to recover incompatible aid from airlines
    27 July 2015
    The Commission has referred France to the European Court of Justice for failing to recover incompatible aid received by Ryanair and its subsidiary Airport Marketing Services (AMS) for using Pau, Nīmes and Angoulźme airports, as well as Transavia for using Pau airport.
    Read more >
  • Commission approves €33 million aid for charging infrastructure used by electrical vehicles in the Netherlands
    27 July 2015
    The Commission has found Dutch plans to provide €33 million of public funding for charging stations for electric vehicles to be in line with EU state aid rules. The project will contribute to the roll-out of the necessary infrastructure to make electric cars a viable alternative in the Netherlands. It promotes sustainable transport and improves air quality, without unduly distorting competition in the Single Market.
    Read more >
  • Commission opens in-depth investigation into restructuring of Portuguese bank Banif
    24 July 2015
    The Commission has opened an in-depth investigation to assess whether state aid granted by Portugal to Banco Internacional do Funchal S.A (Banif) was compatible with EU State aid rules. In particular, the Commission will investigate whether Banif's final restructuring plan will enable the bank to become viable in the long-term without continued state support and without unduly distorting competition.
    Read more >

Court

  • Preliminary ruling on state aid recovery, case C-89/14
    3 Septembre 2015
    The Court ruled on questions referred by an Italian Court regarding issues in the recovery of incompatible state aid ordered by the Commission. The Court held that Italy was entitled to apply compound interest to the recovery of the aid, even if the EU regulation to which the national legislation referred (Commission Regulation 794/2004) was not in force at the time when the Commission ordered the recovery.
    Court's press release >
    Full judgment >

The tweet of the week

  • 1 September 2015

    Commission's new Director-General for Competition

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Published by the Competition Directorate General of the European Commission. The content of this publication does not necessarily reflect the official position of the European Commission. Neither the Commission nor any person acting on its behalf is responsible for the use which might be made of the above information.

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